In “Difference Between CFD and Futures” article you will learn about CFDs and futures, their features, risks and advantages, with examples for a better understanding.
Finally, it’s important to mention that trading the futures indexes through CFDs isn’t suitable for all markets and this is due to the associated costs. This is predominantly for short-term traders who target smaller profits. Talking about the DAX index, the ratio between the spread and th...
Difference between Investors and Speculators Is Trading or Investing Gambling? CFDs Suitability in an Investment Portfolio Gearing and Margin Trading What are Initial (Deposit) Margins? What are Maintenance (Variable) Margins? Gearing and Leverage Beware very low CFD Margins Interest and Financing Char...
futures contracts are often used by farmers, producers and other agribusinesses as a way to hedge against potential losses stemming from actual business activities. If producers are concerned about actual prices of a crop dropping before distribution, for instance, they can trade in futures contracts...
When holding a futures contract long, if you do not want to take delivery of the underlying asset, what transaction must you perform? Explain. What is the difference between Operating Income and Net Income? What is operating leverage? How if at all, is it similar to financial leverage? ...
With traditional margin trading you still own the underlying stock (with all the admin and paperwork that this entails) but with CFDs you don’t actually own the underlying stock – you are simply entering into a contract with your broker to exchange the difference between the opening value an...
Which is more risky to own and why? What is the difference between a spot market and a futures market? What is the difference between a "worthless security" and "section 1244 stock"? How is the selling price of the stock determined? What is a stock? What is a share? What i...
A day trade can last from mere seconds to hours, while a swing trade can last from days to a few weeks. Day traders tend to put a lot of capital at risk on any given trade, but they’re looking for a few points (or “ticks,” in futures market lingo) and
To complicate matters, options are bought and sold on futures. But that allows for an illustration of the differences between options and futures. In this example, one options contract for gold on the Chicago Mercantile Exchange (CME) has as its underlying asset one COMEX gold futures contract....
To complicate matters, options are bought and sold on futures. But that allows for an illustration of the differences between options and futures. In this example, one options contract for gold on the Chicago Mercantile Exchange (CME) has as its underlying asset one COMEX gold futures contract....