Trading an ETF with derivatives
Trading ETFs is a great way to get exposure to shorter-term price movements within certain sectors. When you trade ETFs with CFDs, you can use leverage to get amplified exposure to the ETF of your choice.
As a result, CFDs enable you to open a position for just a fraction of the cost of traditional investing. This means that, while leverage can magnify your profits, it can also magnify your losses. This is because loss is calculated based on the full size of the position rather than the cost of opening that position and can far outweigh any initial deposit, so it is important to create a risk management strategy before you trade.
