Is volatility a good or bad thing for trading CFDs?
The attention of the world remains firmly focused on the US share market as volatility reigns supreme. We have seen extraordinary volatility over the past weeks as the economic outlook continues to worsen and consumer confidence remains low. As such, we have seen unprecedented fluctuations in other asset classes and instruments as Gold and Oil…
Can I buy an option that lasts for two or three years?
This is most certainly true. Most optionable stocks have longer term option contracts, some of which do not expire until December 2011. In reference to a starting point an investor always needs to reflect on their trading objectives, or views as this will always form the basis of their trading strategy. Keeping in mind that…
Where did CFDs come from, and why the weird name?
Contracts for Difference or CFDs were originally developed in the United Kingdom in the early 1990’s by Smith New Court, a London based trading firm. CFDs were mainly used by the firm’s hedge fund clients to short sell using the benefits of leverage and also to take advantage of the stamp duty exemptions, which were…
What does the term scalping mean, and how can a scalper make money on CFDs?
Scalping is a trading technique that involves opening and closing positions intraday in a variety of instruments such as FX, Futures or CFDs; typically “scalpers” will aim to profit from small price movements in their trading positions. They will also tend to trade much more frequently than medium to longer term “trend” following traders. It…
How CFDs are taxed
If you’ve been unnerved at the market fall, and you dread conversations with your CFD provider, here’s a surefire way to turn the tables: ask your provider about the tax treatment of CFDs Your provider will instantly utter the weasel word “compliance”, firmly state that it couldn’t possibly be seen to be giving individual tax…
