Futures – A Beginner’s Guide
A Beginner’s Guide to Trading Futures Contracts Futures contracts are derivative financial instruments whose value is derived from an underlying asset. The history of futures contracts can trace their origins back to ancient Greece and Mesopotamia. Agriculture is a notoriously volatile business, subject to severe and unpredictable weather conditions that dramatically impact the price of…
Options – A Beginners Guide
A Blueprint for Options Trading for Market Newcomers Uncertainty has long plagued both product producers and the end-users of those products. Going back thousands of years, early players developed a system of contractual arrangements to promote certainty in product pricing. These early contracts were “derivatives,” meaning the value of the contract depended on or was…
Warrants – A Beginner’s Guide
The Basics of Warrants The history of derivative investments goes back thousands of years when financial contracts whose value relied on, or “derived from” an underlying asset came into being. In the early days, the underlying assets were most often agricultural commodities with a contract setting a future time and price for purchase. In today’s…
A Beginner’s Guide to CFD Trading in Australia
This article will provide you with everything you need to know to start CFD trading in Australia. Contracts For Difference, or CFDs for short, allow traders to speculate on the prices of financial instruments without needing to own the underlying asset. It is important that beginners looking to get started with CFD trading understand the…
Gold mining stocks’ futures ride
The gold miners’ stocks continue to vex contrarian traders, toying with herd psychology. They blasted higher to a key technical breakout in early November, building bullishness. But that was soon dashed on the rocks as they plunged into late November, fueling bearishness. While such schizophrenic action seems capricious, it is all driven by how gold-futures…
Futures speculators buying gold and silver
Both gold and silver have enjoyed massive buying by American futures speculators in recent weeks. It all started with Fed chair Janet Yellen’s cavalier dismissal of inflation, but the buying momentum persisted well after that. Happening in the midst of the summer doldrums when global precious-metals investment demand is weak, this is an exceptionally-bullish portent. …
The Big Movers – Why Index CFDs Are Proving Their Worth
At the height of the global financial crisis, CFD traders made a big migration. From individual stock CFDs, they moved to index CFDs; and later, to currency CFDs. The move to index CFDs came because “people could see that the indices traded 24 hours, instead of 10 am-4 pm for shares,” says Kara Ordway, senior…
Play The CFD Market Like A Professional
For CFD users, pairs trading is a standard strategy that lets you ignore the current trend in the overall market, or even in a stock. You make money if your favoured stock – the one you buy – outperforms another similar one that you sell. But there are traps, including the need for close monitoring….
Protect your portfolio from market wobbles
Trading derivatives can conjure up images of overnight wealth or wealth destruction. A reason is leverage, where speculating on an asset class can quickly magnify profits and losses for a small up-front outlay. Contracts for difference, a popular financial instrument among speculators, are also an effective weapon in preserving wealth when acting as a hedge….
CFD strategies in all markets with examples
Increasingly unsatisfied with long exposure through the stock market, more investors are using a diversified mix of CFD’s to add leverage and flexibility to their investment portfolio. But regardless of which CFD trading strategies are used, and which instruments are traded, the overarching goal is to make money, despite what markets are doing. Irrespective of…
