XTrade and Online Trading – What You Should Know

XTrade is just one of the many trading brokers out there, but unlike most other brokers, it offers you to trade in CFDs instead of trading directly with the underlying asset. What is CFD? It stands for Contracts For Differences.

CFD - Contract For Difference

Like binary options, it is a derivative instrument, however, unlike binary options, you do not win all or lose all. Instead, a losing scenario could see you either losing all of your money or losing only a part of it. This is because CFDs gives you the opportunity to earn money from the difference in the asking and closing price.

Leverage And Ratio

So, if the price of a certain asset like USD/EUR opens at 1.6 and closes at 1.8, you earn 0.2. Of course, 0.2 is nothing, but this is where the power of leveraged trading comes in. You will learn at XTrade Academy that the average leverage ratio is 1:400. So, if you win by 0.2, your winnings are settled at $80. We do not need to tell you, but $80 could be your daily wage. And if you trade CFDs every day, you could actually replace your day job. CFD trading is really a lot like forex trading in that you earn from the difference between the closing and the opening price, however, the spreads are already fixed between 2 to 5 pips.

Because you profit on the rides on the price difference between the opening and closing price, it is absolutely necessary that you understand what factors can affect the price movement of an instrument. More important, you need to know when the price will have a significant increase. If you are already making money with forex trading or binary options trading, this is not something to worry about. But if you are totally new to the financial markets, make sure to study price movements and to practice predicting trends using a set of charting tools.

Learn, learn, learn!

There are many resources out there that can help you. Just do a search on Google, create a demo account through XTrade Affiliates and then practice. Do not stop until you are already earning money with the demo account, and do not invest any real money until you are already profitable in your demo account.

What assets can you trade? There are over 150 of them, which include currency pairs, indices, and commodities. The good thing about XTrade is that there are no downloads. The company has developed its own proprietary software that allows you to trade right on your browser.

But if you are like most people, you are probably wondering if XTrade is legitimate and if it isn’t a scam. Well, you would be glad to know that the company is registered in Cyprus. Trading brokers are regulated in that part of the world. The company also has five regional offices outside the country. Being regulated does give you peace of mind because your money is insured by a fiduciary agency.

For most people, this is the difference that can make THE difference.

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