CFD Trading: Learn how to trade CFDs (Contract for Difference)
- Articles
- Derivatives
- CFDs
You've heard how Catherine Davey turned $13,000 into $30,000 in 3 months and how a former school teacher, Will Kraa pulled in $65,000 in one week, both by trading CFDs. So what are CFDs and is it really possible to achieve these superior returns?
CFD’s, or Contracts For Difference, is one of the fastest growing investment products in Australia. Large investment firms and individual traders alike are flocking to this highly leveraged means of trading assets. CFD’s have been in existence since the 1990’s, and as ‘over-the-counter’ investments in Australia since 2002. In late 2007, the Australian Stock Exchange (ASX) gave increased legitimacy and availability by creating exchange traded CFD’s.
But what exactly are CFD’s? What cautions should be heeded with this relatively new trading vehicle? What should an investor know before trading with CFD’s? This article series will consider the following aspects to CFD’s:
Just because many investors are profiting and trading this type of investment does not mean that you should jump in head first. You will need to exercise due diligence and carefully read the following articles to determine if this highly leveraged speculation is something you should include in your trading portfolio.
Without further ado, let us find out what sort of engine is under the CFD hood.