Trade ETF CFDs – with an experienced and regulated broker! ETFs (Exchange Traded Funds) allow traders to track the performance of specific indices, bonds, or a group of assets.
- Day Range
- 6H Trend
What is an ETF?
An ETF (Exchange-Traded Fund) is a financial instrument consisting of a collection of securities* (such as stocks, bonds, or commodities), and usually tracking the performance of an index. ETFs can cover a particular industry, reflecting its performance throughout each trading session and at any given time.
What are securities?
Securities are fungible, negotiable financial instruments that hold some type of monetary value and represent a type of ownership. People trade these securities in the form of various financial instruments that fluctuate based on supply and demand and other variables.
ETF trading, a popular choice amongst investors
Trading CFDs on ETFs has gained popularity amongst investors worldwide due to their versatility. Exchange-traded funds let you invest in more than one market at the same time, with the securities combined into ETFs usually falling into the same category, such as energy, technology, agriculture, and many others.
So, if you are interested in a specific industry, you can trade stocks, commodities, and bonds from it altogether as ETFs.
Factors influencing ETF prices
As ETFs are complex financial instruments and cover multiple markets, their potential influencing factors grow in number as well (the below list is non-exhaustive):
Market-related ETF News
Important political developments
Interest Rate Decisions- Bank of England MPC Announcements, Fed Interest rate Decisions
Consumer & producer preferences – CPI or PPI reports
Why trade CFDs on ETFs?
ETF trading can be used for hedging and for investing in your favorite market or industry. You can also expand your trading opportunities from various sectors and diversify your portfolio.
But what about CFDs on ETFs?
ETF trading in the form of CFDs means investing in the exchange-traded fund’s price, as CFD instruments reflect the market value of financial instruments.
When trading CFDs on ETFs, you can open trades in any direction, depending on what you expect will happen (based on your assessment of the influencing factors): prices to drop or to increase. If you believe that the price will decrease, you can open a short position (SELL). If you believe the ETF price will increase, you can open a long position (BUY).
Plus, you can use leverage to open larger positions with smaller investments, but also with increased risks of loss.
How to trade CFDs on ETFs on CAPEX.com
You can open a CFD on ETF position with CAPEX.com through the device of your choice, be it a smartphone, PC, or tablet.
Log in to your account or create account
Go to the ETF section and choose your favorite instrument
Set your trade size
Choose direction (Buy or Sell) based on your assessment of the influencing factors
Place your trade!
You find it hard to keep a close eye on your trades all the time? Advanced tools are available, especially for this: you can set automatic orders like Take Profit and Stop Loss to manage multiple trades and keep your risks under control!
Ready to give us a try?
Trading conditions for CFDs on ETFs
* Please note that CAPEX.com, operated by JME Financial Services (Pty), is not liable for any fees or hidden costs charged by your bank or online payment provider.
Keep in mind that trading hours may vary based on the specifics of every instrument.
For more details, check our dedicated Trading Conditions.