VGM | Online Trading Platform

A CFD (contract for difference) allows you to trade on the price movement of an asset, without buying the underlying asset. On VGM , you can trade CFDs with:
High leverage — Leverage allows you to open larger positions with a smaller balance in your trading account. The higher the leverage, the less money you need.
Tight spreads — The spread is the difference between the buy price and sell price. The tighter the spread, the lower the cost to enter the market.

Things to keep in mind when trading CFDs

CFDs are traded on margin

The term ‘margin’ refers to the deposit needed to open a leveraged position, which is a position larger than your capital investment and leads to increased market exposure. Use our margin calculator to calculate the margin required to increase your market exposure (the market value of your position) on Velos Global Markets's CFD trading platforms.

CFD trading features on Velos Global Markets

01 Stop loss

With stop loss, you minimise potential losses by setting the price at which you want the position to close in case the market moves against you. When the current market price surpasses this level, your trade will be closed automatically.

02 Stop Loss with Crash/Boom/Range Break Indices

Crash/Boom/Range Break indices are synthetic indices offered by certain brokers. They have predefined price ranges and can be volatile. When trading these indices, you can set stop-loss orders specific to these instruments to manage risk. The stop-loss level triggers an automatic closure of the position if the index reaches that price level.

03 Stop Out

Stop out refers to a situation where a trader's account equity falls below a certain threshold, typically due to a series of losing trades or insufficient margin. When the account hits the stop-out level, the broker may liquidate the trader's positions to prevent further losses and protect both the trader and the broker from excessive risk exposure.

04 Margin Call

A margin call occurs when the account equity drops below the required margin level. It is a notification from the broker to deposit additional funds into the trading account to maintain the minimum margin requirements. Failure to meet the margin call may result in position liquidation or the stop-out level being triggered.

05 Swap Rates (Overnight Funding)

Swap rates, also known as overnight funding or rollover fees, are interest payments or charges incurred for holding positions overnight in the forex and CFD markets. These rates reflect the interest rate differentials between the two currencies involved in the trade. Depending on the direction and type of the position (long or short), swap rates can either be positive (earning interest) or negative (paying interest).

CFD trading in MT5 offers several advantages, including leverage, the ability to trade both long and short positions, and access to a wide range of markets. It allows you to take advantage of market opportunities, hedge your existing positions, and diversify your trading portfolio.

It's important to note that CFD trading involves risks, including the potential for losses that exceed your initial investment. It is recommended to have a good understanding of CFD trading principles, risk management techniques, and market analysis before engaging in this form of trading.