CFDs offer the ability to trade stocks after hours

CFDs offer the ability to trade stocks after hours

One of my favorite benefits of trading the contract for difference market is that it gives you the ability to trade stocks after hours. Remember, the markets are based upon the underlying movement of price, and the market doesn’t necessarily need the stock market to be moving. It’s based upon the expectation of price by those involved in the CFD market.

For example, if you are trading a US-based stock, you can trade during US hours only if you are trading through the actual Stock exchange. However, if you are trading through the CFD brokerage firm, quite often you can trade 24 hours. When you look at a stock chart, there are a lot of gaps, both higher and lower. By trading through the CFD market, you have the ability to take advantage of fundamental news “overnight.” What I mean by this is that in the stock market you are very likely to see headlines cross the wires overnight involving specific companies. If you are trading through the New York Stock Exchange for example, you need to wait until trading opens again the next day. However, with the CFD market you can take advantage of the news immediately.

On the attached chart, I have Facebook shown on the 4-hour timeframe. You can see clearly that Facebook has gapped several times over the last several sessions, causing risk to the underlying portfolio of people who hold that stock. I believe that the market is much easier to deal with when you can jump in and out 24 hours at a time, as we have the ability to be much more nimble. In general, CFD markets make a much more flexible way to base your global trading upon, and that’s why we love them.

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