Concept of CFDS: The CFDS trading market is one of the largest financial product markets in the world, with an average daily trading volume of $65,438 +0.5-2 trillion, which is 30 times that of the US stock market and 600 times that of China stock market. Contract spread trading refers to a form of financial securities, which is mainly set up for investors interested in stocks, indexes and commodities. CFDS is a very simple derivative, which tries to copy the norms of financial trade. Therefore, it is a potential product without the economic performance of the physical trade commodity Maxgain, which brings a lot of market transactions to customers, and it is convenient and does not need to really invest in real commission fees. Because the benefits of this leverage are provided to customers, customers can use our facilities to buy and sell some stocks, indexes, commodities and futures. Just like a real sale, the profit or loss of a transaction depends on the difference between the price you buy and the price you sell.

Unlike real transactions, contracts for differences provide short-term flexible transactions. The traditional short-term selling strategy is expensive and complicated, but it is obviously a special preferential treatment for some stocks and indexes. CFDS (Contract Price Difference Trading) is extremely direct, which reflects the buying and selling of basic tools.

Take our CFDS (Contract Price Difference Trading) stock as an example. Under the dividend statement, the unilateral position of the account will have the effect of distributing or deducting cash. In the unilateral positions with multiple products, the interest will be allocated or deducted on a daily basis. Non-futures-based contracts for differences (CFDS) can be traded freely in the spot market and will not expire.

Margin trading: through the principle of capital leverage, the index trading can be multiplied by signing a contract to buy and sell spot index trading and paying a certain percentage of trading margin. If you have $2,000 in a margin account with a leverage ratio of 1:300, you can buy and sell $600,000 at most, because you only need to show 0.5% of the purchase price as a guarantee in your account, in other words, you have the purchasing power to buy $600,000. The trading mechanism of stock index spot trading also has its particularity, which is called active quotation and passive matching trading. The conditions for spot trading of stocks are that there are both buying at a certain price and selling at a certain price or lower, and the price can be traded first, or the current stock price is determined by trading. For spot trading of stock index, this is one of the necessary conditions, and it is also the necessary condition for the index to pass this point at this time, that is, the buying and selling orders are set by investors actively, and the trading is determined by the actual operation of the market index, that is, passive trading, and the trading orders also follow the rules of price priority and time priority.

Spread: In the index trading market, the buying price and selling price are usually quoted at the same time. The difference between the buying price and the selling price is called the price difference. There is no delivery period for stock index spot, and buyers and sellers can decide when to trade in reverse, which is consistent with stock spot and different from stock index futures. So it can be covered without time limit.

Similarities and differences between spot stock index trading and stock index futures trading

Similarities and differences between spot stock index trading and stock index futures trading;

From the comparison of the above three varieties, we can see that the spot stock index not only has the advantages of the other two varieties, but also avoids their risks.

The significance of spot trading of stock index to the development of China stock market lies in:

1, which is helpful to cultivate large institutional investors;

2. Suitable for small and medium investors to make indexes;

3. It provides great opportunities for stock exchanges and securities institutions to expand their business and enhance their competitiveness;

4. Conducive to standardizing the market order and curbing excessive speculation in evil villages.