Contracts for difference are another option used by traders. One of the main advantages is that these contracts, unlike options and futures, do not have an expiration date.
On the other hand, they enjoy a very interesting feature: leverage.
With leveraged trading you can qualify for much more significant profits. But be careful, you will also be exposing yourself to the risk of suffering greater losses.
By not having an end date set in advance, CFDs serve us both for long and short positions. In the same way, these operations will also allow us to take advantage when the stock market is down.
How cons, to say that these investments have a certain cost of hiring and that in addition, commissions are applied to each day that the contract is active.
Also, comment that in Europe binary options are prohibited and CFDs have limited their leverage.
Finally we are going to talk to you about the well-known, and with more tradition, Credit operations. This method can only be used for securities that are included in the Spanish IBEX35 index.
Credit operations can be due in a specified time or without. There are other so-called intraday operations that allow you to invest money that you do not have but have one day to expire.
The operation is identical to intraday operations except that it can have an expiration date of 3 months. For this type of operations you can only count 20% or 25% of the total investment.
When the stock market is down, credit operations are an excellent alternative to benefit. The Ibex-35 is the Spanish index that brings together the shares of the most relevant and strongest companies in the markets.
If the values fall, you can take advantage of credit operations to invest downwards and obtain higher returns when the situation begins to normalize and prices begin to rise again.
As you can see, there are many options available to invest in the Stock Market with the markets down, in this case, and explore your possibilities when investing.