XTrade Appoints Cristiano Ronaldo as Its Official Ambassador
A Contract of Difference (CFD) is, in simple terms, an agreement between two different parties to exchange the difference between the opening and closing prices of a contract. As a derivatives product which allows traders to trade on live market price movements, CFDs enable traders to make a profit without the need to actually take ownership of the underlying instrument of the contract.
How CFD Trading Works
CFD trading is done mainly by speculating on the future movement of market prices. This can be done regardless of whether the underlying markets are in a position which is increasing or declining. Traders have the option to sell, allowing them to profit from decreasing prices. On the other hand, traders who hedge their portfolio can offset any potential value loss of their physical investments. With a range of over 10,000 various markets to trade, CFD gives traders exposure to markets that previously, they were unable to gain access to.
CFD and Forex trading platforms are becoming more and more popular amongst some high-profile celebrities. There are many reasons as to why a celebrity might choose online trading – for one, trading online is a smart way of increasing their riches even further. When compared with traditional stock market trading, CFD trading is often seen as the preferred choice – there is no stamp duty to pay on a CFD due to the fact that the trader does not need to physically own the underlying asset. It is because of these benefits and the newfound availability of trading platforms that celebrities are amongst a wide range of people worldwide who are realising the potential financial benefits of trading CFD and Forex online.
Along with that, using a margin to trade is one of the most significant benefits of CFD trading, giving traders ‘leverage’. This means that it is entirely possible for traders to trade without having to put down the full value of a position, providing them with the opportunity to invest their money further as it isn’t tied up in a single transaction.
In recent news, sporting superstar Cristiano Ronaldo has recently collaborated with CFD brokerage XTrade in a deal that sees the footballer become official ambassador for the XTrade brand. This is huge news for the trading world – a household name as the new face of XTrade means a significant increase in global brand exposure as well as the generation of new interest from Ronaldo’s fans and followers. Regarding the collaboration, the Real Madrid player said: ‘To be the best, you need the best. That is why I have chosen to partner with XTrade, one of the world’s leading digital trading platforms. And there is no easy way to become the world’s best. The only way is through perseverance, practice, and more practice – until perfection.’
— Cristiano Ronaldo (@Cristiano) April 4, 2016
Celebrity support of online trading goes a long way in helping platforms such as XTrade increase their appeal when it comes to the general public. For decades, Forex trading has been hugely dominated by investment banking and other financial firms, and only recently became publically available to all. XTrade in particular hope that this partnership will help to change the minds of members of the public regarding CFD trading.