Share

Archive for the ‘course’ Category

CFD Shares Trading

December 29, 2010admin No Comments »

CFD Shares Trading Contracts for difference (CFDs) can be used for all sorts of financial markets. If you are already trading shares, it will be worth your while learning how to do this using CFDs, as they give you much more scope for high profits. CFD shares trading involves leveraging your money. Rather than having to find money to own stocks, for a fraction of the price you can control and benefit from the change […]

Read More »

CFDs Comparison to Shares Trading

December 29, 2010admin No Comments »

CFDs Comparison to Shares Trading Contracts for differences (sometimes referred as swaps or waves) allow investors to take long or short positions, and unlike futures contracts have no fixed expiry date or contract size. In practical terms, investing in shares through contracts for differences offers similar profit (or loss) opportunities as when trading stocks in the traditional manner. CFD trading is in effect similar to normal shares trading with some important differences. You deal at […]

Read More »

CFDs Trading Costs and Fees

December 29, 2010admin No Comments »

CFDs Trading Costs and Fees CFD stands for contract for difference, where you profit from the change in value of the underlying financial security, such as a stock, without ever owning it. As a derivative, you only pay a fraction of the cost of the underlying, which means you are effectively borrowing money and must pay interest on the value. This is just one of the costs of CFD trading, and you need to understand […]

Read More »

CFDs and Variation Margins

December 29, 2010admin No Comments »

Variation Margin An important aspect of contracts for difference (CFDs) is that a trader using CFDs must agree to maintain their positions at the required deposit value on an ongoing basis. Positions are updated daily so that every position is valued at the close of each business day. Profits are credited to the trading account, while any losses are deducted. Brokers constantly monitor and re-assess the value of all contracts for difference positions. The margin […]

Read More »

CFDs and Initial Margin

December 29, 2010admin No Comments »

Initial and Variation Margin Initial Margin CFD trades can be executed with the investor only having to lay out a fraction of the total face value of the trade. This is known as trading on margin and the CFD broker borrows the remaining fraction of the value of the position to the investor. Suppose a CFD provider offers 15% margin and you have a good set-up for a trade. You want to trade £10,000 worth […]

Read More »

Overnight financing on CFDs

December 29, 2010admin No Comments »

Commission and Overnight Financing on CFDs It’s important that you understand the financing costs involved when you trade CFDs. You see, while they are not very large, they can mount up over time, and you must account for them when considering how profitable your trading has been. You incur financing costs because of the leverage that CFDs give, where you only have to pay a fraction of the value of the position you are taking […]

Read More »

Value of One CFD

December 29, 2010admin No Comments »

Value of One CFD What is the Value of one CFD and in what Currency is this Traded in? A single contract between you and your CFD provider has the same value as buying one share in the underlying company. The full value of your CFD position is represented by your stake (or quantity of CFDs you buy) * the price: CFDs are traded in the base currency of the contract as you will see […]

Read More »

Making a Trade Plan: The Importance of a Trading Plan

December 29, 2010admin No Comments »

Making a Trade Plan Once you’ve learnt all the fundamentals about trading, and are ready to get on with it, you have to take one more step and that is to make a trade plan. If you’ve failed to plan, you plan to fail. There‚Äôs no substitute for a clear and simple trading plan. If you see a successful trader who doesn’t appear to have a plan, there are two things you should know – […]

Read More »

CFDs: Keeping Your Balance

December 29, 2010admin No Comments »

Keeping Your Balance When you trade contracts for difference (CFDs), it’s very important to keep an eye on your balance. This has nothing to do with falling over, but everything to do with whether and how much you are able to trade. Unlike stocks, where you spend your money and wait for the right time to sell, CFDs work in a way that constantly changes the balance in your account. The equity (also referred to […]

Read More »

Stop Loss Orders: A Necessity

December 29, 2010admin No Comments »

Stop Loss Levels: A Necessity If you have traded for CFDs or shares for any time at all, you will have come across the idea of a stop loss order. A stop loss order is an order to your broker to sell (if you have a long position) when the price drops to a certain level. This means that even if you are not watching the security, your broker will automatically close out your position […]

Read More »
Share
Recommend this on Google

The content of this site is copyright 2015. Contracts for Difference Ltd. Please contact us if you wish to reproduce any of it.