Single Stocks CFDs and MT4: Are they compatible?

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We have known from several written articles and tips that are given by most financial advisers that the use of the MT 4 Platform is one of the most effective means for traders to enjoy an easeless trading journey.  technically,  the MT 4 Platform is commonly used by forex traders but its job, however, does not end there.  Due to its versatility,  other financial instruments such as stocks and futures are also supported by this platform.  The big question however is knowing if this famous platform als supports CFDs especially single Stocks CFD.  In this written piece,  we shall give you a brief explanation about Single stocks CFDs and if it will be compatible with the Metatrader 4 platform. 

Single Stocks CFD

A single stock CFD is an asset that is in the form of CFDs.  The term CFD stands for Contract for Differences.  SInce it naturally falls under the CFD family,  this asset gives the privilege of having an indirect exposure when buying or selling in the market.  Thus,  it is important to understand that you as a trader or holder of CFDs do not have the right of ownership to a particular stock but you can enjoy the privilege of gaining profit or even losing when you make a wrong move.   In the case of a single stock market CFD,  this type of contract can work in two ways.  It could work for hedging purposes and at the same time speculation.

The users of Single Stock CFDs

Single stock CFDs pose great risk if you are someone who is unaware of manipulating products that work under leveraging. With this nature in mind,  a certain group of traders may find this instrument useful despite its drawbacks.  Listed below are the group of traders who may find Single stock CFDs useful towards obtaining their target profits. 

1.Hedgers

This group of traders have the characteristics of securing their profit by placing a trade so as to protect the rest of their assets against the erratic movement of rates in the stock market.  As observed,  a hedger is someone who explores other types of financial instruments and trades on them while holding another instrument.  Instead of selling an asset when the rates allow him to do so,  he tries to keep them and invests on another asset with a hope that his gain on the later asset would compensate for his loss on the other one. 

2. Speculator

Speculators are a group of traders whose goal is to take risks with the hope of making a profit.  their strategy works more like betting.  When purchasing an asset,  they rarely hold onto it for a long time because they wish to obtain their profits as the asset immediately changes its rate over time.  These traders are believed to have expertise with price fluctuation predictions as well as extracting profits from the buying or selling rate. 

Conclusion:

Whether you are a speculator or a hedger who is into trading regular CFD and single stock CFDs, the use of the MT4 platform could help your trading career flourish not just because of its fame but because of its versatility in terms of catering to various trading instruments.

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