Many CFD investors fail to realize the importance of having the right platform. I know this because I was one of them once, and it cost me dearly. There are many platforms out there promising to make you rich in no time, but they don’t tell you the risks that come with using them. That’s why I decided to write this guide on how to start making money with Amazon CFD by investing $200 each week as we can all relate to this amount better than $200 million! Find out how to make $200 each week with Amazon CFD
Basics of CFD trading
First things first, before you consider trading CFDs on Amazon stock (or any other asset), you should get a good grasp of what it is. Trading CFDs is basically speculation. You’re betting that an asset will go up or down in value. The difference between traditional share trading and CFD trading is that you don’t actually buy shares. Instead, you open a position which gives you exposure to changes in price of an underlying asset.
What is Amazon?
Founded in 1994 by Jeff Bezos, it began as an online bookstore and has grown into one of biggest retailers on earth. It operates in 11 countries and remains one of world’s top Internet companies by revenue.
How does it work?
First, sign up for your own platform on a broker such as Plus500 or Avatrade. Once you’ve done that, you’ll need to deposit some money into your account. For demonstration purposes, let’s say we invest $1,000. We then buy a contract of difference from Avatrade. A contract of difference is essentially a way for investors to bet on movements in financial markets without owning any actual stock or stock rights.
Is it risk free?
No, it is not risk free. Even though you are trading with CFDs on an asset that you can buy and sell any amount of at any given time, there is still a chance that you can lose money. However, as long as you don’t trade more than your budget allows for and stick to a stop-loss limit, your losses will be small enough for you to cover them by using only a small portion of your account balance.
What are its advantages?
An Amazon Contract for Difference (CFD) is basically a contract between two parties. It involves a fixed underlying asset, in our case it’s shares of stock in e-commerce behemoth Amazon. These CFDs are linked to real-time pricing data on an exchange. This means that if you think that price is going up, you can purchase a CFD and if it does go up, your position will get more valuable.
Which are the best brokers that use this system?
The best brokers to use are some of CMC Markets, IG, and eToro. There are many more high-quality companies you can use. They’re all safe and secure. Find one that fits your trading needs and level of risk you want to take on in order to invest $200 a week in Amazon CFDs.
Am I allowed to start trading with as little as $200?
The short answer is yes, you can start trading with as little as $200. In some cases you might even be able to get started for free. There are several platforms that offer free demo accounts and some that give away free share just for signing up.
Why should I trust you, where can I find more information about this strategy?
If you want a detailed explanation on why you should invest in CFDs and get started on Amazon, visit my website and sign up for my free report. It explains everything you need to know.