Three Reasons Why CFD Is The BEST Trading Option For You (NOT What You Thought!)

Hello traders, how are you? Vladimir here from Traders Academy Club. In this video, I would like to share with you 3 reasons why CFD is the best trading option for you as a retail trader. But before we go and name the 3 reasons, I would like to ask your support and your help. If you appreciate these videos and you find them useful, please hit the like button below the video and and subscribe to the channel if you still didn't. Feel free to share this video with anyone who you believe can benefit by watching that, as it is open for the community. And thank you very much in advance, of course, to all those of you who take the time, support, and help. And also, I would like to take the opportunity and to thank ActiveTrades broker for making this video possible. And I would like to invite you to join a special unique trading group I run together with ActiveTrades Broker. To join us, just follow the link below this video in the description. Join ActiveTrades Broker, get the access to the unique trading group I run with them. And now let's begin the 3 reasons why CFD trading is the best option for you. The first Reason number three would be the lower costs and easy, fast execution. As a retail trader myself, sitting and working from the comfort of my home office, when I trade, I want low costs. I don't want to pay big. Uh, fees. I don't want the limits of getting 25,000, uh, shares, uh, or, you know, or any other, uh, crazy minimum numbers required in different financial markets. I want low cost that do not limit me to specific numbers, and I want my transactions, I want my trades to be executed Quick, here and now, fast execution at the price I'm asking. And this is one of the biggest advantages provided by the CFD trading. What is CFD trading in general? CFD trading stands for contract for difference, which is a unique agreement between you and the broker providing you these instruments. Thanks to the characteristics of this agreement, the broker allows you to have the advantage, uh, you, um, trading the CFDs. And one of them is the low cost and the easy and fast execution. Because what happens is when you buy or sell, uh, the CFD, you do not own the specific asset. So you do not own the indices or any other financial papers. You don't own the stocks in really in your account. You are not part of the company, part of the owners of the company. Okay, it is a contract between you and the broker. So you are trading the instrument without owning a real asset. Thanks to this agreement and the special characteristics of this agreement, that's why the brokers allow you to have low cost and fast execution, easy and fast execution. As a retail traders, I think this is one of the most important thing because I— what I want to buy and sell, I want to buy and sell at a specific price I want, or at least super close to the price I ask. And what happens, you know, if you go and trade in other financial markets or platforms, what happens is when you are asking to execute a trade, there is no guarantee that it will be executed at your given price. Of course, you can limit and control it up to what maximum, uh, slippage you can have, and so on and so on. But, uh, the— that's still a big disadvantage, and that's why CFD trading offers here an amazing solution of low cost and easy and fast execution. The next reason why the CFD trading is the best option for us, the retail traders, would be the easy long and short executions. So we can buy and sell any asset, any instrument, at any time. Okay, not limited only to the specific and only one direction and only limited hours. Okay, uh, so this is a very important thing because in the other financial markets and other platforms, if you want to go short, then think what it means to go really short on assets you don't have. You need to borrow the assets or to find someone that agrees, again, that you sell something you don't have, but you would be obliged to buy it back in a profit or in a loss, doesn't matter. This is your problem, but you would be obliged to buy it back. Okay, and that's not guaranteed you will find someone who would agree to make this sort of agreement and deal with you. And that's where the CFD trading comes to solve this thing. And the ease of going long and short on any financial instruments, on indices, on commodities, even on Forex and many other instruments, uh, this is, um, from my point of view, one of the biggest advantages on CFD trading. Now before I go and explain the last advantage and the last reason why CFD trading is the best option. It's very important to understand, uh, the CFD trading was seen on the last several years in a sort of a negative light. The reason for that is absolutely wrong. Well, it, it happens naturally because when someone takes a tool, okay, uh, and use it wrongly, then yeah, wrong things will come up. And that's one of the things with CFDs. The retail traders, they jump into something without understanding what it really means, the advantages and disadvantages, because every medal has 2 sides. And it's important you remember that wherever there are advantages, there might be some sort of disadvantages. So it does with CFD trading. It's not like everything only advantages. It does not exist. Nowhere in life, definitely not in trading world. So while retail traders jump in the CFD trading and that's it, that's a new thing. And then of course, without understanding what it is, yes, they could understand it wrongly. And that's why the CFD, from my point of view, and sadly because I am a big fan of CFD trading, I myself am a CFD trader. So, uh, from my point of view, it's like anything else you do— understand the advantages and disadvantages of the thing before you judge what's good and what's not. And CFD trading, for retail traders like myself, from the comfort of my home office, I think it's the— it's a brilliant solution if done properly and executed properly. So now let's talk about the last reason why CFD is the better option for us, and that would be the leverage. Leverage could be your best friend, but it could be also your worst enemy. Okay, remember what I said, every medal has 2 sides. Same about the leverage. Leverage is an amazing tool allowed by the brokers. The idea of the leverage is you can trade with much less money than you really have in your hands, okay? It's done thanks to this financial tool, or this— thanks to the agreement that the contract for difference allows. It could work in 2 sides because what happens is you borrow money. The more you borrow— if you think about it like in every loan or mortgage or anything, the more you borrow, the more you have to pay back. Same here, it's no different. The bigger the leverage you take, the more money you borrow from the broker, the faster you can make— accumulate profits or losses. Because What happens is when you borrow more money, you trade with bigger numbers, with bigger volume, with bigger lot size, okay, or trade size. And because of that, every point or every pip values more money, which means your profits or losses could accumulate faster. And this is why leverage could be an amazing advantage but also could be disadvantage, like every single tool. Remember I said that wrong tool— uh, so sorry, good tool in wrong hands could cause disaster. Imagine if you take a hammer, right, big hammer, and you take it someone and you give it to someone who never hold a hammer. Or you take it the best drill in the, in the world and you give it to someone who never use that. You know the saying, the best drill in the wrong hands could be— could cause a big hole in the, in the wrong wall. So same, uh, same here. Leverage must be used responsibly and with full understanding of the advantages and the disadvantages. If you just use leverage in order— in, in some sort of a wish or illusion of make fast money here and now, you might wake up sooner than you expect with huge loss. Now, the, the— this is very important thing to understand. You must understand leverage works in both sides, okay? It's a two-way road. Now, the good part with, with, um, leverage trading is that you cannot theoretically lose more than your capital. So this trading style fits the aggressive traders who want to risk very, very, very little with the potential of earning big. And I know many traders like that, they prefer to risk $100, $200, $500, $1,000 in order to try and to make $5,000, $10,000, $20,000, $50,000, and then they are out of the game. Okay, but again, it could come with the risk because the bigger the numbers you trade, the bigger the value of each point, which means your profits and your losses could accumulate faster. So from my point of view, the leverage is definitely one of the better reasons why CFD trading is the best option for us, the retail traders. But I will repeat once again, it must be used responsibly with understanding advantages, disadvantages, and the risk that brings to you and your trading. So that's it for this video. These are the 3 reasons why I consider CFD as the best trading option for us, the retail traders. I would like to thank you for your time watching this video and to invite you to join us in our trading family, Traders Academy Club, and enjoy the best offer we have for you, as you can see on this very image. Also, do not hesitate to ask any questions if you have below the video in the comment section. I'll do my best to reply as soon as I can and hopefully to help you. So thanks for your time once again. I wish you and yours all the very best, and I'll see you soon with more. Bye for now and good trading.