When you trade on Rise, you are trading financial instruments known as Contracts for Difference (CFDs).
Speculating on Price, Not Ownership
Unlike traditional investing, where you buy physical shares of a company or a physical stack of foreign currency, trading CFDs means you are speculating on the price movement of an asset.
For example, if you trade oil on Rise, you do not buy a physical barrel of oil. Instead, you enter into a contract to exchange the difference in the price of oil from the moment you open the trade to the moment you close it.
The Advantage of CFDs: Two-Way Markets
Because you do not own the underlying asset, you can potentially profit regardless of whether the market is going up or down:
Going Long (Buy): You open a "Buy" position if you believe the price of the asset will go up.
Going Short (Sell): You open a "Sell" position if you believe the price of the asset will go down.
If you have questions about which instruments are available as CFDs on our platform, please reach out to support@traderise.com.