CFDs can be used to bring stability to a long-term portfolio by way of hedging. They can also help you leverage your long-term portfolio to get more price exposure to the shares you love by implementing a controlled gearing strategy. In this video, Simon Brown explains how useful CFDs can be in a long-term portfolio.
Usually, we invest in shares because we expect the price to go up. Derivative products like CFDs allow investors to make money from falling share prices. In this video, Simon explains the difference between “long” and “short” positions and how they can be used in a CFD portfolio.
In this video, Simon Brown explains how CFDs can be used to gear a portfolio. He explains the relationship between exposure and margin and the risks involved in taking a geared position. He talks about how changes in liquidity, volatility, position size or share price can lead to margin changes.
