Before we move on to our assessment on Module 01, let’s have a short review.
During Module 01 we have learned that:
- a CFD is contract for difference
- you can trade CFDs as easily as you trade shares because the price of a CFD mirrors the price of the actual share
- CFDs are much simpler and easier to understand and to trade compared to other derivatives such as options and warrants
- you can trade either long or short with CFDs
- there are costs involved with holding CFDs
- you can consider CFDs as a tool to diversify your existing investment portfolio