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1. HIGH LEVERAGE Leverage allows trader to trade with only a percentage of capital is necessary to open a position and get exposure to a much larger sum of money in the trade.
2. YOU ARE ABLE TO GO LONG OR SHORT trade on the price of going down as well as going up, means you can try and
benefit from selling opportunities (shorting) as well as buying opportunities.
3. VARIETY OF TRADING INSTRUMENTS CFD allows traders to take advantage on the price differences without owning the assets.
Imagine, you can buy and sell oil barrel without owning an oil barrel in your house.
Thus, many investors use CFDs as a way of hedging their existing portfolios through periods of short-term volatility.