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CFD Day Trading

Wed, 01 Dec 2010 10:43:29 +0000

In simple terms CFD Day Trading means buying and selling security or stock in the period of one day. This is done so that one can be able to leverage a much bigger position that would give them room to be able to gain returns from the little changes in price. It is becoming increasingly common for people around the world to look for the most lucrative business deals. This necessity has led to the birth of a great enthusiasm about CFD Day Trading. As a matter of fact, there are very many reasons why people are indulging in CFD day trading more and more. However, there are 5 very important reasons why these people seem to prefer the CFD day trading to any other sort of trading.

1. The Rates of Commission are quite low

For day traders, it is quite appealing that the commissions are really low. As a matter of fact, in many of the common CFD platforms, there are index CFDs which are generally known to be rather free of commission. This simply means that while one is involved in the CFD day trading, they will have ability to benefit from the speedy processes along with commendable liquidity for zero brokerage. One might imagine that if they are trading many CFDs, say 100, they would somehow have higher brokerage but the brokerage remains low.

2. There is no need for the overnight financing

Many people would ordinarily prefer to trade during the day because for starters it is more ideal. With night trading, some sort of financing rate would be imposed on the CFDs. In most case the rate would be a cash rate of about +2%. Trading during the day helps one to keep away from the CFD financial rates is by making sure that you take part in CFD day trading and make sure that you close your position just as the trading day is about to end.

3. CFD Day Trading is hungry for ‘activity’

With CFD Day Trading, there is a great desire for ‘action’ and since the people are involved in short term engagements, it becomes beneficial to them if the stocks move faster. It is useless if the stocks are simply immobile and as such when the markets are very vigorous and there is a lot of activity, the day traders who are more into short term projects will earn quite great profits from the quick and successive intraday movements.

4. With Day Trading, its all about information and personality

One other benefit that the day traders get during the CFD Day trading is that they actually hold the key to their own success. In the business of making profits, one’s desire to succeed will almost always get them close to their goal. As long as they can have more information, knowledge and tools than the broker, the day trader is bound to make substantial headway as long as they can have qualities of greed and fear well controlled. Apart from that, it is important in CFD Day Trading that one’s personality and psychological edge are used to one’s advantage.

CMC Markets Trading Week – 5 days to profit promotion

Thu, 22 Apr 2010 12:03:27 +0000

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

Sat, 27 Mar 2010 02:17:38 +0000

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

Thu, 11 Feb 2010 10:22:05 +0000

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

Tue, 19 Jan 2010 12:33:45 +0000

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 Trading in US – Portfolio Margin paving the way?

Wed, 17 Sep 2008 11:29:45 +0000

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

Fri, 30 May 2008 10:09:52 +0000

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/

CMC Markets Understanding volatile markets – Free Education Seminar

Tue, 12 Feb 2008 11:42:19 +0000

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

Mon, 11 Feb 2008 10:32:27 +0000

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

The Trading Game

Sun, 27 Jan 2008 02:32:13 +0000

This is an interesting idea. This website runs a CFD trading game which mirrors the real market but lagged. This will allow traders to test their skills before they use real money. http://www.tradinggame.com.au/