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Introduction to CFD

Published Sep 25, 2013 in Business & Management
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Introduction to CFD... Read more

CFD or Contract for difference is a contract between two parties, typically described as the "buyer" and the "seller", which price is typically based on the underlying asset, for example an equity index, a single stock or commodity futures.

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Presentation Slides & Transcript

Presentation Slides & Transcript

Introduction to CFD

CFD or Contract for difference is a contract between two parties, typically described as the "buyer" and the "seller", which price is typically based on the underlying asset, for example an equity index, a single stock or commodity futures.At the end of the contract or when counterparties decide to close position the seller will pay to the buyer the difference between the current value of an asset and its value at initiation, if the price of the underlying asset has increased. Alternatively if the value of the underlying has fallen the difference is negative and the buyer pays instead to the seller.To learn more visit: http://www.ifcmarkets.com/en/ntx-indicators/oscillators

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:In effect CFDs are financial derivatives that allow traders to gain exposure on a variety of assets, allowing take long positions when prices of the underlying move up and short positions when prices move down. Being tied to the underlying asset the CFD price moves exactly in the same direction as the price of the underlying and depends on the same factors. At the same time, being much more flexible and accessible, CFD trading offers a number of advantages compared to trading the underlying asset directly.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:CFD (Contract for Difference) is a contract between two parties known as "buyer" and "seller" who agree on exchanging the difference between opening and closing prices of the contract.CFD trading offers a number of advantages over trading the underlying asset directly. In addition to currencies, contracts for difference provide great opportunities for traders wishing to gain exposure on different markets. Enjoy the following benefits of CFD trading:Enjoy the following benefits of CFD trading:

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:Fast access to many markets and the most liquid assets through one brokerage account, providing considerable diversification opportunitiesLeveraged positions with the use of margin able to enhance profitsCost reduction due to absence of taxes and hidden commissionsAbility to take long or short side trading without limitationEase of trading from anywhere in the world by using a computer and IFC Markets trading platforms.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:Moreover with IFC Markets there are numerous unique benefits of CFD trading:More than 80 CFDs on stocks, CFDs on major Equity Indices and commoditiesUnique Golden Instruments offered through IFC Markets trading platformUnique swap/rollover policy, based on free-borrowing concept of non-currency assetsUnique ability of trading continuous CFDs on Indices even after the stock exchange closesUnique ability of trading continuous CFDs on commodities futures without the need to follow expiration datesCombination of these benefits has converted CFDs into a popular investment, speculative and hedging tool for both retail traders and institutional investments.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:CFD contracts are traded in the most of the developed world. Because of the ability to trade CFDs on margin those are actually financial instruments that are generally traded by financial institutions to hedge against ownership on original assets, and by individuals and retail traders that speculate on its price direction.CFDs were firstly traded on stocks of the London Stock Exchange in early 1990, initially available to only institutional traders to hedge their exposure on the underlying share. At the end of 1990s CFDs were introduced to retail traders and together with the development in computerized system became very popular.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:Thanks to low costs, leveraged positions and time saving benefits, CFD trading has been gaining more and more popularity throughout the past decade. Today the CFD market has developed a lot since the first CFD contracts and offers huge variety of underlying financial instruments ranging from stocks, equity indices, and currencies to commodities, bonds and derivatives.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:CFDs on Equities, Stock Indices and Commodities, totaling more than one hundred trading instruments, are now available in the trading platform NetTradeX for all the clients of IFC Markets. The logic of CFD trading is quiet simple and is very similar to traditional currency trading. The client can either buy a certain number of CFDs expecting a rise of the underlying asset or sell CFDs expecting a drop of the underlying asset’s price. Later on an opposite transaction is made to close position. This is the first very important feature of CFD trading as profits can be made on both rising and falling markets.

THESE INSTRUMENTS GREATLY ENLARGE THE POSSIBILITIES OF CREATING TRADING STRATEGIES AND DIVERSIFICATIONS OF THE PORTFOLIO MANAGER BY ACQUIRING NEW PROPERTIES AND CHARACTERISTICS DUE TO THE NATURE OF EACH ASSET PRICING, "GOLDEN INSTRUMENTS" - A REAL DISCOVERY FOR TECHNICAL AND SYSTEM TRADERS, PERIODICALLY PROVIDE RELIABLE SIGNALS FOR OPENING A RISK-BASED BALANCED POSITIONS.Acceleration/Deceleration (AC) Oscillator:CFDs are traded on a margin basis. In other words the client is able to open a position having deposited only a small portion of a contract’s value depending on his account type and on the contract’s margin requirements. This is a very important advantage as leverage can raise profits considerably. However there is also a risk of increasing financial losses in case of unfavorable price movement of the underlying. This is why traders are required keep funds to fulfill any unfavorable move against their position and at any time the margin requirement must be maintained to keep the position open.

THANKS FOR ATTENTIONBEST REGARDS,IFC MARKETS