Contracts for Difference (CFDs) are derivative products that allow investors to speculate on the rising or falling prices of underlying financial instruments without owning the assets. CFDs work by allowing traders to profit from price movements without buying or selling the underlying security, with profits or losses determined by the difference between the opening and closing trade prices. CFDs provide high leverage through low margin requirements, allowing traders to control large positions with a small amount of capital and profit from both rising and falling markets. However, CFDs also carry higher risk due to leverage.
Trading Lounge specialises in helping contracts for difference trader with CFD trading education,Technical analysis, CFD trading strategies, Daily CFD trades for shares, Including Forex, commodities and indices, Suppling around the clock analysis for whatever country is trading CFDs.
Master in trading, lesson 1: "The basics of trading and knowledge of the fina...Stefano Gianti
Master in trading is a 8 lessons course, from the basics to the advanced level in financial trading. Please find the recording of the webinar here: https://youtu.be/4PjI5E8JFag and register to the next lessons: https://en.swissquote.com/webinars?utm_source=swissquote.eu&utm_medium=post&utm_content=SG&utm_campaign=eFX-education
Obchodováním se CFDs zkušení finančníci a investoři získávají možnost vyzkoušet si na alternativních finančních trzích. Kontrakty na rozdíl (CFD) je derivovaným obchodním instrumentem umožňující získat výdělek na pohybech cen podkladového aktiva nahoru nebo dolů bez skutečného vlastnictví tohoto aktiva . Existují různé typy CFDs. Nejrozšířenější z nich a široce obchodovatelný mezi finančníky jsou CFD na akcie, CFD na indexy a CFD na komodity. Úspěch na trhu CFD zčásti závisí na poskytovateli CFD při výběru kterého máte brát v úvahu řadu bodů. Dalším klíčem k úspěchu záleží na posuzování rizik a ovládání jimi. CFD obchodování otvírá nové možnosti pro uskutečnění vašich obchodních nápad a strategií.
There are many different ways to trade and invest in the market such as physical stocks (delivery based),
physical bonds (delivery based certificates), physical commodities etc., as well as others such as options,
forwards, futures and so on. And CFD is being one of such instruments - perhaps the most flexible
instrument that can replicate all the others etc. So what is a CFD?
Contracts for Difference: What is CFD Trading?Peter Anderson
Explaining how CFDs and margin trading works. We also compare CFD trading to shares dealing and review some sensible tactics to apply to these trading products.
Trading Lounge specialises in helping contracts for difference trader with CFD trading education,Technical analysis, CFD trading strategies, Daily CFD trades for shares, Including Forex, commodities and indices, Suppling around the clock analysis for whatever country is trading CFDs.
Master in trading, lesson 1: "The basics of trading and knowledge of the fina...Stefano Gianti
Master in trading is a 8 lessons course, from the basics to the advanced level in financial trading. Please find the recording of the webinar here: https://youtu.be/4PjI5E8JFag and register to the next lessons: https://en.swissquote.com/webinars?utm_source=swissquote.eu&utm_medium=post&utm_content=SG&utm_campaign=eFX-education
Obchodováním se CFDs zkušení finančníci a investoři získávají možnost vyzkoušet si na alternativních finančních trzích. Kontrakty na rozdíl (CFD) je derivovaným obchodním instrumentem umožňující získat výdělek na pohybech cen podkladového aktiva nahoru nebo dolů bez skutečného vlastnictví tohoto aktiva . Existují různé typy CFDs. Nejrozšířenější z nich a široce obchodovatelný mezi finančníky jsou CFD na akcie, CFD na indexy a CFD na komodity. Úspěch na trhu CFD zčásti závisí na poskytovateli CFD při výběru kterého máte brát v úvahu řadu bodů. Dalším klíčem k úspěchu záleží na posuzování rizik a ovládání jimi. CFD obchodování otvírá nové možnosti pro uskutečnění vašich obchodních nápad a strategií.
There are many different ways to trade and invest in the market such as physical stocks (delivery based),
physical bonds (delivery based certificates), physical commodities etc., as well as others such as options,
forwards, futures and so on. And CFD is being one of such instruments - perhaps the most flexible
instrument that can replicate all the others etc. So what is a CFD?
Contracts for Difference: What is CFD Trading?Peter Anderson
Explaining how CFDs and margin trading works. We also compare CFD trading to shares dealing and review some sensible tactics to apply to these trading products.
Everything you need to know about Synthetic Indices Vince Stanzione for Deriv...Vince Stanzione
Synthetic indices are unique indices that mimic real-world market movement but with a twist — they are not affected by real-world events. These indices are based on a cryptographically secure random number generator, have constant volatility, and are free of market and liquidity risks. Vince Stanzione E-Book explains more
explain about techniques for hedging transaction exposure, how to used hedge future, option, money market for payable and receivable, comparing techniques for hedging vs not-hedging
This month join me, Robby P, Private Client Trader at Vunani Private Clients, on the 29th June where I will be talking to Michael Porter who often contributes fundamental trades to Stock Alert.
You will recall his recent BVT break-up trade.
We will cover
• Sum of part trades
• His core holdings
• How and when to divi strip
Vunani Private Clients is proud to present highly rated Industrial Small to Mid-cap analyst Anthony Clark who has just released his much anticipated Top 5 stocks to own for 2016.
It is easy to see why Anthony Clark's Top 5 has become so popular, especially once looking at performance below:
In 2012 the Top 5 generated a cumulative return of +28%
In 2013 the Top 5 generated a cumulative return of +40%
In 2014 the Top 5 generated a cumulative return of +56%
In 2015 the Top 5 generated a cumulative return of +51%
Have you ever looked at the news, or at a company’s results, and have had no idea what they mean or how to interpret it?
You know there’s information lurking deep down in the results that you could use to profit from, but you’re never sure where to look. Or exactly what to look at!?
And with reporting season around the corner, just imagine the profit opportunities you could uncover before any other investor if you knew how.
That’s why I want to give you the reporting strategy that you could use to read financial results like a pro.
Have you ever caught yourself dreaming of a trip to Spain in the summer, that brand new set of golf clubs, or even the holiday home down in Cape Town you've always wanted?
Who says they only have to be dream?
Not me.
I want you to have these things…
That’s why today I want to tell you that whatever you're dreaming about, my simple Forex methodology and techniques could help put you on the road to all of this and more!
Join the Vunani Private Clients’ team on the 21st May 2014 when they expose financial myths to their intensive analysis. No financial scuttle bug is safe when these professionals are around. Any bar room stock tips, trading strategy or Investment advice that you need testing, give these guys a call – or at least drop an email!
So join our trading team, who will be either busting or confirming some popular investment myths, including:
• Sell in May - like the soothsayer famously warned Julius Caesar, you need to “beware the Ides of March”, sorry that should have been the Ides of “May” with the sell in May myth.
• As Goes January, So Goes The Year!
• What has happened to Doctor Copper?
• Whether the Santa Clause rally will bring you the financial present you want, or will the Grinch will once again steal Xmas
And then they will show you how to trade them!
Mark Weetman, Vunani Private Clients, introduces you to his Autopilot Retirement Blueprint where he covers retirement life stages and investing using passive ETFs
We've put together the ultimate trading blueprint, and you need to get your hands on it!
In it we’re going to show you:
• How you can spread your risk so blowing your account is never an option
• The money management secrets the world’s elite traders have used for decades
• The exact the tools you need to be using to make the returns once only reserved for professional traders
• How diversifying your trading account could help you survive any market condition
• And much more…
Simply watch the presentation and find out how you can kick-start your trading career with our five step trading blueprint!
Forex is a $5 trillion-per-day market!
That’s an insane amount of money changing hands EVERY day.
And if you know exactly where to look and what to do you can bank fast currency profits…
Vunani Private Client Portfolio manager and well known TV personality Lavan Gopaul introduces you to trading Single Stock Futures (SSFs) on well know JSE Large cap stocks.
Vunani Private Clients introduction to copy trade, original videos available at Zulutrade http://www.youtube.com/watch?v=G3gV4Z3NWgQ and Currensee http://www.youtube.com/watch?feature=player_embedded&v=PEbtYEqkeW4
"Financial intelligence is 90% emotional IQ and 10% Technical IQ.
What determines what we do and who we are, is how we as individuals respond to our emotions".
Robert Kyiosaki
Whether we’re talking about economic confidence or investor optimism, emotions drive the marketplace!
2. Contracts For Difference (CFD)
What is a CFD ? 1
How do they work? Margin & Gearing 2
Why Trade CFD’s? 3
Cost 4
Trade Comparison 5
Table of Contents
3. What is a CFD?
• A CFD is a “Contract for the Difference” . This is an
OTC (over-the-counter) product offered by institutions as
opposed to an exchange traded instrument. The profit or
loss is the difference between the entry price of the trade
and the exit price of the trade.
03 What is a CFD?
4. Exit/Entry Price
The difference between your
entry and exit price is the profit P
on the trade, which can be R
O
generated by either going long F
or by going short I
T
Entry /Exit Price
04 What is a CFD?
5. A CFD is a derivative of the
actual underlying instrument
05 What is a CFD?
6. • The CFD tracks the exact price movement of the
underlying instrument on the exchange where it trades.
06 What is a CFD?
7. • The CFD tracks the exact price movement of the
underlying instrument on the exchange where it trades.
• Underlying instrument categories are mainly shares,
commodities, indexes and forex.
07 What is a CFD?
8. • The CFD tracks the exact price movement of the
underlying instrument on the exchange where it trades.
• Underlying instrument categories are mainly shares,
commodities, indexes and forex.
• CFD’s can be traded both locally and internationally on
most liquid markets
08 What is a CFD?
9. • The CFD tracks the exact price movement of the
underlying instrument on the exchange where it trades.
• Underlying instrument categories are mainly shares,
commodities, indexes and forex.
• CFD’s can be traded both locally and internationally on
most liquid markets.
• CFD’s are traded on the principle of willing buyer / willing
seller.
09 What is a CFD?
15. Gearing
• Is a measure of exposure.
015 Margin and gearing
16. Gearing
• Is a measure of exposure.
• It relates the number of CFD’s that can be purchased for
the same price as the actual stock.
016 Margin and gearing
17. Example
A CFD of a share trading R100 has a margin requirement of
10%.
017 Margin and gearing
18. Example
A CFD of a share trading R100 per share has a margin
requirement of 10%.
That means we need to put down a deposit of 10% to trade
the share
018 Margin and gearing
19. Example
A CFD of a share trading R100 per share has a margin
requirement of 10%.
That means we need to put down a deposit of 10% to trade
the share
So we need to put down a R10 deposit per share that we
want to trade which has a value of R100
019 Margin and gearing
20. Example
That means that at R10 we could buy 10 shares for the
price of 1 on the market (R100).
020 Margin and gearing
21. Example
That means that at R10 we could buy 10 shares for the
price of 1 on the market (R100).
Therefore this stock at 10% margining is 10X geared.
021 Margin and gearing
22. Example
That means that at R10 we could buy 10 shares for the
price of 1 on the market (R100).
Therefore this stock at 10% margining is 10X geared.
Our buying power has been bumped up or leveraged 10
times.
022 Margin and gearing
24. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
024
25. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
• Returns can be generated in both rising (going long)
and declining (going short) markets.
025
26. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
• Returns can be generated in both rising (going long)
and declining (going short) markets.
• CFD’s have a much lower capital requirement (margin).
026
27. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
• Returns can be generated in both rising (going long)
and declining (going short) markets.
• CFD’s have a much lower capital requirement (margin).
• CFD’s utilise leverage or gearing
027
28. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
• Returns can be generated in both rising (going long)
and declining (going short) markets.
• CFD’s have a much lower capital requirement (margin).
• CFD’s utilise leverage or gearing
• Higher risk
028
29. Why trade CFD’s?
• CFD’s provide the opportunity to trade the market on a
short term basis.
• Returns can be generated in both rising (going long)
and declining (going short) markets.
• CFD’s have a much lower capital requirement (margin).
• CFD’s utilise leverage or gearing
• Higher risk
• investors save on not having to pay regulatory costs as in
normal exchange and clearing costs.
029
36. Margin Required for SAB_CFD is 5%
Trade price is R412,00
Deposit required: 5% of R412,00 = R20.60 per share.
Gearing or leverage
Share Price/deposit = Gearing
R412,00/R20.60 = 20
That means we are 20 times geared!