Contracts for difference with Forex

CFD(Contracts for difference) trading is about ‘margin trading’, or buying not ownership of stock but ‘trading rights’ on the stock by putting down a fraction of the price (i.e.,10%) holding it for short term, hours, days or weeks, and selling it at a profit when the market rises.

Easy? Yes and no. The cautionary is that like all speculation with stocks and shares, only money that you ‘can afford to lose’ should be used. Having said that, with the right systems, good nerves and attention, it is very feasible to make a lot of money. A CFD being a ‘derivative’ of a stock holding is a separate entity from Forex which can also be traded in the same manner but has some regulatory differences.

“For example, A client wants to purchase £10,000 worth of HSBC shares, the margin requirement would be only £1,000. If HSBC share value increases to £10,500 a £500 profit on the deal would equate to just 5% return if you traded the shares outright; compared to a return of 50% on a CFD.”

Interested? You should be. Get started now with a free ‘demo’ account from AGM trader. I've tried their charts and they are pretty damn hot. The benefit here is that you open your account in US dollars which means you can take advantage of the recent strength of the Rand.

Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za

Contracts for Difference

Stock exchange volatility has caused havoc on the world markets. Is a another crash inevitable? Not so say the experts. Lessons have been learnt from previous episodes in the last century, albeit a bit late. Governments around the world have rallied to shore up the markets, tighten regulations, and curb unjustified bonuses. Renewed confidence in the markets can be to the advantage of the shrewd investor who has a long term, or even a short term view.

CFD’s (Contracts for difference) offer excellent short term profits compared to long term share holding at much reduced risk. How does it work?

While the world’s traders and investors reel under the shocking losses, AGM trader has come up with a risk averse, innovative way to handle your money and make fortunes in the present volatile market.

Follow the details in the follow up posts to come as we look into CFDs and Forex. AGM Trader has come up with an innovative way to help beginner traders to get started in the game of trading. What has AGM Trader done?

Financial & Investment Workshops, ebooks & financial freedom @ www.newsweek.co.za