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FAQs Index: CFD Trading Basics : Short Selling : More FAQs here : Stop Loss Q & A : Advanced FAQs : Advanced Trading Techniques
Always wanted to trade Contracts for Difference (CFDs) but didn’t know how? Our FAQ’s section on CFDs gives you all the information you seek. You can even have your questions answered by a market expert!
There are two ways to browse through the questions – either use the Index lists above or browse through the FAQ sections below. We will be adding more questions in the next few months.
What it Is, Who Trades CFDs & Why trade CFDs
Where did CFDs come from, and why the Weird Name?
What is a Contract for Difference?
CFDs Trading Examples
Who trades CFDs? Is CFD Trading Day Trading?
Difference between Investors and Speculators
Is Trading or Investing Gambling?
CFDs Suitability in an Investment Portfolio
Gearing and Margin Trading
What are Initial (Deposit) Margins?
What are Maintenance (Variable) Margins?
Gearing and Leverage
Beware very low CFD Margins
Interest and Financing Charges
Trading Costs (DMA or Market Maker) and CFD Expiration Dates
Contracts for Differences Trading Costs
Do Contracts for Difference Expire?
Direct Market Access and Market Maker Execution
Level 2 – Workings & Application
Exchange Traded CFDs / Commsec ASX CFDs
Shorting and Short Selling
Introduction to Short Selling
Naked Short Selling
Who are the Short-Sellers? How Popular is it?
Restrictions and Borrowing Costs
Borrowing and Lending Shares for Short Selling
Preventing your Shares Holdings from being Shorted
Shorting CFDs or Shorting Stocks? Is Shorting Legal?
Is Shorting Bad? Is Short Selling Evil?
Why is Shorting Riskier than Buying?
Shorting Small Caps? Shorting Disabled?
Shorting Benefits and Other Uses of Short Selling
Famous Shorters: George Soros and Simon Cawkwell
CFDs vs Spot Forex vs Spread Betting
Stop Loss Orders and using Index CFDs for Hedging Purposes
Stop Loss and Guaranteed Stop Loss Orders
Using Index CFDs to Hedge Investment Portfolio
CFDs vs Options vs Warrants vs Futures
CFD Trading versus Options
CFD Trading versus Covered Warrants/Turbos
Stock Index Futures
Trading CFDs vs Stocks & Margin Loan Trading
What is a Share CFD?
Why trade CFDs instead of Stocks?
Trading CFDs on Margin vs Borrowing to Buy Shares
More Risky than Shares Trading?
Why are CFDs free of UK stamp duty?
Forex Spreads / Index Spreads
Index Trading and Commodity CFDs
What are Index Spreads?
Forex Spreads: Fixed or Variable Spreads?
Starting to Trade
Can I start trading with 200 Pounds?
Risk per Trade and Position Sizing
Shorting and the Importance of Timing
Advantages and Disadvantages
What’s the Catch with trading Contracts for Differences?
Advantages and Popularity of CFDs
CFDs: Disadvantages and Pitfalls
The Banking Crisis
The Banking Crisis – Are Derivatives to Blame?
The Uptick Rule and the Shorting Ban
CFD Pricing and Corporate Actions
CFD Pricing: Daily Cash and Daily Futures
Trading Out-of-Hours and Liquidity
How Dividends, Stock Splits…etc are Accounted for
Delivery of Stocks and Public Disclosure
Market Makers and the Small Print
Should I steer clear of Market Makers?
The Small Print in CFD/Spread Betting Accounts
Changing Margin Requirements
CFD Providers Hedging Exposure
Researching Stocks and Trading Styles
Researching Stocks and Shares
Value Investing
Technical Analysis vs Fundamental Analysis?
Day Trading and Swing Trading
Developing a Trading System or Strategy
Small Cap Shares vs. Blue Chip Stocks?
How Successful Investors Trade and Think
CFD Trading Tips
Successful Traders versus Losers
Perseverance and Trading Success
Can you become a Millionaire trading CFDs?
Claiming Losses Against Capital Gains Tax
Trading Pitfalls and Common Mistakes
Advisory Brokers and Investment Funds
Advisory Brokers and Investment Funds
Why are CFDs not permitted in the USA?