Vestle is a brand of the ICFD trading company, an organization that has been involved in currency trading for more than 20 years. Using its knowledge of the markets, as well as its interaction with customers, Vestle currency trading is customized to meet all of its client's needs. Vestle is focusing on providing customers with contracts for differences (CFDs) which are designed to eliminate many of the hassles associated with investing.
What are contracts for differences?
A contract for difference is a security that tracks the movements of another asset. For example, a contract for difference representing the EUR/USD tracks the price changes in the EUR/USD currency pair
. If the EUR/USD currency pair increases by 1%, a CFD on EUR/USD will also increase by 1%. You are only responsible for the difference in the price of the CFD from the time you purchase it to the time you sell it and vice versa. What are the benefits of a CFD?
There are several benefits to trading contracts for differences
. One of the most glaring benefits is that you do not need to post all of the capital needed to trade a product. A CFD uses margin and leverage which allows you to increase the returns that you invest. You also do not need to be concerned with many of the nuances that are associated with trading. For example, if you trade spot currencies, after two business days, you need to deliver the physical currency unless you are willing to roll your spot trade to a forward trade. This would require that your broker performs another transaction on your behalf, where the charge for rolling the currency pair would be imbedded in the bid/offer spread. Margin and leverage
CFDs provide leverage that can enhance your returns and allow you to trade instruments for pennies on the dollar. This is most prevalent when trading shares. If you want to purchase Facebook shares, using a stock brokerage account, you would need to post the total value of the share price to buy Facebook stock. This means that if shares cost $200 per share, with a stockbroker you would need at least $200 to buy one share. If all you are planning to trade is $200, your entire portfolio would be made up of 1-Facebook share. Alternatively, you could purchase a Facebook CFD. The leverage that Vestle offers will allow you to purchase a Facebook CFD using less capital. For example, with leverage of 5:1, you would only need to post $40 to purchase 1-share of Facebook stock.CFDs on ETFsVestle also offers CFDs on exchange traded funds (ETFs).
An ETF is a product that holds other securities. For example, an ETF on the S&P 500 index holds all the stocks that make up the S&P 500 index. There are also ETFs on specific sectors. If you are interested in taking a position that benefits as the banking sector rises, you can purchase a CFD on the XLF (financial services ETF). The broad range of CFD products that are offered by Vestle allows you to build a diversified portfolio using a product that is hassle-free and provides robust leverage.