CFD stands for contract for difference while FX is a short form for forex or foreign exchange, and both these are related to 500pips because it is a web-based platform that acts as an intermediate between a trader and a marketplace where CFD and FX products are purchased and sold without physically owning any mostly. At the stock market, these products’ price keeps fluctuating, and a buyer buys some product at a specific price and sells it when the price hikes.
This way, you can book profit by buying and selling some product which is not generally yours or present with you in physical state. Brokers like 500pips provide you with the market update every second and act as a medium between a seller and buyer to carry the trade.
What Does CFD Constitutes Of And How Does It Work?
Under CFD trades, you only have to focus on the product’s price that could be a company’s share, security, commodity, equity, or forex market. You don’t have to own any of these physically, but you will digitally have a position and a record of the purchase. So, as the product’s market price fluctuates, you can wait as long as you want before you sell the share.
500pips will keep track of your bought shares, and you can regularly keep track of the market price of your open positions and sell the products anytime. Brokers have a certain fee that you have to pay additionally whenever you sell out or close a position.
Forex Trading – What It Is And How Is It Done?
Forex CFD trading is similar to any other trading, with a slight difference and that it the products here. Forex is a collection of currency pairs. Under this section, you make a position by buying any foreign currency virtually at a specific price and then selling it when the currency is at its highest. Forex trading is preferred by those who can wait longer to enjoy higher profits.
At 500pips, you can easily buy and sell forex currencies and trade in numerous currency pairs. Trading at this platform brings you additional benefits such as modern trading tools for calculations, live updates for 24×5 and easy steps to open and close any position in real-time with zero delays.
Add Money Instantly Or Use Leverage For Trading At 500pips
It is super easy to add money into your 500pips account by several methods like wire transfer, card payments or e-wallets. The funds will be reflected in your account wallet in a matter of seconds. But sometimes, you could be short on money or time, and at such an instance, 500pips provide you additional benefit in the form of leverage. This leverage comes at a nominal timely charge, and you can pay it back when you close the position bought by leverage.
Hence, you see 500pips is a helpful CFD and FX broker that comes with several unmatched benefits.