To open a CFD position, you need to deposit only a fraction of the full value of your trade, usually from 2% -30%. CFD trading can offer the possibility of a much better return on your initial investment than you would receive if paying for the trade in full. Conversely, losses will also be amplified, as shown in the example below
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Why trade Contracts for Difference (CFDs)?
CFDs provide an alternative way to trade. Waiting to set aside the capital to buy a share portfolio can mean missing valuable trading opportunities. CFDs allow you to be involved in the market now. And with only a proportion of your capital invested using CFDs in comparison to physical shares, you have the freedom to use the difference for other investment opportunities – making your money work smarter.
Swing Trading
Swing trading is commonly defined as a speculative activity in financial markets whereby instruments such as stocks, indexes, bonds, currencies, or commodities are repeatedly bought or sold at or near the end of up or down price swings caused by…
Investors flee to gold
Stock-shocked investors are fleeing to gold, pushing the precious metal to new heights.
Gold reached a new intraday high of $1,782.50 per ounce in electronic trading before backing down to $1,746.20. That’s an increase of $33, or about 2%, compared to its Monday close. On Monday, gold broke $1,700 for the first time.
The current flight to gold has been by a nasty stock market plunge. On Monday, the Dow Jones industrial average plummeted 624 points, or about 5.5%, and the Nasdaq and S&P 500 dropped nearly 7%. It was the worst day on Wall Street since the 2008 fiscal crisis.
Foreign Currency Brokers Come Under Fire
ompanies that allow home investors to trade foreign currencies are coming under fire as regulators consider whether to put more rules on the fast-growing but risky market.
Currency brokers allow ordinary Americans to speculate on the value of dollars, euros and yen, and have grown revenue 374% since 2007, drawing in 615,000 American traders, according to the Aite Group consulting firm.
The most intense recent criticism of these brokers came from a hedge fund manager who researches and invests in companies that cater to home investors.