All About CFD Trading Software

CFD trading software is the important technology you require to settle your
FX & CFD orders.

Learn about some of the best CFD software out there below:

Curency Movements Image

CFD Trading Software At A GlanceWhat is CFD Trading Software?

The Contract For Difference (CFD) Trading Software gives you the power to maximise your money-making potential. Computer programs can assemble, compare and analyse large amounts of data much faster than humans. Here is a CFD Trading Software guide to discuss the popularity, features and functions of these programs.

What is a CFD?

CFD stands for “Contract For Difference” and might be used to refer to anything from an FX trade to Binary Option. Each is slightly different depending on the the underlying tradable instrument.

Basically, a CFD broker constructs a derivatives agreement that will pay you money if you are successful in predicting an asset price movement. The underlying assets include commodities, currencies, stocks, bonds and indices. If you think you can predict their price movements, you can make money.

Brokers will often offer CFDs as a types of leveraged product. Which means you can buy CFDs beyond the funds available in your account. Brokers will lend you money to invest provided you have adequate funds deposited in your trading account.

Why is CFD Trading Popular?

Billionaires make a lot of money buying and selling valuable assets. Some have made fortunes on a singular trade. The Australian Securities Exchange (ASX) offers a few stocks, but there are many more assets around the world that are traded every day. Some Australians might become bored trading merely on the ASX. Here are the reasons why CFD Trading is trending:

  • Anytime – That’s right trade any time of the day 24/5.
  • Anywhere – Thanks to tech and the web, you can trade from bed if you so desire?
  • Extra Income – Work by day and trade at night to supplement your salary.
  • Flexibility – You can take a break from trading whenever you like. You can also revisit trading at any time too.
  • Freedom – You don’t need to be confined to your office or desk. You just need a Wifi connection.
  • Variety – There are so many different instruments to trade from equities to oil.

If you Trade CFDs then you have access to many of the most popular stocks from around the world: United States, England, China, Japan and so forth. If you can find a CFD broker offering the exotic asset, then you can make money off it.

Furthermore, regular traders can make the same bet as the professionals with CFD Trading Software. Traders can translate their knowledge, intelligence and determination into a money-making enterprise. They can even use their smart phones to set up, execute and follow these trades.

Lastly, it is very easy to sign up with a broker in order to start trading CFDs. When you commence CFD trading, all you need is a trading account with the broker and to choose your desired trading platform and trading products.

Dollar Yen CFD Trading Software StrategiesWhat is the Dollar Yen Carry Trade?

An example of the new avenues available with the CFD is the “Dollar Yen Carry Trade.” Each currency is meant to reflect the productivity of each nation. At the same time, currencies also share the common function of being money. The traditional “Dollar Yen Carry Trade” involves the United States Dollar (USD) and Japanese Yen (JPY). Each nation has its own interest rate policy. Thus, experienced traders can engage in something called arbitrage with the Dollar and Yen.

What is arbitrage?

Arbitrage is a guaranteed profit made from the price differences in similar assets sold in different markets. If you see an orange sold for $1 at one store and $4 at another, then you could easily buy from one store and sell to the other store to earn an automatic profit of $3. Likewise, traders buy one currency and sell the other to make arbitrage profits via the “Dollar Yen Carry Trade.”

Increased Trade ComplexityTrade Mining Companies With CFDs Software

Typically, most CFD traders concentrate on one specific asset. If you struggle or get bored, you can always diversify your trades with CFD. The beauty of CFD Trading is the variety of asset trades, types or techniques available. Commodities are one of the primary asset classes traded. Commodities are the raw materials used for production: gold, oil, diamonds, wheat and others. Australia has numerous mines, making it an important player in the global commodities market.

Experts in Australian mining can make profits using a variety of CFDs, including the gold commodity and gold mining stocks. This creates more complicated stacked trades. You can even use one trade to hedge against another. Perhaps, you set up a trade for a week or so. During that time period, the Australian mining industry might issue a report changing your views. You could set up another CFD trade to hedge against potential losses in your first trade.

Professionals Use CFD Trading Software

Every second, asset prices are changing and being streamed somewhere. Besides normal trading hours, some exchanges have opened up after-hours trading. Asset price streams will be run across most of your Australian CFD broker websites.

Professional CFDs Brokers
Yet, most professional CFD traders don’t really care about all of the asset prices. They might be concentrating on 3 or 4 particular assets. In order to get the exact information they want, when they want it, they use advanced CFD Trading Software.

How Does CFD Trading Software Work?CFD Software Interface

Naturally, computers can crunch numbers much faster than the human brain. From the time that an asset price is displayed, it takes time for the eyes to read the information. Then, the brain must analyse the data. The CFD Trading Software speeds up the following process:

  • Read
  • Identify
  • Aggregate
  • Compare
  • Analyze
  • Chart
  • Report
  • Signal
  • Execute

You can configure the CFD Trading Software to handle all of these functions or just the ones you want for each asset. Let us say you set your CFD Trading Software to read, chart and signal if the gold price reaches a certain level. The software will collect the spot price and then analyse whether your conditions have been met. When the gold price hits that level, the software will signal your cell phone with a “Green Light.” Some programs even automatically execute the trade.

CFD Trading Software Reveals Discrepancies

Just as you might not want to ride a horse and cart to work, you might not want to conduct serious CFD trading without using the most advanced technology. You have a busy life and CFD Trading Software allows you to complete all of your duties, while making some money on the side. Configure your software any way you like. You might prefer certain technical analysis charts or graphs. Your CFD Trading Software can compare the asset price trend to these technical analytics and tell you what percentage chances there is a match. The most advanced CFD Trading Software delivers real-time information to increase your odds for success.