In our previous video, we discussed what contracts for difference (CFDs) are and how they work. In this video, Simon Brown explains how CFDs can be used in a trading portfolio. While ordinary share investments require time to be profitable, CFDs can be used as short-term trading instruments or held for longer periods, depending on your unique trading strategy. Your shorter-term trades can form part of your portfolio construction, along with your long-term share investments. They allow you to increase your exposure without needing a vast amount of additional capital.
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