What is Olymp Trade?
Olymp Trade is an online investing and trading platform. It allows you to trade in several tools like Fixed Time Trade, CFDs, etc.
It has an excellent trading platform and offers good conditions and profits.
Olymp Trade is one of the biggest platforms in terms of active clients and one of the most known all over the world.
Learn more about Olymp Trade, or open a Free Demo Account to test the platform on the following link: https://thebinaryoptionsblog.com/olymp-trade/
It offers a Demo account with U$ 10.000.
Deposits start at U$ 10, and a minimum trade from only U$ 1.
In this post, we will be focused on the Contracts For Difference or CFDs.
What is CFD (Contracts For Difference)?
A CFD is an investment tool that allows investors to profit from price movement without owning the underlying asset.
It’s calculated by the asset’s movement between trade entry and exit (price change) without consideration of the asset’s underlying value.
An agreement between an investor and a broker (in this case Olymp Trade) to exchange the difference in the value of a financial product between the time the contract opens and closes.
An investor never actually owns the underlying asset.
In only receives revenue based on the price change of that asset.
Benefits of CFDs on Olymp Trade
Trading Forex CFDs on the Olymp Trade platform provides traders great advantages:
1. No Need to Take/Make Delivery of the Asset
Since most traders aren’t interested in holding a particular asset permanently, they can trade more easily on only the value of an asset.
This reduces transaction costs and hassle.
2. Make Profits on Downward Movement of Markets Without Owning the Asset
The ability to profit off of downward movements of the markets is possible with CFDs without actually having to own the asset to “short” it and without the need to buy it at the quoted “short” price or time.
You can make significant profits even when the markets are going down.
3. Better Leverage System with Olymp Trade’s Multipliers
Using the Olymp Trade multiplier system, traders can enter CFDs at up to 500 times the amount of their investment.
This makes the trade more profitable.
Additionally, because the multiplier doesn’t function like typical leverage, traders are only risking their invested amount and not the borrowed (leveraged) amount.
You enter a trade for $100 USD of your own money. Olymp Trade gives you a multiplier of 500x that amount. This way you will make 500 times the profit off a correct prediction on the price movement.
In this case, even a small movement of only 1% is equal to 500%.
Meaning, a $500 USD profit for the trader if he makes the correct prediction.
But if the price moves in the wrong direction, you only stand to lose your invested amount of $100 USD.
And you can always exit the position before your $100 USD is lost.
By taking advantage of the Stop Loss function of the platform.
This tool grants less risk than with the spot market.
Trading CFDs with Olymp Trade: Conclusion
There are many different ways to trade in the Olymp Trade Platform besides CFD trading.
This is especially true with Forex, which has variants such as spread betting, digital options, and more.
However, the advantages of utilizing CFDs are pretty clear in comparison with other Forex trading methods.
It is easy to see why CFDs are so popular in emerging trading markets like Forex trading in India, Malaysia, Indonesia, Africa, and South America.
With only a small deposit of $10 USD, traders can take advantage of the OlympTrade multipliers to make significant profits with reduced risk.
Try also the Fixed Time Trades, which has been one of the most growing instruments since 2008, and Olymp Trade together with IQ Option are the 2 giants in this market.
For more information get in contact with us at https://thebinaryoptionsblog.com/