One of the core differences about contracts for difference (CFDs) compared with some other financial products is that there is no expiry date. Single stock futures, for instance, expire every quarter. So with no expiry date, when you trade CFDs, you pay a daily financing charge. So how is this funding calculated? Let's take a closer look…
What is funding when you trade CFDs?
When you trade... ››› 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
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