⚠️ Risk Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please read Nemo’s full Risk Disclosure.
What is BOOST? A Beginner’s Guide to CFD Trading: Spreads, Leverage and More
Ever come across the term CFD trading and wondered what it means? Or maybe you’ve seen the word leverage thrown around in trading discussions. At Nemo.money, we call our CFD trading factor BOOST — because it’s designed to give your investing the potential to grow faster. It’s one of the many great features of the Nemo.money app, alongside 0% commission across all trades, 6% AER interest paid daily on uninvested cash and more.
Think of it like driving a car: with regular investing you cruise steadily, but with BOOST you press the accelerator and instantly add more power. Of course, the faster you go, the more control you need, and this does amplify the risk too.
But before you press that BOOST button, it’s crucial to understand CFD trading, spreads, and the risks vs rewards, as well as get through our appropriateness test to ensure this tool suits your experience level. Ready? Let’s go.
What is BOOST?
At Nemo.money, we call our CFD trading factor BOOST, because it allows you to “boost” your trading power through leverage.
What is CFD Trading?
CFD stands for Contract for Difference. It’s a type of financial derivative that lets you speculate on the price movement of assets like stocks, indices, commodities, or forex — without actually owning them.
Here’s how it works:
- Instead of buying the asset itself (like a stock), you’re entering into a contract with a broker or platform (like us, Nemo.money).
- Your profit or loss depends on how the price of that asset moves between the time you open and close the trade.
- If the price goes in your favour, you earn the difference. If it goes against you, you pay the difference.
- Every CFD trade includes a spread – the difference between the buy and sell price, which all trading platforms include on trades. On Nemo.money however, the spread is low and always included upfront.
👉 Example: Instead of owning Tesla stock, you could trade a CFD on Tesla’s price movement.
So, CFDs let you trade on market movements — both up (going long) and down (going short).
BOOST vs Regular Investing
It’s important to understand how BOOST differs from simply buying shares through Nemo:
- Regular Stock Investing: You buy and hold the stock. If you buy Apple at $150 and it rises to $165, you make a $15 gain per share. You also own the stock and may receive dividends.
- BOOST (CFD Trading): You don’t own Apple shares. Instead, you’re trading on its price. If Apple rises from $150 to $165, you still earn $15 per share difference — but with leverage, your gains (and losses) can be amplified.
This is why BOOST is often referred to as trading with leverage. Remember, before you can start trading on BOOST, you will need to complete a short appropriateness test, which we explain further down.
How Leverage Works in BOOST
Leverage lets you control a larger position than the money you put in upfront. It’s like borrowing trading power.
Let’s break it down with an example:
- You want to trade Tesla (TSLA), currently priced at $200.
- With regular investing: You invest $100. If Tesla rises by 5%, you make $5.
- With BOOST at 5x leverage: Your $100 controls $500 worth of Tesla. If Tesla rises by 5%, you earn $25 instead of $5.
But here’s the flip side: if Tesla falls by 5%, your loss is also $25.
The same applies across other well-known assets. For instance:
- Apple (AAPL) – Trade on whether the stock price rises or falls.
- Gold (XAU/USD) – Speculate on movements in one of the world’s most traded commodities.
- S&P 500 Index – Gain exposure to the broader US stock market.
👉 This is why BOOST can be exciting, but requires careful risk management. Please read Nemo’s full Risk Disclosure.
Is CFD Trading Safe?
Many new traders ask: Is CFD trading safe? The answer is that CFDs are complex instruments that come with higher risk, particularly because of leverage.
The key is not whether CFDs are “safe” or “unsafe,” but whether you manage them wisely. The BOOST factor on the Nemo.money app includes tools like stop-loss orders that help limit downside, but responsibility always rests with the trader.
Boost: The Risk verses Reward
CFD trading with BOOST is all about the trade-off between risk and reward. Leverage can accelerate your gains, but it can also increase your losses just as quickly. Let’s break it down:
The Rewards of BOOST
- Trade rising or falling markets – Unlike traditional investing, you can profit even if prices drop.
- Leverage magnifies return – A small move in Tesla or Gold can yield handsome gains with BOOST.
- Access global assets – From Tesla and Apple to Gold and the S&P 500, trade some of the world’s most popular markets.
- Flexibile, short term opportunities – You move fast and can respond quickly to market shifts.
- Zero commission, competitive spreads: Instead of per-trade fees, you enjoy tighter costs thanks to small spreads.
The Risks of BOOST
- Magnified losses – Just as gains are amplified, so are losses.
- Market volatility – Sudden moves can wipe out your margin quickly.
- Not suitable for all investors – Especially beginners without a clear strategy.
⚠️ Risk Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. You should carefully consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money
CFD Trading for Beginners: How to Get Started with BOOST
If you’re new to leverage trading, here are some tips:
- Start small – Even a $10 position will show you how leverage works.
- Use stop-loss orders – Set automatic limits on how much you’re willing to lose.
- Learn the markets first – Practice by tracking assets like Tesla or Gold before trading.
- Never risk more than you can afford to lose.
Appropriateness Test: Your First Step Toward BOOST
Before you can use BOOST, our app asks you to complete an appropriateness test. This helps us ensure you're aware of how CFDs, leverage, spreads work. It's not a speed bump—it’s a safety check to make sure BOOST aligns with your trading experience and risk awareness.
How Nemo.money Supports You with BOOST
At Nemo.money, we’ve built BOOST to make CFD trading as simple and transparent as possible. With our app, you can:
- Trade Commission-free, with no hidden fees and low spread costs
- Trade globally with a wide asset range: 8,000+ Global stocks, ETFs, Crypto CFDs to indices, FX and Commodities.
- Utilise AI-powered insights and alerts through Nemes and market signals, helping you identify opportunities and manage risks
- Choose your leverage level depending on your risk appetite.
- Track your positions in real time with clear insights and alerts.
- Learn as you trade with our built-in guides and resources.
- Feel safe under our regulation from the ADGM FRSA, with segregated client funds and high transparency Regulated by ADGM's Financial Services Regulatory Authority
- Earn 6% Interest AER Paid daily - uninvested Cash in your wallet earns 6% AER interest daily, giving you more opportunities to invest
Final Thoughts: Is BOOST Right for You?
CFD trading through BOOST can be exciting, offering both flexibility and the potential for amplified returns. But it also carries higher risk — so knowledge, caution, and discipline are key.
Whether you’re exploring traditional stock investments or ready to experiment with CFDs, Nemo.money is here to give you the tools and confidence you need.
Ready to explore? Complete the appropriateness test, learn about spreads in our market details, and start your journey with confidence.
👉 Download the Nemo.money app today and discover how BOOST can power up your investing journey.
Disclaimer
This article is marketing material and should not be construed as investment advice. No information set out in this article be considered, as advice, recommendation, offer, or a solicitation, to buy or sell any financial product, nor is it financial, investment, or trading advice.
Any references to specific financial product or investment strategy are for illustrative / educational purposes only and subject to change without notice. It is the investor’s responsibility to evaluate any prospective investment, assess their own financial situation, and seek independent professional advice. Past performance is not indicative of future results.
For Q2 2025, 34% of Retail Client accounts that traded or held OTC Leveraged CFDs were profitable. For Q1 2025, 37% were profitable. For Q4 2024, 39% were profitable. For Q3 2024, 40% were profitable.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Please refer to our Risk Disclosure.
