Contract for Difference, also known as “CFD”, was developed by Brian Keelan and Jon Wood from UBS Warburg in the early 1990s. Initially, the purpose of the CFDs was to be used by hedge funds and large institutional investors as a way to hedge exposure to stocks. CFDs were good for this as they didn’t require huge margins. Furthermore, it was much easier to handle the CFDs logistically as no physical shares were involved.
It wasn’t until the late 1990s that the CFD trading was introduced to retail traders as well. Gerrard & National Intercommodities was the first company to offer CFD trading to its customers. Back then it was still a new instrument and only innovative and risk-taking platforms were offering them. After IG Markets and CMC Markets also started to adopt CFDs, the instrument became really popular.
Much like any other form of trading, CFD trading can be extremely risky too. However, that risk is usually under your control as a trader. You can use leverage to hold more value in your position than you contribute. That means that you can put up $100 and have a position open for $100,000. While your gains in such case are multiplied, you can completely lose out much faster too. Therefore, the riskiness of CFD trading can be controlled through leverage. CFDs, however, remain speculative instruments as many traders around the world use them to speculate on prices of different assets.
Geordie Keelan is the successor of finance magnate Brian Keelan, the fore founder of CFD. Geordie is an experienced specialist constantly innovating and creating variants on the CFD instrument. He is the mind behind Cropean Trade. Combining the best practices from old with the new, Cropean Trade aims to rewrite it’s legacy by bringing CFDs to greater heights with technology. Geordie believes that with Cropean‘s unique and specialized understanding of trading methodologies and artificial intelligence software, Cropean Trade will be the flexible, powerful wealth generation platform in the world.
Cropean Trade Advantages
Profitable In Rising and Falling Markets
There’s a lot of flexibility Cropean Trade have to offer to the traders. At Cropean Trade, you’ll see that you have the ability to go short or long. This means that you can bet for the price of a certain asset to go down or up. When you purchase an asset directly, you are investing in its future value and if its price goes down, so will the value of your holdings. With CFDs, however, you can bet that the price of the asset will go down in the future.
Flexibility from Multiple Financial Products
It’s easier for brokers to offer CFDs for different markets on one platform. To purchase the assets directly, you would probably have to resort to a few different platforms, but Cropean Trade can give you instant access to shares, indices, and commodities. Since purchasing a CFD follows the underlying market directly, you won’t even feel any difference. For example, if you buy a Microsoft share CFD, it will be just like owning Microsoft share directly, without dividend payments or shareholder privileges.
150X Leverage & Margin
Cropean Trade’s trading volume and growing database gives it trading margins and leverage to trade positions of up to 150 times of its capital.
For Cropean, hedging refers to the practice of taking a position to offset any risks by assuming a position in an opposing investment. We setup our CFDs to lock in winning positions of our trades.