How to Hedge your CFD Position Using Options
Despite what some critics say, derivatives have their place in the modern financial world. In fact, before the advent of derivatives it was extremely difficult if not impossible to hedge a trading position. Someone going long on a stock was in deep trouble if the price of that stock dropped and there was little he or she could do about it. Since options More...
Important tips when trading CFDs
Trading CFDs is no doubt a great way for a trader to expose himself to a much larger amount of trading capital than that present in his trading account. This is because a CFD is traded on margin, i.e. the trader More...
Short Selling CFDs – How it Works
Those readers who are only familiar with long term share trading might find the concept of short selling somewhat frightening and counterintuitive. The truth is that short selling has many benefits and when approached More...
Hedging and CFD trading
Anyone owning an existing share portfolio knows how scary things can become if one expects the market to take a substantial dive in the near future – without knowing when and how much it will recover. This is More...
The History of CFDs
Many of the products available to the modern trader have been around for decades if not centuries. Futures, for example, actually date back to about 1710 when the Japanese started trading rice in the forerunner More...
CFD Trading in the Forex Markets
CFD trading in the forex market is a relatively new, but increasingly popular phenomenon. There are many similarities between CFD forex trading and trading CFDs on stocks, but there are also important differences. If More...
Longer Term CFD Trading – Why it is Possible
CFDs are not normally associated with long term trading. Most traders use them for short term speculative trades on shares, commodities or currencies. This simply means that many traders are missing out on lucrative More...
Trading Penny Stocks with CFDs: Risks and Opportunities
Generally speaking CFD companies will concentrate on offering CFDs on stocks in major companies. The rationale behind this is not difficult to understand: shares with a large market capitalisation are usually more More...
The Principle of Leverage as it Applies to CFDs
Leverage can both be the doing and the undoing of any great trader. This single facet of CFD trading can either make or break a trader’s career. For the most part, most millionaire traders have made their millions More...
How to Trade the Trend with CFDs
Nearly everyone who has been trading CFDs for any length of time will have stumbled upon the sayings ‘trade with the trend’ or ‘the trend is your friend’. But what is a trend? Is it really that easy to spot? More...