 |
 |
||||||
|
|||||||
 |
|
Welcome to our introduction to CFDs -
Contracts For Differences
What is
a CFD?
Instead of buying a share, you
buy a contract (from a bookmaker or broker). You do not own the share. You have a contract to exchange the difference between the entry price and the exit price of a financial instrument or security. This is nice if the share price is declining, and you are able to predict it using fundamentals and technical analysis. If you buy shares, you lose money. If you buy CFDs promising to exchange the difference between the entry price and the exit price, you make money. Advantages 1. You can go short and make money when share prices decline. You like bear markets and bull markets the same. If you believe that the market is going to crash you can go short. 2. No stamp duty 3. Commissions are very low and the bid-offer spread is usually very narrow 4. You can use leverage and trade on credit. Firms give you margin 5. You can remain anonymous - investors can build up substantial equity stakes under a cloak of anonymity. 6. You may have the capital gains from a particular stock without having to actually physically own or pay for it. You have considerably less cost than via traditional sharedealing. 7. You trade indices (VERY difficult and dangerous, can be very profitable after bad news). 8. You trade commodities So, it looks great! Not really. There are no profits if there are no risks. Risks of CFDs 1. Losses can be unlimited. Similar to spread betting, your losses aren’t limited to your stake. 2. It is NOT tax free like spread betting. It is considered to be investment, not gambling like spread betting. Note: We neither advertise nor earn commissions from the trading and investment products we discuss. We do not recommend specific firms. We do not collect information about visitors. --------------------------------------------------------------------------------------------------------------------- This website should not be considered as a solicitation or offer to conduct investment business in any jurisdiction. Investors residing in all countries should make sure that they do not infringe local financial regulations. They may only follow my thoughts (not recommendations) once they have ascertained that doing so will not result in such a violation. The information contained on this website does not constitute an offer to buy or sell currencies, options, CFDs, futures or any other product. Investors should be aware that when buying or selling any investment whose price or value is subject to volatility and fluctuations, they may lose what they have invested and more. Past performance does not necessarily reflect future performance. The services and investments referred to on this website may not be suitable for all investors and before trading, you should seek independent advice from your qualified financial adviser. Derivatives, spread trading, options, CFDs and futures are EXTREMELY volatile instruments and in certain circumstances you may lose MUCH MORE than your initial investment. You should consult your financial adviser before trading. --------------------------------------------------------------------------------------------------------------------- Excellent Courses, Exceptional Venues The role that the environment plays in learning, solving problems and thinking out of the box is often ignored. 
In terms
of aesthetics and comfort, our venues are second to none.
Click
here
to see why
Our web sites about investments and compliance www.markets-in-financial-instruments-directive.com www.mifid-training.com www.mifid-board-directors.com For Hedge Funds and UCITS: www.ucits-iii.com www.ucits-iii-training.com Keywords Spread Betting, Contracts for Differences (CFDs), What is Spread Betting, What is Contract for Differences (CFDs), Internet stock investing , investing in stock, investing in stock market, online stock investing, online stock market investing, online stock trading, online trading, stock investment, stock market trading. ------------------------------------------------------------------------------------------------------------------------------ |
|
Our Web Sites
Download Our Consulting and Training Services Catalog
Download Our Consulting and Training Services Catalog for Banks
|
