If you want to start trading, single stock futures are one way to do it.
Single stock futures are derivative instruments that leverage the underlying move of a share. This leverage means you have the potential to make substantial gains on a tiny movement in a share price.
Not only that, you can also use single stock futures to benefit from a falling share price.
But what exactly are sing... ››› more
Silver has underperformed for the past few years. To say the least, its performance is erratic.
Silver has the potential to make traders big profits. But given its recent track record, it can also disappoint traders.
So taking a look at the fundamentals, what are the reasons behind buying silver?
Let's take a closer look…
Reason to buy silver #1: China is running out of silver
... ››› more
“Trading is nothing more than gambling!”
“Trading is like a casino where the house always wins!”
These are a just a few things my friends used to tell me, when I started trading.
But that's when I told them, they have to change the way they look at things when it comes to trading the markets
You see, my friends didn't have the tricks and tips to think like a casino. Instead, th... ››› more
If you want to give trading a go, you'll find that there are a wide number of different derivatives you can use.
Contracts for difference (CFDs) are a popular derivative. So what makes CFDs different from some of the other derivatives out there?
Let's take a closer look…
CFD difference #1: Expiry date
CFDs have no date of expiry. This makes them different from the likes of single ... ››› more
If you start delving into trading, you'll come across the term ‘derivatives'. So what exactly is a derivative? And what makes a derivative different from buying shares? Let's take a closer look…
What is a derivative?
A derivative is a financial instrument that gets (derives) its market value from the value of another security. This security is the underlying asset, Gareth Stokes in Fe... ››› more
I spend the better part of my day doing research, sifting through broker reports and analyst presentations.
And after years of researching the markets every day, one thing has always stood out to me:
In all these reports and presentations, you hardly ever see the word SELL!
You'll see plenty of buys, accumulates, adds, holds and maybe even a switch… But no sells.
Don't believe me? Ta... ››› more
For the last year and a half, the retail sector has been on one heck of a roller coaster…
One month you see it go up 15% and another month it drops 15%.
But finally, it's chosen a direction!
In fact, the chart tells me that we could see the Retail Index go up over 21% in the next few months.
JSE-General Retailers next stop is at 78,000 thanks to a flag formation!
The JSE-Genera... ››› more
I was scouring my charts yesterday while eating some honey comb toffee.
Anyway, while I was enjoying this sweet treat, I thought of taking a look to see how the sugar chart is doing!
I opened the chart and it was my lucky day. I saw a profit opportunity lining up before my eyes.
In fact, I expect sugar to go up 7.8% in just a few weeks, but we don't have much time!
Let's get straigh... ››› more
You might have heard the term agricultural commodities bandied around. What exactly is an agricultural commodity? How do investors trade them? And can you trade agricultural commodities in South Africa? Let's take a closer look at the ins and outs of agricultural commodities…
A definition of agricultural commodities
Let’s start with a quick look at what a commodity is. A commodity simply d... ››› more
You may have noticed there's a difference between buying shares and trading derivative. Derivatives include financial products like single stock futures and contracts for difference (CFDs). Buying shares and trading derivatives is definitely not the same thing. So what exactly is a derivative? And how do derivatives differ from shares? Let's take a closer look…
What are derivatives?
A der... ››› more
There are a selection of trading products to choose from. In South Africa, the most common products are single stock futures, contracts for difference (CFDs), spread trading and options. All of these financial products have one thing in common: They all involve gearing. Gearing is both an advantage and a disadvantage. Let's take a closer look at how gearing work with derivatives…
Traders u... ››› more
You've done your research and have decided that you want to trade single stock futures. Before you can even think about putting a trade on, you need to have a trading account with a futures broker. If you already buy and sell shares through a stockbroker, there's a chance they may also provide this service. If not you're going to have to find one. Read on to find out how…
Trading futures w... ››› more
There are a number of different financial products out there to trade. If you opt to trade single stock futures, there are benefits. These benefits all relate to the futures contracts used when you trade futures. So what makes that advantageous? Let's take a closer look…
Futures contracts are interchangeable
Futures contracts are standardised. It’s this trait that makes them interchange... ››› more
Contracts for difference, or CFDs, are over the counter derivatives. They trade through a bank or company providing CFD trading rather than an exchange. By trading CFDs you agree to exchange the difference between the open price and the close price of the contract with the bank or company providing CFD trading. So why should you think about trading CFDs? Let's take a closer look…
Benefit #1: ... ››› more
Contracts for difference (or CFDs) fall into the derivatives category. This simply means they derive their value from something else. For example, a Sasol CFD ‘derives' its value from a Sasol share. So what exactly is a CFD? And what can you trade with CFDs? Let's delve a little deeper…
What is a CFD?
Firstly, CFDs are over the counter (OTC) derivatives. This means they don’t trade on an... ››› more
When you put your money to work in the stock market, investing in shares and unit trusts isn't the only way you can make money. You could opt to trade derivatives. Trading derivatives isn't for everyone. Derivatives carry a lot of risk. This is why they offer you the potential to make large profits in a short space of time. So what exactly is a derivative? And how do derivatives work? Let's take a... ››› more
In 2002, there were 3.3 million cars sold in China. It took steel, copper, and other raw materials to build each one. It took crude oil and its derivatives to keep them running.
In 2012, there were 20 million cars sold in China. That's a huge 500% increase in just 10 years. And when you compare China's car market with America's, you can see there's a tremendous amount of growth ahead...
Ameri... ››› more
Contracts for difference (CFDs) give you the opportunity to make big gains on small rises and falls in a share price. If you fancy trading CFDs, then the first thing you need to do is find yourself someone to trade them through. Read on to find out how you can get started trading CFDs…
Contracts for difference (CFDs) are over the counter (OTC) derivatives, the team at FSP Invest in The Ultimat... ››› more
The US-based digital currency startup Coinbase now handles transactions for more than 19,000 businesses and 750,000 individuals. As a result, Coinbase holds many bitcoins in its own wallet… Thereby exposing itself to the risk posed by Bitcoin's price volatility. And just like any other company whose profitability depends on the main commodity they trade in… They've found something that could p... ››› more
By now, you've heard stories of people becoming ‘Bitcoin Millionaires' overnight.
You've also heard stories of people losing fortunes over the virtual currency…
And you might think it has to do with the luck of the draw, but you couldn't be more wrong.
You see, there's a science behind Bitcoin investing. Just the same as with shares, bonds or derivatives…
Think about it.
Wo... ››› more