Forex CFD trade
When you trade forex CFDs, you’re agreeing to exchange the difference in the price of a position from the point at which it is opened up until it is closed. To open this position, you’ll pay a small margin upfront to gain exposure to the larger position. However, this means your losses as well as profits can far outweigh your deposit amount. CFD prices are displayed in the same way as a regular forex pair’s quote price – for example 1.31425.
Plus, you’ll be able to take a position on prices rising by going long, as well as falling by going short. Standard forex CFDs are worth 100,000 units of the first named currency in the pair, while mini forex CFDs are worth just 10,000 units of the same. CFDs are liable to capital gains tax, but you can offset your losses against profits for tax purposes.2
