Choosing a Market for CFD Trading

This course builds on the basics of CFD trading by helping you explore the different markets available. You’ll learn how CFDs differ from traditional trading, the risks and benefits involved, and how to start choosing a market for CFD trading that suits your style. Each short lesson includes practical examples and ends with a quiz to reinforce your learning.

Course Benefits

  • Short, easy-to-digest lessons
  • Practical, interactive examples
  • Charts and graphics for visual learning
  • Free demo trading account suggestions
  • 10-question quiz to test your understanding

Lesson 1: What Markets Can You Trade with CFDs (5 min)

In this lesson, you’ll get an overview of the main asset classes available for CFD trading, including shares, indices, forex, and commodities. You’ll learn what makes each market unique, and how they behave under different economic conditions.

Lesson 2: Trading CFDs on Shares (8 min)

Shares are one of the most popular CFD markets. You’ll discover how share CFDs work, what influences share prices, and the role of corporate news and earnings in market movement. Key terms like dividends and short-selling will be explained.

Lesson 3: Trading CFDs on Stock Indices (10 min)

Stock indices like the FTSE 100 or S&P 500 represent groups of shares. In this lesson, you’ll learn how index CFDs are priced, how economic reports and global events impact them, and why many traders use them to gauge broader market sentiment.

Lesson 4: Trading CFDs on Forex (7 min)

The foreign exchange market is open 24 hours a day and is highly liquid. This lesson introduces major and minor currency pairs, what moves exchange rates, and the benefits and risks of leveraged forex CFD trading.

Lesson 5: Trading CFDs on Commodities (8 min)

Commodity CFDs let you trade on markets like gold, oil, and natural gas without owning the physical assets. You’ll learn what drives commodity prices, the role of supply and demand, and how seasonality or geopolitics can affect volatility.

Lesson 6: Choosing a Market (8 min)

After exploring each market type, this lesson helps you decide which might suit your trading approach. When choosing a market for CFD trading, consider the following:

  • Dealing Times: When is the market open, and can you trade at those hours?
  • Volatility: How much does the price typically move, and are you comfortable with that level of risk?
  • Costs: What are the spreads, margin requirements, and minimum position sizes?

By evaluating your availability, risk tolerance, and capital, you’ll be better equipped to focus on the most suitable market.

Final Quiz: Test Your Knowledge

Put your learning to the test with 10 multiple-choice questions based on the course content. This quiz will help reinforce key concepts and highlight areas you may want to review.

Example Question: Which factor is most likely to influence the price of a stock index?

  • A. Central bank interest rate decisions
  • B. Individual company earnings only
  • C. Weather patterns
  • D. Local retail sales

Ready to start trading? Practice what you’ve learned about choosing a market for CFD trading with a free demo account from a regulated provider. Always remember: CFD trading carries risk, and you should never trade more than you can afford to lose.