Tag: CFD trading

Trading CFD’s? Three things that you should know

Trading CFD’s? Three things that you should know

Trading Articles
CFD, or Contract for Difference is a form of derivatives trading that offers certain distinct advantages compared to trading the security directly. Most notably, CFD trading is more commonly used for Stocks and commodities rather than spot forex. If you are considering trading CFD's then here are 5 things to bear in mind before you short or long that contract. But before we get into the details, a little bit about CFD's. Contracts for Difference or CFD for short is a contract that is agreed upon between the buyer and the seller. In most cases, the broker with whom you trade CFD's is the seller of the contract. During the term of the contract, if the value of the security increases, the seller pays you the difference and if the value of the security decreases, you end up paying the selle...
Four Reasons why you shouldn’t trade Twitter Stocks (CFD)

Four Reasons why you shouldn’t trade Twitter Stocks (CFD)

Trading Articles
As twitter gears up for its IPO we notice a spike in forex brokers offering promotions trying to get mileage out of the Twitter IPO's buzz. While the marketing message looks nice a juicy on the surface, scratching the surface throws up an entirely different picture. One broker that caught our attention was Avafx/Avatrade who offers a free no deposit bonus for trading twitter CFD stocks. Here are 6 reasons I think of why you shouldn't fall for this marketing trick, atleast when it comes to CFD stocks. #1 Trading from IPO date makes sense if you actually own the shares When a company goes public, they usually make use of an underwriter to facilitate the IPO flotation. These underwriters are institutions which are the biggest holders of the shares in the company. After which probably ot...
Introduction to CFD Trading & CFD Brokers

Introduction to CFD Trading & CFD Brokers

Trading Articles
Contract For Differences, or CFDs for short enable the investor to trade on the price action of stocks and indices. CFD’s are high risk derivatives and can be traded without physically owning the underlying assets that are being traded. CFD's are popular because they can be traded on leverage, which is otherwise impossible. CFD trading makes for an ideal trading option for those looking for flexibility in terms of maximizing their profits whilst allowing them to hedge their risks. Trading CFDs can be efficient due to the market that they are market participants, thus allowing the investor to keep their costs low and be able to trade during market volatility. However irrespective of the flexibility offered by CFD’s they are not suitable for all kinds of investors. A CFD trade will act
How to trade Crude Oil Inventories Report

How to trade Crude Oil Inventories Report

Economic Indicators
Crude oil inventories is a weekly report published by the EIA, Energy Information Administration and covers the inventory report for the previous week. The report marks the weekly increase or decline in the crude oil inventories of oil stored in facilities in the US. For crude oil traders the inventory report is looked up to, to understand the weekly fluctuations of supply and demand. Broadly speaking, when demand rises, inventories decline thus pushing prices higher and when demand for Crude oil falls, the prices drop in accordance. While the crude oil inventories report is an important news event to take into consideration, Crude oil traders should note that price of Crude oil are also influenced very easily by geo-political events. When looking at the Crude oil inventory report, ...