Options when Trading

Options are financial products giving you the ability to trade on a market’s future value. When an option is purchased, a premium is bought for rights to trade any market at set prices. This is to happen before the expiration date reaches. Options are also the same as futures in this regard. However, unlike futures, options do not come with a trade obligation, so you don’t have to if you don’t want to trade. For example, if gold sells at $1300 this entire week, and the price hits $1325, you can choose to exercise the options you have to purchase Continue Reading →

CFD Trading – Understanding The Risks Of CFDs

Contracts for differences (CFDs) are contracts between a buyer and a seller. The two parties agree to exchange the differences between the price of an underlying asset at the opening and closing of the contract. This is where the form of trade derives its name. CFDs are a type of derivative. This means they get their value from their underlying assets. So those who tease CFDs don’t trade any assets directly i.e. they don’t buy or sell the assets. They simply speculate on the price movements of the underlying assets. CFD contracts are usually settled in cash meaning that no Continue Reading →

CFD Trading Strategies

Trading CFDs is a relatively new activity gaining lots of interest among forex traders. CFDs are derivative products. Before entering into the trade, the trader must sign a contract between you and your CFD broker. The agreement allows the broker to pay the trader the opening position and the closing amount difference. CFD trading is a complex and highly leveraged product. However, it boosts your trading portfolio by investing minimal capital. Your work as the trader is to speculate on the market value of the price, while your broker does actual trading. One of the most attractive features of CFD Continue Reading →

How CFD Investors Profit from Currency Volatility

Contracts For Difference (CFD) is a method of trading where traders buy and sell assets without having to own the asset. CFDs work by opening up agreements with brokerages or other trading institutions and committing money to the contract. Here, you promise to buy or sell a particular asset at a specific price. To do this, you must pay something called a “margin,” which is essentially your down payment on the deal. The margin size will vary from brokerage to brokerage and can be as little as 5% of the total amount you’re putting in for your contract. Of course, Continue Reading →

Making Smart Investments Through Fundamental Analysis

Stock prices are subject to change almost every minute of the day, this is why investors need to be keen and observant of the various trends within the stock market. Every investor should spend time in some in-depth research and use their findings to forecast possible trends within the market. Fundamental analysis looks at various factors that impact future stock prices. It mainly focuses on measuring the intrinsic value of a share, as a way of evaluating securities. A lot of data has to be analysed to determine the value of the security. Some of this data includes financial statements, Continue Reading →