Since contracts for difference (CFDs) require a fair bit of legwork from your CFD provider, the fees are slightly more complicated than ordinary brokerage. In this video, Simon Brown explains the transaction fees charged and how your CFD provider pays and charges interest.
Stop losses are an important part of risk management when trading any instrument. They become especially important when you trade contracts for difference (CFDs). In this video, Simon Brown explains how a guaranteed stop loss can put an absolute cap on your potential loss.
To protect you from losing more money than you have, some CFD providers offer limited risk accounts. In this video, Simon Brown explains how these accounts limit how many times you can gear your portfolio to protect you from losing more money than the deposit you paid to open the position.
Different contract for difference (CFD) providers have different methods of dealing with dividends, which will have implications for your tax liability and profits. In this video, Simon Brown explains why the dividend receiving date might not always be clear when you trade CFDs and how dividend withholding tax could affect your planning when trading CFDs.
In this video, Simon Brown explains why it matters that you opt for a registered CFD provider that has a proven track record and always trades the underlying asset when you place a trade. He explains why international and regional compliance regulations matter and how to ensure your CFD provider adheres to all of them.
Unlike ordinary share investments, you can lose more money than you start out with when you trade CFDs. In this video, Simon Brown helps you understand the risks involved in CFD trading. He also discusses counter-party risk and how that should affect your CFD trading choices.
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.
CFDs are a way to gain exposure to the price movement of an asset without buying the asset. This allows you to trade CFDs with less capital, but it’s important to understand what your exposure is and how margins work with CFDs. In this video, Simon explains the relationship between exposure and margin.
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