Why CFD Trading is Popular in The Trading Community ...
Why CFD Trading is Popular in The Trading Community ...
What is CFD Trading and How to do it?
CFD Trading What is CFD trading? Capital.com
Why CFD Trading is a Worthwhile Investment - The Frugalpreneur
CFD Trading Introduction - What Is CFDs Trading
Exactly why CFD Trading System Makes Passive Money
These days, a lot of people increase their profits by performing in the CFD trading market and this is by far one of the best ways of ensuring financial security or even more so, increasing your wealth. In order to become an expert CFD trader, you must start off by covering the basics and make your way through the most efficient CFD strategies. You are most likely to succeed in this challenging environment if you gain understanding of the risks and benefits of this complex mechanism. If you have no idea about how the CFD market functions, the first step you take should be towards trying to uncover the secrets of this complex trading mechanism. Study hard and observing all aspects related to the CFD market will take you one step closer to mastering the efficient trading strategies. All CFD traders’ goal is to try and predict the next market trends, but this is not actually possible without a clear understanding of this complex mechanism. Studying past trends of the market will surely be of use to people who want to learn their way around CFD trading. To this purpose, you should collect the important data and try to uncover patterns and learn from other people’s mistakes. Moreover, you should always stay connected to everything that happens in the world as the currencies are highly influenced by economic and political events. A beginner in CFD trading should always try to minimize the risks and remain on the safe side. It is not wise to take chances and risk losing everything right from the start if you don’t have the proper knowledge and know the efficient strategies to increase your chances of success. Many people push their luck blindly, without considering the consequences. You can also choose to resort to a service provider that will ensure you are getting the right information and access to important resources to use in your best interest. You are also provided with the assistance and guidance you need for mastering all the secrets and mysteries of this complex mechanism. CFD trading is a very complex field of activity, moreover because the market trends cannot be predicted. You can win a lot of money and ensure financial stability, but you can lose it all if you don’t have the right resources and knowledge on your side.
CFD Trading Benefits Leave a Comment / Uncategorized / By admin Contracts for Difference (CFD) are attractive trading instruments to many traders. This financial derivative has numerous benefits that draw the attention of amateur and expert traders. CFD trading is very flexible and an efficient alternative to traditional investing. Here is a list of reasons why CFD Trading is popular among traders: No stamp duty A stamp duty is a tax imposed on numerous acquisitions, including selling real estate, cars, and assets belonging to a business. Remember, CFDs give traders the opportunity to speculate on markets without physically owning the underlying asset. Since you do not own the underlying asset, you won’t have to pay stamp duty. Trade in both rising and falling markets Another solid advantage of CFD trading is that traders are not restricted to open in only one position. CFDs are very flexible financial instruments because it can make you trade in both falling and rising markets, allowing you to produce more effective strategies for more profit. Margin Trading One of the most notable aspects of CFD is that you can trade using margin. This means you don’t need to purchase the full value of an asset to open a position, you only need to deposit a fraction of the actual trade size of each transaction. For example, you have a CFD share for $100, if your broker has a margin requirement of 5% then you only have to pay $5 to open the position. Trading using a margin means you can multiply your profit although it is important to recognize that losses can also be multiplied in margin trading. Thus you can lose more than your initial deposits. Hedge Positions CFDs are one of the best hedging tools for traders. If you are anticipating a loss in your current position then you can limit your potential risk by using a CFD to hedge your position. For example, if you have a short position in an asset that is accumulating losses, you can open a long position to balance your losses. The long position will start to gain profits once the prices move in the upward direction. Read More: https://blog.mlnfx.com/cfd-trading-benefits/
CFD Trading vs Options Trading - Which is Better & Why?
Are you confused between CFD trading and Options trading? Don't know which has better advantages and why? Want to choose the best among the two? Enough. You can get the complete comparison of CFD vs Options trading here. Please visit the WesternFx official website to get in touch with the expert Forex brokers.
I'm trading for 11 months with pretty good success. I never traded metals and forex before, just stocks. Today when gold started to consolidate at the last hour, I decided to scalp short it with a large amount, so I opened 100 lots. I haven't realised, in forex 100 (lots) doesn't mean "100 pcs", because I used to stocks and I went full retard without knowledge. Seconds later, I realised it means 10 million dollars (1 lot = 100.000, and I had 500x leverage). It moved up a bit and immediately I was down £4000. I scared as fuck and rather than closing the position quickly I hoped maybe I could close break even. The market closed, and I waited for the Asian session. The gold popped like never before, and I lost all my life savings (£55000) in less than two hours. (including the 1-hour break between sessions). If I count that I lost all my earnings as well, I lost around £85000. Here is the margin call https://imgur.com/a/XY5m4ZA https://imgur.com/a/VSgmCSs https://imgur.com/pRWl5g9 IC Markets closed my position partially in every 1-2 minutes until I shut it myself at £35. You know the rest of the story. I'm depressed, crying and shouting with myself. Yes, I know I was stupid, thanks. I just wanted to share this with you. Edit: WOW THANK YOU, GUYS! I haven't expected this, but you help me. Many of you asked the same questions, I answer it here: - I live in Europe, and we usually trade CFD's, not futures. - Currency in GBP. - As you can see, this account made on IC Markets. They not just allowing you a 500x leverage, it's the default. - You can ask me why I went against the market. Because gold is way oversold? Because I expected institutions would sell their shares before gold is hitting £2000, leaving retails hanging there. Also, as I said, I wanted to scalp, not riding the gold all the way down. If I had a loss of £100, I would close the position immediately. But when I saw the £4000, my heart is stopped, and my brain just freezes. - I went for a revenge trade with my last £2k, and I don't have to say what happened. I uninstalled the app, and I give up trading for a while. - Again, in the past months, I was cautious, I lost a significant sum in March, but I managed to recover. Made consistent gains, always with SL. This is just an example of how easy is to fuck up everything you did. - I didn't come here for some shiny digital medals. I can't tell about my losses to anyone who I know in real life. I would make a fool of myself. - Anyone who attacking me that it is a scam. Well, think what you want. I feel terrible and the last thing is to answer all the messages saying "You fucking karma whore". I don't give a shit about karma.
Plain english warning about CFD trading, just something I wish someone had told me
tl;dr - trading CFD's is the equivalent of drag racing your drunk mate down the freeway into oncoming traffic. No self respecting adult would bother with them, CFD's are for cocaine-snorting thrill-seeking morons (like me apparently) who have no respect for risk management. Don't gamble with your savings. What are CFDs CFD's are 'Contracts for Difference'. Very simply, if you have a trading account with the right permissions you can trade in CFD's. Why are they dangerous Because say you trade $250, on a normal trade (ie stocks etc) if the price falls by 10% you lose $25, which sucks but isn't world ending. CFD's are NOT like that - they are 'leveraged' which just means that if you put up $50 your exposure is many many many many times larger than that EXAMPLE You buy 50 contracts on a stock that is trading at $100 a share.The stock then drops $10 in value.Your exposure is (50 * 100) = $5,000 BUT because your 'margin' is only 5% of that, the initial amount you put up is a mere $250. So to illustrate: Stock Trading Initial Investment - $250 Value drop - 10% Loss - $25 CFD Trading Initial investment - $250 Value drop - 10% Loss - $5,000 Closing remarks These things are illegal in the US for a good reason. CFD's are for suckers, don't listen to anything that you hear to the contrary. EU regulators say that 76% of CFD accounts lose money. Let me say that again, 76% of these things lose $&*#ing money. If the odds at the casino were 1:4 there is no fkn way anybody would go. When you trade CFD's you are essentially just gambling but with WAY WAY worse odds.Cited: https://www.iexpats.com/76-of-cfd-traders-lose-money-on-their-deals/ You can't make long investments with CFD's, they aren't a long-term strategy and they are not part of ANY investment strategy with a reasonable risk profile. Please don't make the mistake I did and get sucked into trading them, it's stressful as hell and it is pure bravado driven bullshit. Stay safe out there folks, times are nuts Edit 1: Formatting got stuffed up
I have a post that I explained how in etoro you don’t own the stock what so ever but u just own a cfd contract even if you don’t use margin In this post I’ll explain a little bit about how etoro pays dividends on your stocks even tho you don’t own them and the dangers of trading on this kind of brokers “””””””””””””””””””” As I said in one of my replay , the underlying asset is a cfd contract (cfd contracts are decaying assets ) , a cfd contract doesn’t grant you any ownership over the real stock. Let me explain again . In one of the legit brokers I use , they have this program that if you subscribe in , you give the broker the permission to lend the stocks in your portfolio to other traders who want to short sell the stock , like I have 5 apple stocks in my portfolio, if I’m signed up to the lending programme in this legit broker , then they can take my 5 apple stocks and lend them to someone who wants to short sell them . 1 - by law I’m not paid dividends on those stocks that they borrowed from me , but the borrower is paid the dividend cause he is the owner now as long as he is borrowing my stocks . 2- said broker will pay me 50% of the interest that he charges the short seller 3- the broker will still give me my dividends equivalent but in a form of capital gain ( etoro does pay u dividends equivalent from the commission that he charges on his platform , but not real dividends, ) This might sound complicated but again this is way a broker like etoro can tell their clients that they are buying the asset which in-fact they are not , it is legal but it is a form of word play , the real danger is if etoro goes bankrupt or for any reason doesn’t wna does his part of cfd contract deal then they tottaly can , they don’t do it upfront , but they can halt trading on a certain stock , just an example , a real legit broker will never halt trading on a stock unless the exchange itself halt trading and no one in the world can buy the stock , in etoro you will find that you can’t sell a certain position or open one , while at the same time other traders on other platforms are happily buying the same stock and selling it , this is one form of etoro saying “ I don’t want to keep up to my words that and exercise the cfd contract “ Somethings I said are a bit complicated but etoro banks on the low experience and innocency of their clients . They actually blocked a popular investor called “harshsmith” because he was allegedly scalping stocks , and he have 2k copiers , so every 1000$ he made is 2 million $ that etoro had to pay to all his copiers , they might not allow scalping and that’s their law but keep in mind , if they are a legit broker they would be happily letting him scalp cause he and his 2k copiers are paying commission, and commission is how they make their profit as they say (big lie , they make it from your losses ) , then why block and profitable popular investor with a lot of copiers paying commission? Cause they are paying him his profit from their pocket and not the real market , I don’t mind them having their own non scalping law , but why have it if your legit ?! More scalping is more commission for the broker right ? Unless it is not a legit broker such as etoro Hope this helps
[Discussion] Theory for why the SF1000 is this bad, and why Binotto does NOT deserve to be fired just yet
Hello everyone, I'm back This time instead of ranting shitting on Ferrari, I've had a week to think and I'm just going to write down some thoughts I have about the current Ferrari situation, and I'm curious to get everyone's opinions on this. What else can we do before the race weekend starts right? The question on hand is very simple. 'Why does this year's Ferrari suck this bad?' In the comment section of this post we discussed reasons for why Mercedes has dominated just about every regulation change, but we didn't talk in depth about Ferrari. Now, I'm not talking about the general "Why is Ferrari not winning titles?" question, because that question has been answered many times over. Ferrari is inefficient, don't have the best engineering talent (Merc poached just about the best from every team over the years), and arguably don't have the corporate desire to actually win in the same way Mercedes does. I'm more curious about the pace (rather lack thereof) of the SF1000. Yes, we know Ferrari as a team is not as well run and organized as Mercedes, but how could they have built a car this bad? A car that barely makes it into Q3. Right off the bat, let me fully and entirely acknowledge that yes, the size of the pace drop is purely due to the illegal as fuck engine being neutered by the new monitoring initiatives. According to some sources, the Ferrari engine is allegedly ~40-45HP down from the Mercs and ~10-15 down from Renault and Honda. There is absolutely zero doubt about that and anyone who's still stuck on the "high drag tho" reason is just fooling themselves. All Ferrari engine teams don't just suddenly eat crow over a winter. However, questions about the SF1000 popped up way before it ever hit the track. It seemed like the design team simply stuck some downforce generating bits on the SF90 and called it a day. And then the same car showed up to Austria, almost 6 months later than the car unveiling. Ferrari have a history of throwing the towel early to work on future regs. Take a look at the 2017 Ferrari. They did exactly that. They completely abandoned the 2016 car to focus entirely on the 2017 car. And they succeeded by any metric. It was a massive step up in performance, giving them a car capable of winning the title (Yes the TP was Arrivabene and we love attributing the entirety of the car's performance to the TP, but pretty much the entire team from 2017 is still at Ferrari today. Including Binotto himself. So the Ferrari aero team nailed that aero reg change. (You could make the argument that actually it was James Allison designing that car, but I'm not as sold, as he left very early. Either way, basically the rest of the team bar Allison remained) You're Ferrari. You lost 2019. Hell, you lost every single season during the hybrid Era. Internally, I'd bet Ferrari is convinced Mercedes is winning because they had a head start on 2014 (rather than due to org structure advantages) and have subsequently been 2 steps ahead of everyone else (and there's actually solid evidence this is indeed the case. Merc is known for starting development on future cars insanely early because it's clearly they're going to win by mid-late season usually). Considering all of the above, there's also one year of regulations left, in the final year of no budget cap spending. Wouldn't it make perfect sense to throw absolutely everything at the new aero regs? To get the kind of early Mercedes-style advantage which carries through multiple seasons? And there's some evidence Ferrari did exactly that. The SF1000 is literally the 2019 car with a few extra bits of downforce attached. I know Ferrari is a meme, but they're not that stupid. It would also explain why they seem so lost currently. Another key point is that engine development costs are NOT included in the future budget cap. Which means, in theory, Ferrari can go balls out on 2021 aero for one season, and have time to catch up with the engine later, as it's not affected by the budget cap. I know the staff and facilities are already in place so it's not like they pulled engine staff onto the aero team, but they may have received priority in other ways. (An aside question, I understand FIA is limiting the number of engine upgrades a team brings, but not the size of the upgrade right? How would this help save costs if a team can just spend the same amount of money on the engine and then bring a bigger update at season start?) Now, I have no idea if any of this is true. But logically speaking, this seems to fit the events that we know happened well. In chronological order-
Ferrari decides to throw absolutely everything at the new 2021 (at the time) regulation overhaul
They learn their engine will be castrated
They design the SF1000 by adding downforce (whether they knew their engine would be neutered doesn't really change anything). At this point Ferrari has no intention of allocating any resources towards the SF1000, as evidenced by the fact that they didn't bring any upgrades to Australia, and then brought the same car to Austria some 4 months later.
Coronavirus hits, everything gets shut down. Ferrari learns in the middle of lockdown that 2021 reulations are posponed until 2022.
They suddenly realize they will be racing with this car for two seasons, and scramble to understand why the car was bad during testing. Note that, Binotto said "our concept fundamentally sucks and our direction changed" very late, weeks before the Austrian GP. Why did they wait this long if they knew they had issues in Barcelona?
They scramble to come up with upgrades to the car, which they don't even have ready by Austria. Their pace turns out so bad, they realize they cant limp around as the 5th best team for two years, so switch back to working on the SF1000.
I'll add that this pattern did not appear in any of the other mid-large teams. Yes Corona hit Italy particularly early, but this would have only taken away 1-2 weeks at most from Ferrari relative to the other teams. We also saw that in testing, every other team seemed to make significant progress while Ferrari literally brought the SF90 with a few extra bits. Mercedes, RB, Mclaren brought (relatively) massive evolutions on their previous cars while Ferrari didn't. So to summarize, this is the current position of Ferrari (if this theory holds).
Ferrari have made a LOT of progress on their 2022 car design after dumping all of their resources into the reg change, just like they've done numerous times in the past.
Something fundamentally broken with the current aero design, and arguably the entire aero program. (Aka their CFD program sucks and their designs don't perform on the track like they do in CFD).
Worst engine on the grid
Now what Ferrari really needs to get out of this mess is a re-org to mimic the Mercedes structure. This is the highly political Ferrari we're talking about, so, let's face it, that has no chance of happening. Now, of course, without a doubt Binotto is responsible for this, and probably does deserve to be fired. However, if Ferrari want to turn this ship around their best chance out of this mess probably IS Binotto. CFD issues need to be solved before 2022. And the person/people who are the most likely to solve these issues are the very people who caused them in the first place, because they are the people who best understand them. Binotto is also an engine specialist by trade, so even though he's ultimately responsible for the dirty tricks of 2019, he's the cleanest dirty shirt in the hamper in terms of who might actually put the right pieces in place to fix the engine. Bringing in a brand new TP right now would be a nightmare, unless it's one of their own and no current Ferrari department heads fit the bill particularly well. It's also possible nobody at Ferrari knows what they're doing and they just suck. But to suck to such an extent that spending ~$450 million gets them an SF90 with a few bits of downforce seems extreme even for Ferrari. They've never sucked this bad in history IIRC. TL;DR- Ferrari probably already committed balls deep to the 2022 regs, and even though Binotto is ultimately responsible for Ferrari being as shit as they are now, he's likely their best bet of getting them out of this shithole. Ferrari needs stability. Especially now, with the entire team structure changing due to the budget cap, and this many fires that need to be put out.
Hello fellow retards. I do have an autist question right here. I've recently started trading in CFDs, and to me they seem like 'premium options' (can strike at any price and close at any time/date, whilst still being able to leverage pretty significantly. 'premium' for purchase on trading 212 is pennies) So why do ppl trade in the far more restricted options when these are a thing? Am I missing something here? (live in UK in case relevant) Cheers and happy trading bros!
Why Trade With CFD’s? One of the reasons CFD’s have become so widely used and popular is because of how flexible they are and what they can allow you to achieve in your trading. When using a CFD you can trade on many different global markets. Why a traders chooses CFD trading? The best advantage in CFD will be you could trade it despite having a lower level of capital and that means you need not be worried about the initial funds. As you can find small costs depends on trading it is good for the profit and the investors would rather trade it. The Bottom Line . Advantages to CFD trading include lower margin requirements, easy access to global markets, no shorting or day trading rules, and little or no fees. CFD Trading Offers Flexibility Another key advantage and core reason why many traders are now choosing to invest through CFDs is the flexibility they offer over other, like instruments. CFDs can be taken both long and short, can be opened and closed relatively quickly, and are as a resultant particularly useful in hedging and portfolio building. CFD trading is a simple and straightforward way to invest in markets without owning the underlying asset. They are simple and do not have an expiry date which makes them attractive financial instruments to trade. What are some of the features of CFD?
Trading CFDs is very risky because CFD brokers usually give leverage to traders, however CFDs allow for easy, liquid and low cost trade of many products that would otherwise be quite difficult to ... CFDs are the hottest investment style in the marketplace. They allow a trader to access the markets easily. CFD's are regulated and allow you to trade commodities, currencies, indices and stocks ... Why TradingTeck is the First Choice for CFD Traders? Security, Support, Innovation and Flexibility Everyday experienced traders are moving from futures and forex trading to CFD’s. New traders are learning how easy it is to begin trading CFDs and why it req... Trading contracts for difference (CFDs) is a popular way to speculate on rising and falling financial markets, such as shares, forex, indices and commodities. Learn more about CFDs: https://www.ig...