Derivatives

Derivatives can seem intimidating, but they’re powerful tools when used correctly. This section breaks down the key derivative products available to Australian investors — including CFDs, options, futures, and warrants — through beginner-friendly guides, real-world trading strategies, and market analysis. Traders at every level will find useful content, whether they want to hedge an existing portfolio against market downturns or explore more active, leveraged trading approaches.

Options - A Beginners Guide

Options – A Beginners Guide

By Bob Kohut | 31 Jan 2025

A Blueprint for Options Trading for Market Newcomers Uncertainty has long …

Futures - A Beginners Guide

Futures – A Beginner’s Guide

By Bob Kohut | 04 Feb 2025

A Beginner's Guide to Trading Futures Contracts Futures contracts are derivative …

CFD strategies in all markets with examples

By AAP | 01 Nov 2009

Increasingly unsatisfied with long exposure through the stock market, more …

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What is a CFD and how does it work?

A Contract for Difference, or CFD, is a financial instrument that allows you to speculate on the price movement of an asset — such as shares, indices, or commodities — without actually owning it. You profit if the price moves in the direction you predicted, and lose if it moves against you. CFDs use leverage, meaning you only need to put up a fraction of the total trade value as a deposit. While this amplifies potential gains, it equally magnifies losses, making CFDs a high-risk product best suited to experienced traders.

Hedging your losses, and making profits, using CFDs

By AAP | 22 Feb 2009

Not everyone lost money in the past couple of weeks …

The highs and lows of CFDs: Not for the faint hearted

By AAP | 13 Feb 2009

Will Kraa recently enjoyed a stellar run trading CFDs - …

Scalping Basics: what it is, and how it works

By AAP | 20 Jan 2009

Scalping is a trading technique that involves opening and closing …

What is the difference between options and futures contracts?

Both options and futures are derivative contracts that derive their value from an underlying asset, but they work differently. A futures contract obligates both parties to buy or sell an asset at a set price on a specific future date, regardless of market conditions. An options contract, by contrast, gives the buyer the right — but not the obligation — to buy or sell at an agreed price before a set expiry date. This makes options more flexible, as the buyer can simply let the contract expire if market conditions are unfavourable.

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