WHAT ARE FFDS?

FFDs (Futures for Difference) are similar to CFDs, but are contracts for difference for commodities and indices. Trading FFDs is similar to trading CFDs, the main difference being that the rates for FFDs follow standardised futures contracts, where the duration and the contract size of the underlying are fixed.

To trade FFDs a security deposit is required - the so called margin - which must be deposited for each transaction. The margin for FFDs usually lies between 1% and 50%. As the investor only has to deposit a (small) proportion of the actual volume of the transaction, this creates the so-called leverage effect. For example, with leverage of 20:1 an investor can speculate with 100,000 Euros and must deposit only 5,000 Euros margin. A higher level of leverage does, however, hold a degree of risk, as not only profits but also losses will be based on the full amount of the transaction.

How leverage works

Advantages of FFD-Trading:

• Diverse range of commodity and index underlyings
• Possibility to trade on rising and falling prices
• FFDs reflect the changes in the rate of the underlying to 100%
• No stock exchange charges or external transaction fees

Software for online trading with forex, CFDs and commodities

To trade forex, CFDs and commodities with the FXdirekt Bank it is necessary to install the FEXtrader Pro® trading software. The software provides the trading interface. Further details about FEXtrader Pro®