Education

What is CFD Trading?

Everything you need to understand Contract for Difference trading before you start.

What is a CFD?

A Contract for Difference (CFD) is a financial derivative that allows you to speculate on the price movement of an asset — without owning the underlying asset. You profit (or lose) based on the difference between the opening and closing price of the contract. CFDs are available on forex, indices, commodities, stocks, and cryptocurrencies.

How Does Leverage Work?

Leverage allows you to control a large position with a smaller amount of capital. For example, with 1:100 leverage, you can control $10,000 worth of a position with just $100 of your own funds. While leverage amplifies potential profits, it equally amplifies potential losses — so risk management is essential.

Going Long (Buy)

When you 'go long', you're buying a CFD because you believe the asset price will rise. If EUR/USD is at 1.0800 and you open a buy position, and the price rises to 1.0850, you profit from the 50-pip difference multiplied by your lot size.

Going Short (Sell)

When you 'go short', you're selling a CFD because you believe the asset price will fall. This lets you profit in falling markets — a key advantage of CFDs over traditional investing. If Gold is at $2,380 and you sell, you profit if it drops to $2,340.

Risk Management

Successful trading requires strict risk management. Always use stop-loss orders to limit potential losses. Never risk more than 1-2% of your account on a single trade. Keep a trading journal, stick to your strategy, and never trade emotionally. Maysan provides negative balance protection — you cannot lose more than your deposit.

Spreads & Costs

The spread is the difference between the buy and sell price of an instrument — this is how brokers make money. At Maysan, spreads start from 0.0 pips on major pairs for Pro and Institutional accounts. There are no hidden commissions on Standard accounts. Always check instrument specifications before trading.

Key Trading Tips

1

Start with a demo account

2

Never risk more than you can afford to lose

3

Always use stop-loss orders

4

Keep emotions out of trading

5

Trade with a clear strategy

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