Contract for Difference · Trade all asset classes in one account: Forex, Gold, Crypto, Stocks, Indices. Profit Long and Short without owning the underlying assets.
CFDs are "contracts for the difference in price": agreements between trader and broker to exchange the price difference of an asset between opening and closing the position, without owning the actual asset.
The advantage of CFDs is trading multiple markets in one account: Forex, Gold, Crypto, Stocks, Indices, Commodities: using Leverage, profit on both rising and falling prices (Long/Short).
CFDs (Contract for Difference) is a "speculative contract on price differences": an agreement between the trader and broker to exchange the price difference of an asset between opening and closing position, without owning the actual asset.
The advantage of CFDs is the ability to trade multiple asset classes in a single account: Forex, Gold, Crypto, Stocks, Indices: using Leverage to profit from both rising and falling prices (Long/Short).
S&P 500, Nasdaq, Dow Jones, DAX
Oil (WTI/Brent), Natural Gas, Coffee
| Feature | CFDs | Direct Investment |
|---|---|---|
| Long & Short | ✅ | ❌ (Mostly Long-only) |
| Leverage | ✅ 1:5 to 1:1000 | ❌ (typically 1:1) |
| Starting Capital | ✅ $5+ | ❌ Tens of thousands+ |
| Open/Close Speed | ✅ Instant | ⏳ T+2-3 days |
| Multi-market in single account | ✅ | ❌ |
Beginner's guide to trading CFDs across all markets via a single XM account
Open an XM account through Power of Price (IB): use your ID card + address proof. Minimum deposit from $5+
→ XM Account Opening GuideFree MT4/MT5 download: Symbol List includes Forex, Gold, BTCUSD, AAPL, US500, Oil and more
Open any asset chart → "New Order" → Buy (expecting price to rise) or Sell (expecting price to fall) → set Lot size
Stop Loss = exit point for losses / Take Profit = locked profit point: Risk 1-2% per trade
→ Risk ManagementEssential knowledge applicable to all CFDs markets: Forex, Gold, Crypto, Stocks, Indices
Use when: Expecting asset price to rise
Profit: Buy at low, close at higher price: the difference is your profit
Use when: Expecting asset price to fall
Profit: Short at high, close at lower price: the advantage of CFDs!
Instantly buy/sell at the current market price
Set order to wait until price reaches a defined level: Limit/Stop
💡 CFDs Advantage: Profit in both directions (up or down): volatile markets are opportunities. Use small capital with high leverage: but risk scales accordingly. Always use Risk Management on every trade.
CFDs are speculative contracts on price differences: an agreement between trader and broker to exchange the price difference of an asset between opening and closing position, without owning the actual asset.
CFDs: no expiration, leveraged, OTC / Futures: have expiration, traded on exchanges / Options: buy rights with premium. CFDs are popular due to ease of use, low starting capital, and no settlement requirements.
Forex, Gold/Silver/Commodities, Crypto (BTC ETH), Stocks CFDs (Apple Tesla), Indices (S&P 500 Nasdaq), Energy. XM offers 1,000+ instruments in total.
Trading CFDs through licensed offshore brokers (such as XM with ASIC/CySEC/FSC licenses) is not illegal in Thailand. However, the Thai SEC does not directly regulate offshore brokers. Choose brokers with licenses from reputable regulatory bodies.
1) ID card/Passport 2) Address proof 3) Initial deposit from $5+ 4) MT4/MT5 (free download) 5) Open account through Power of Price for special perks + free LINE VIP room access
Open XM account free + LINE VIP daily analysis + comprehensive trading courses
⚠️ CFDs trading involves risk. Investors should study before deciding.