Beware Very Low CFD Margins

Why shouldn't you regard 'low margin requirements' being flaunted as a selling point by some CFD providers? http://www.contracts-for-difference.com/Low-margins.html A characteristic of CFDs is that they have lower margin requirements than other types of leveraged vehicles. Gearing (leverage) is the degree to which an investor is able to make use of borrowed money.

Just keep this in mind: The lender (contracts for difference provider) is focused on maximums whereas the borrower (you!) should be concerned with minimums - borrowing as little as you can but still getting bang for your buck.

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Education

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• margin trading
• gearing cfds
• leverage cfds
• cfd broker
• financial trading
• borrowing
• day trading
• stock markets