CMC Markets Trading Week – 5 days to profit promotion

CMC Markets is currently running an interesting promotion where they will absorb any losses the trader make for 5 days if they trade the TIQ AUSSIE200 index.
YOu must sing up before April 30 with $1000 minimum deposit.

http://www.cmcmarkets.com.au/pages/trading-week

CFD Trading in US – IG launches NADEX

CFD trading is still not available in the US due to the strict regulations that prevents marketing of derivative trading to retail investors.
Howver , IG group has launched a exchange in the US called the NADEX which allows retail traders to access instruments similar to CFDs which provide leverage and opportunities to go long and short.

THe exchange is providing a demo account for investors. Visit the site for more information.
http://www.nadex.com/

GFT Trading Challenge

GFT is running a trading challenge with real cash prizes of up to 50,000 up for grabs.
This is a good way to score extra money while you trade.

http://www.gft.com.au/trading-challenge/index.asp

CFD trading vs spread betting – differences

The key differences between cfd and spread betting are
> CFD trade on price per share while spread betting trades on dollars per point
> CFDs can be traded with no spreads while spread betting markets are run by market makers who palces spreads between the buy and sell price
> no expiry on CFDs
> CFD contracts is a holding in the underlying which entitles the holder to dividends.
> CFD contracts are financed and hence will require explicit interest payments. Spread betting contracts have the financing cost built in the price.

CFD or Margin Loans?

CFD trading in some ways achieves the same things as a margin loans.
It allows to gear into shares to supercharge your profits or losses.
While CFD trading tend to be short term in anture margin loans are used for buy and hold investments.

One interesting difference between the two is the interest rates on finance. The interest rate on financing a long CFD positon is RBA cash rate plus 3% this is around 6.75%. This comapres to 8.55% on a margin loan. As you can see the differential is quite high so this is one advantage that CFD will have over margin lending.

CFD Trading in US – Portfolio Margin paving the way?

I never really understood why US residents cannot access CFDs. CFDs are just like any other derivatives, why someone can buy and write options which are arguably much more complex but not CFDs is puzzling. However, when I learnt that the conservative margin requirements for margin trading in the US are regulated and resulted from the stock market crash in 1929. However, in recent times a new form of margining has been approved referred to as Portfolio Margining which allows clients to trade on margins that are significantly lower than 50% intital margin as is regularly required. This gives another reason why it does not make sense that CFD trading is not available to US residents.

Will this pave the way for CFD to take hold of US as well?

City Index CFD

City index CFD is offering 0% commission for CFD trades throughout June 2008.

Conditions Apply.

Visit their website for more details.

http://www.cityindex.com.au/

CFD – Emissions Trading

With the amount discussions going on around emissions trading, will CFDs experience another level of growth as a result of the hedging demands from carbon emitters?

Will emissions become tradeable like other commodities?

Will follow up with another post once i do more research on this.

CMC Markets Understanding volatile markets – Free Education Seminar

CMC as part of their series of education seminars is providing a free seminar on understanding volatile markets. People who register for the free seminar will receive a free copy of Real Traders II by Eva Diaz.

http://www.cmcmarkets.com.au/en/content/education/education_seminar.jsp

FP Markets Commission Free Trading

FP Markets is offering commission free trading when you present a contract note from your broker between 11 Feb and 11 March 2008.

Go to their website for more information.

http://www.fpmarkets.com.au/comm_promo.html

 
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