Speculating with CFDs
Typically short-term, speculative trades are generally coupled to major market events such as central bank interest-rate decisions and company results.
Traders want to capitalize quickly through a timely entry into trades that will see prices take off on the news, and then a timely exit with their profits intact.
CFDs are an ideal investment tool for speculation because they have the advantage of leverage that allows you to maximise exposure whilst minimizing investment. Using leverage allows you to increase your potential profits and losses so you should always employ stop losses and other risk-management techniques.
In this section we will describe some typically speculative opportunities and explain how to grasp them:
Speculative Trading Opportunities
Implementing Speculative Trades