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Having the ability to trade multiple products across a wide variety of assets classes makes strategy building more efficient. Vestle's online trading platform features many contracts for differences (CFDs) which allows investors to trade using many strategies with many financial instruments.

Contract for Differences

Whether you are a retail investor or portfolio manager, it is important to understand the pro's and cons of trading specific products.  Certain instruments, like contracts for differences (CFDs), allow investors to focus on direction as opposed to income investing.  A contract for difference is an instrument that accurately tracks another instrument but does not require a capital outlay equal to the value of the instrument.

For example, if you where to purchase Apple shares, when the price was $180, you would need to have at least $180 in your account to participate in share investing. Contracts for differences are instruments that leverage your capital while allowing you to speculate on the change in a given asset price. If an outsized move in Apple shares is 10% on any given day, then to buy 1-CFD you would only be required to post 10% of the value of the shares. Brokers like Vestle have a fixed leverage ratio that they require for you to trade a CFD.

Contracts for differences are used to speculate on the direction of currencies, commodities, indices, and shares. Vestle additionally offers CFDs on sectors of the equity markets. These equity products called ETFs (exchange traded funds), track the direction of a specific sector, such as the financial sector or the energy sector.  

Strategies

A wide variety of financial instruments allows you to take advantage of market moving scenarios. You can follow economic events throughout the week using Vestle's economic calendar. When new information becomes available, it can alter the direction of a CFD. For example, the weekly energy inventory report, is a market moving event for crude oil CFDs. In addition to fundamental events that drive market changes, technical analysis of past prices can also provide a guide to the future direction of an asset.

Education

Learning how to trade takes time and patience, but it can be a potentially rewarding experience that can last you a life time. Before you begin to risk capital, you should take the time to look at Vestle's education section. The information provided touches on technical analysis. This type of analysis uses past price action to attempt to predict future price movements.

Use a Broker You Trust

Vestle, formerly known as iFOREX has been a leader in the CFD and forex industry for the past 20-years. They provide a state of the art platform with a brand name you can trust. Vestle offers a web-based browser platform along with a mobile platform for traders who are on the go. The wide variety of CFDs offered by Vestle will allow you to use several strategies and diversify your assets wisely.