Spot or CFD Trading?

1 min. readlast update: 01.23.2024

Technically, all Afterprime products are CFD, e.g. spot gold CFD, spot FX CFDs, etc.

 Why? Contract For Difference (CFD) traders do not own the underlying asset but rather have a contract to receive revenue for the difference/change in price. 

When you trade with Afterprime, we execute your trades as principal, since we issue the product to you, i.e. we are the financial services provider giving you the product. 

This legal relationship does not mean your trade is not executed by one of the group's liquidity providers (we are always able to demonstrate which liquidity provider filled your trades), it just means that Afterprime is the legal counterparty to your trade. This is generally how OTC markets operate. 

Afterprime cannot act as an agent between a trader and the market since this would require the trader to have a relationship with the prime broker. 

Afterprime can and does facilitate such arrangements for institutional traders that have their own prime broker. 

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