Q. “I see FSP Invest is offering a Beginner CFD Trading Webinar at the end of this month. I am interested to join but I have one very important question. What is a CFD and how is it different to buying shares?”
A. In short, A CFD (Contract for Difference) is a financial derivative instrument where you’ll enter into a CONTRACT at one price, close it at another price FOR a profit or ... ››› more
Q. “Hi Timon, I read the weekly article where you expect the JSE ALSI40 to rally.
My question is, if Moody's does eventually decide to downgrade South Africa to junk what would happen and when is the next grading?”
A. The next possible downgrading for South Africa would happen as soon as March, if South Africa fails to come up with a plan with “Credible debt-stabilisation”.
... ››› more
Contracts for difference (CFDs) provide you with a great way to trade shares and indices.
They appeal to many traders as the pricing is very transparent, they're quite simple to understand, and fees and charges are much less than buying shares outright.
To really get to grips with trading CFDs, there are a few key terms you need to understand.
Read on to find out what these are…
T... ››› more
One of the benefits of trading contracts for difference (CFDs) is you can potentially profit from the drop in the price of a share. This is known as going short or short selling.
The problem with shorting a share is that if it doesn't go your way, it has the potential to keep rising, increasing your losses.
So what happens in you put a short CFD trade on and it goes wrong?
Read on to find... ››› more
By trading contracts for difference (CFD) you can take advantage of trading on margin. This translates into gearing.
Get a trade right and gearing multiplies your profits.
Let's take a closer look at how this works when you trade…
How CFD trading works when you go long
Let’s say you’ve been analysing Company ABC and you’re sure the share price is going to rise. Instead of go... ››› more
One of the advantages of trading contracts for difference (CFDs) is you can put on short trades if you think a share price is going to fall.
So how does this work?
Read on to find out…
The workings of a short CFD trade
After conducting some analysis, you think shares in Company ABC are due a fall. So you decide to put a short CFD trade on.
Let’s say that Company ABC is tradin... ››› more
Trading contracts for difference (CFDs) gives you an opportunity to profit from the ups and down of shares and indices.
But before you begin trading, you need to ensure you're ready. And once you start trading, you need to keep some key things in mind.
Read on to uncover the top tips to keep you right when you trade CFDs…
Before you trade CFDs, make sure you tick these boxes…
Th... ››› more
Contracts for difference (CFDs) offer you one way to trade the stock market.
Many traders like CFDs as the pricing is very transparent with daily funding costs, they can easily hedge their current portfolio and they don't have an expiry date.
If you want to trade CFDs, are you ready?
CFDs, along with other trading products, are geared products. This comes with high risk, so it's crucial y... ››› more
If you're looking for a way to gear up your potential profits, then trading contracts for difference (CFDs) may be just for you. So how does trading CFDs work? And how does the gearing element of CFD trading boost your profits? Let's take a closer look…
Putting a long CFD trade on
The best way to see how CFD trading works, is to see them in action. If you want to know more about the basics o... ››› more