facebookWhat is the difference between margin account and contract for difference (cfd) account ? Which is better for short term trading? - Seedly

What is the difference between margin account and contract for difference (cfd) account ? Which is better for short term trading?

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  • if you want to trade is better to have a margin account vs cash account
  • margin account allow u to borrow $$$ from brokerage, u dont have time to transfer money to your account when u are trading.
  • CFD allow u to buy a stock at a price of 10%. Eg. If a stock price is $100, u just have to pay $10.
  • However, u must watch out the maintenance margin to avoid margin call.
  • CFD is a double edged sword
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