Do you know what “Short Selling” means? iForex offers a great opportunity to you using the type of the transaction.
Fun fact about short selling:
In Netherland, the world’s first stock exchange, short selling was banned by an edict of 1610.
That edict was reiterated or strengthened again in 1621, 1630 and 1636. Short sellers were not prosecuted, but their contracts became unenforceable.
“Short Selling” is when you are selling an equity(or any kinds of financial products) without holding the product on your side. As in, with this type of transaction, you can sell a product which you don’t even have yet.
The transaction is impossible to conduct in case you are trading Equity, Indices or Bonds in an exchange market. But it becomes possible when you trade such financial instruments in a form of CFD.
CFD stands for Contract for Difference.
It is a derivative product created by some financial entities such as brokerage firms.
iForex offers CFD products, that includes Stocks, Equity Indices, Commodities, Metals and also Energies.
There are many advantages of trading CFDs, than the actual financial instruments directly on some exchange markets though, one of them is the “Short Selling” transaction.
By trading CFDs, you can even make profit from falling prices, and that is the concept of “Short Selling”.
You can also hedge your transactions on Stocks, if your stock price is falling.
“Short Selling” used to be a very limited option in the financial markets before though, now it is available for any individual traders from all over the world.
With iForex, you can start investing and take advantage of “Short Selling” by making a deposit of 100 USD.
Find out more information of iForex, and start investing in CFDs today!