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…
Instalment Warrants
An instalment warrant is a form of derivative, one which is designed to resemble a contributing share. Typically, the underlying shares are blue chip stocks. Instalment warrants are initially issued by a third party (an institution) and not by the company which issued the underlying shares to which the warrant relates. A purchaser of such…
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….
Options Shorting Strategies for Beginners
Before proceeding into trading any type of instruments and strategies you have to ask yourself: – What is my goal? – How much time can I dedicate to trading? – What is my risk tolerance? – What is my strategy? Option selling (writing) offers reasonable profit potential and generally requires only couple of hours a…
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…
What is the difference between American and European style warrants?
When we talk about the “style” of a warrant we are referring to when the warrant can be exercised. Equity Warrants are very similar to equity options. Much like equity options, warrants can be either call warrants or put warrants. A call warrant gives the holder the right to buy the underlying security at some…
