{"id":23450,"date":"2024-01-31T17:00:00","date_gmt":"2024-01-31T15:00:00","guid":{"rendered":"https:\/\/t4t-com-php8.wp-dev.int.theitops.net\/?p=23450"},"modified":"2024-01-30T11:25:01","modified_gmt":"2024-01-30T09:25:01","slug":"can-cfds-go-negative","status":"publish","type":"post","link":"https:\/\/www.t4trade-be.com\/ms\/can-cfds-go-negative\/","title":{"rendered":"Bolehkah CFD menjadi negatif?"},"content":{"rendered":"

The simple answer to this question is yes, CFDs can go into the negative<\/a>. However, if your broker sets the terms, negative balance protection may limit losses for retail accounts. In this article, we\u2019ll look at CFDs in a little more depth and how they can potentially go negative.<\/p>\n\n\n\n

CFDs \u2013 what are they?<\/strong><\/h2>\n\n\n\n

Contracts for Difference (CFDs) are contractual agreements between a CFD broker and a trader<\/a>. The CFD essentially gives the trader access to an underlying asset without the need to own that asset. Instead, via this agreement. The trader speculates on the price movement of that asset in an attempt to make a profit from that fluctuation.<\/p>\n\n\n\n

The asset differs depending on the CFD, providing the trader with access to a wide range of financial markets. This includes stocks, commodities, currency pairs, metals, and many more. Consequently, the ability to diversify one\u2019s trading portfolio also increases trading opportunities.<\/p>\n\n\n\n

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CFDs and leverage<\/strong><\/h2>\n\n\n\n

CFD trading has become an incredibly popular way to trade in many countries worldwide. However, this Forbes article reports that highly leveraged derivatives often come with a warning. Adverse price movements in relevant markets can lead to substantial losses for consumers.<\/p>\n\n\n\n

In fact, the same article goes on to state that around 80% of customers lose money when investing in CFDs. So why the appeal among global brokers? Well, to some degree, the use of leverage. You see, leverage is the quintessential double-edged sword<\/a> because. While it can significantly magnify losses, it can also amplify the wins.<\/p>\n\n\n\n

How does leverage work?<\/strong><\/h3>\n\n\n\n

Let\u2019s look at the core tenets of leverage to gain a better understanding of its power:<\/p>\n\n\n\n