Currency (FOREX) vs Equity Trading

One of the advantage of being a CFDs Trader is to be able to trade different markets and financial products in one account. Many CFDs Traders usually stick to what they are comfortable with. Some choose to be Equity traders and others are Forex enthusiastic.

Versatile CFDs traders can switch from one product to another and find trading opportunities in different markets and thus reducing their exposure to risk.

The main different between Forex and Equities is the earning per position amount. For instance if you buy 100 CFDs of BHP it would mean that you earn $1 per every cent that it moves in your favour. But if you have the same position of 100 in a FOREX  pair like AUD/USD  you would earn $10 instead.

See below the earning per position amount.

AUD/USD

Position Size

1

10

20

30

40

50

100

150

200

Profit/loss per bit ($0.001)

0.1

1

2

3

4

5

10

15

20

BHP CFD

Position Size

10

20

30

40

50

100

150

200

Profit/loss
per cent

0.1

0.2

0.3

0.4

0.5

1

1.5

2

 

 

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CFDs - Foex, Indices, Stocks, Commodities, Bonds, Interest Rates Variable spreads from 1.2 and small 0.1 commission on Shares Visit Website
Risk warning: Your capital may be at risk. CFD trading is suitable for experienced traders and not beginners.