Videos uploaded by user “TradeCFDs”
Could I become a Millionaire by Trading CFDs?
Millionaire trader? http://www.contracts-for-difference.com/Millionaire-CFDs.html Trading with the expectation of generating a million, or any specific amount is dangerous. If you are focused on a "need" to make a certain amount of money, such as £1,000,000, this may in itself put you at a disadvantage, as it would make you prone to trading in desperation and/or taking too much risk. I'd suggest you take a hard look at whether you're genuinely interested in what causes market phenomena and/or trading itself, and if you are, then focus on that rather than on a specific financial goal; if not, then you might want to reconsider, or else it may substantially contribute to your odds of going broke -- or even indebtedness.
Views: 60908 TradeCFDs
How to Choose a CFD Broker
When trading contracts for difference it is important to choose the right CFD provider. http://www.contracts-for-difference.com/cfds/compare-brokers.html There are a number of CFD providers to choose from, meaning CFD traders have a range of choices, but choice can be confusing. Choosing a CFD provider should come down to a number of considerations other than simply dealing commissions and margins alone although you would be forgiven for believing these to be the most important prerequisites given the emphasis placed on headline-grabbing ultra-low spreads and margins.
Views: 37834 TradeCFDs
Rules, Tips and Secrets for Successful CFD Traders
What do the successful CFD traders http://www.contracts-for-difference.com/ do differently? Some of the rules that successful day traders use are familiar to all traders. Others may be contrary to the common beliefs. Rule 1: Don't follow the crowd Rule 2: Block out other opinions Rule 3: When you're not sure, stand aside Rule 4: Try to avoid market orders Rule 5: Trade divergence between related commodities When trading commodities, watch the 'families': grains, the meats or the metals. When you spot a wide divergence in a group, it could signal a trading opportunity. For example, if all grains except soybeans were moving higher, sharp traders would look for an opportunity to sell soybeans as soon as the grains in general appeared to be weakening. The reverse of this is true also. The traders would buy the strongest commodity in the group during periods of weakness. Rule 6: Trade the opening range breakout This is a good price-direction clue, particularly after a major report. A break out of the opening range may tell you the direction of trading for the day or the next several days. If the market breaks through the opening range on the high side, go long. If it breaks out on the bottom side of the opening range, go short. Rule 7: Trade the breakout of the previous day's range This rule is used by many successful traders to decide when to establish or lift a position. It means never buy until the price trades above the previous day's close, or never sell until the price trades below the previous day's close. Momentum traders commonly use this rule as they believe that the weight in the market is in their favour when they wait for trading to break out of the previous day's trading range before adding to their position. Rule 8: Trade a weekly breakout This rule is similar to the daily rule, except it is used on weekly highs and lows. A break of the weekly range can be seen as a signal of the trading direction for several weeks to come and can therefore be considered a stronger signal. Rule 9: Trade a breakout of the monthly range The longer the period you're watching, the more the market momentum behind your decision. So monthly price breakout are an even stronger clue to price trends and are vitally important for the position trader or hedger. When the price breaks out on the topside of the previous monthly high, it's a buy signal. When the break out is on the bottom side of a previous monthly low, it's a sell signal.
Views: 52698 TradeCFDs
Beware Very Low CFD Margins
Why shouldn't you regard 'low margin requirements' being flaunted as a selling point by some CFD providers? http://www.contracts-for-difference.com/Low-margins.html A characteristic of CFDs is that they have lower margin requirements than other types of leveraged vehicles. Gearing (leverage) is the degree to which an investor is able to make use of borrowed money. Just keep this in mind: The lender (contracts for difference provider) is focused on maximums whereas the borrower (you!) should be concerned with minimums - borrowing as little as you can but still getting bang for your buck. 'Leveraging on trading instruments means compounding risks and may lead to over-leveraged positions if the trader isn't careful.'
Views: 43481 TradeCFDs
How to Day Trade with Keltner Channels
How to Day Trade with Keltner Channels http://www.contracts-for-difference.com/course/cfd-guide.html You can't look at Bollingers without at least taking a look at Keltners. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! I think Keltners are under-utilized yet they can be very useful for us traders. Rather than contracting and expanding so violently like Bollinger Bands do Keltners don't do that and often price will go above or below a Keltner channel for a long period of time because of the nature the formula is derived. You use it in the same manner that you use Bollinger Bands; you sell the High, buy the Low and when you are in a trending environment
Views: 12136 TradeCFDs
What is a CFD?  CFD Trading
An Introduction to CFD trading by IG Markets http://www.contracts-for-difference.com/igmarkets/Igmarkets-review.html Contracts for Difference or CFDs for short are a flexible alternative to other forms of trading. CFDs allow you to trade on whether the price of a financial market will go up or down. CFDs can be used to trade a wide range of markets including shares, indices, forex, commodities and more. What is a CFD? A CFD is an agreement to exchange the difference in value between the price of a contract when it is opened and the price when it is closed. This means that a CFD allows you to profit from the movement of a market when it moves up or down. And as opposed to futures the exposure size is adjustable. So if you want to trade the Dow Jones or forex pairs such as euro-dollar, there are also mini contracts available permitting the level of risk to be controlled at all times. These trading products are ideal for trading short to medium-term views in the markets.
Views: 8185 TradeCFDs
Greg Riba - Former Floor Trader
Greg Riba, a former floor trader interviewed whilst drunk (?) gives some very insightful thoughts about trading and the financial trading industry.
Views: 9527 TradeCFDs
CFDs and Dividends - What Happens?
Do you receive dividends when you hold a CFD position? http://www.contracts-for-difference.com/ This is something that confuses some traders. You'll often hear people talking about dividends being paid on the shares for which they hold CFDs. In actual fact, the situation is more straightforward than if you were to hold the shares themselves, and the basic principles are easy to understand. Net dividends on CFDs are credited to long trades while gross dividends are debited from short positions held at the end of the trading day before the ex-dividend date. Payment is usually credited or debited to your trading account on or around the ex-dividend date.
Views: 30785 TradeCFDs
Frank Crumit: A Tale Of The Ticker (1929 Stock Market Song)
A 1927 song about the stock market. I am sure it is as relevant today as it was then, reminds me of OPES and Tricom. The song was recorded by Frank Crumit and is titled: “The Tale of the Ticker”. Enjoy it. Frank Crumit (September 26, 1889 -- September 7, 1943) was an American singer, composer. radio entertainer and vaudeville star. You want to be a Share Trader? Treat it like a Business http://www.contracts-for-difference.com/course/trading-as-a-business.html
Views: 5037 TradeCFDs
Why is the Volume Weighted Average Price (VWAP) is so Useful for Traders
How to Trade with the VWAP . http://www.contracts-for-difference.com/strategies/Moving-averages-cfds.html If I have only one indicator it would be the VWAP i.e. Volume Weighted Average Price indicator. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Why is the VWAP so valuable? Why is that? The volume weighted average price indicator is one of the most under-utilised trading indicator out there. The VWAP is a moving average but its based on volume so its showing you where more people are engaged and involved. Institutions are looking for the VWAP for several reasons; for one thing some institutional computer algorithms have the VWAP coded into their trading systems; I also know traders are following it. The VWAP reacts to price movements in relation to the volume traded during a given period.
Views: 34151 TradeCFDs
Day Trading with Bollinger Bands
Ok, Bollinger Bands http://www.contracts-for-difference.com/course/bollinger-bands-explained.html these are another nice technical analysis tool to use. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Bollinger bands are based on standard deviation; in other forms they form a band or channel around price. As the price volatility increases the range of the band will incease, as volatility decreases the range of the band will contract. The standard setting is 2 standard deviations either side of a 20-day simple moving average (SMA). Standard deviation is a measure of volatility, so Bollinger Bands adjust themselves to market conditions. When market volatility increases, the bands widen, moving further away from the SMA. During less volatile periods, the bands contract and move closer to the SMA. The tightening of the bands is often used by technical traders as an early indication that volatility is about to increase. Traders then look to trade in the same direction of the developing trend if the bands subsequently diverge (widen) sharply.
Views: 8543 TradeCFDs
Spread Betting versus CFDs Trading
Trading in CFDs is often compared with spread betting http://www.contracts-for-difference.com/compare/cfds-vs-spread-betting.html and it is important to make a distinction between the two. First, let's take a look at their similarities.
Views: 4170 TradeCFDs
Most Reliable Continuation Patterns: Bull and Bear Flags
This tutorial features bull and bear flags , one of the more common continuation patterns on stock market charts - this tutorial will show you how to tell when a share is going to go up, allowing you to make money from shares. First, why should you be interested in continuation patterns? If you can see that the price is already going in a certain direction, why do you need to have confirmation of it? Certainly, continuation patterns are less emphasized than reversal patterns in trading literature. However, they do have a use. If you are already in a trade on the stock, they provide reassurance that the trend will continue and that you can stay in position, expecting greater returns. Also, if you missed out on getting in on the trade at the start of the trend then a continuation pattern is a good place that you can open a trade with confidence, and capture the rest of the move. That said, what are the most reliable continuation patterns? Arguably, they are the flag patterns, which are temporary retracements in a strong trend. For instance, the bull flag pattern occurs in a strong uptrend. It is when the price reaches a high point, and consolidates in a retracement which is slightly downwards. Often you can draw a trendline and channel line either side of the retracement, and these parallel lines form what is called the "flag". After a short retracement, the trend usually resumes strongly. Similarly, you may find bear flag patterns in a downtrend. These can be seen where there is a strong downtrend, which hesitates and retraces back upwards for a short distance. The consolidation represented by this movement against the trend is called the bear flag. It will normally be followed by a continuation of the strong downtrend. Sometimes the flag patterns are also used to give an indication of how far the trend has to go. Frequently, the trend continuation will go at least the distance of the trend move before the pattern. In other words, the pattern occurs in the middle of the trend. A flag pattern will usually last between the one and three weeks, and can be regarded as a pause in the trend. It will usually come after a particularly sharp move in the trend, and is almost as if the price has to catch its breath before charging onwards. It is perhaps because the trend is so strong before the flag that the pattern is considered reliable. It would be extremely unlikely that the trend would reverse after the flag. For confirmation of the flag pattern, you should also look at the volume of trading. You will see a big drop in volume during the course of the flag as the pattern develops. When you come to the end of the pattern, there should be a good increase in volume as the price breaks out. The characteristics of the flag pattern are that it is slightly countertrend, and it can be contained within a pair of parallel channel lines. It is a short-term pattern, and a strong indication that the trend is set to continue for some time.
Views: 11804 TradeCFDs
Trendlines and Channels: How to Draw and Use them for Trading Decisions
Trendlines and Channels: How to Draw and Use them for Trading Decisions http://www.contracts-for-difference.com/course/trends.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN CONTINUE PRODUCING MORE Drawing Trendlines and Channels - Price Action Analysis. Using and Drawing Trend Lines. A lot of people like to use trend lines - many traders like look at their charts to analyse how strong a trend is. We all know what a trend is. But how do we analyse a continued trend and how do we pick levels to trade?
Views: 10588 TradeCFDs
Scaling Into A Trade As It Goes In Our Favour:  Pyramiding into Winners
Scaling into a trade as it goes in our favour. http://www.contracts-for-difference.com/tactics/Basics.html You might say 'I want to get more aggressive when things are on my side'. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How can we do that? Averaging down does get a bad reputation and this is normally a bad idea if you do it without a plan but averaging into positions with a plan is sound. If you've spotted momentum, scaling in does help to extract more value from your initial trade.
Views: 1624 TradeCFDs
What Moves A Currency?  Why Currency Rates Move...
What affects foreign exchange rates? http://www.contracts-for-difference.com/markets/Forex-CFDs.html If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! Foreign exchange rates are affected by multiple fundamental reasons as international trade and investment causes movements in the foreign exchange markets. Will the dollar crash? Will the Chinese yuan be the next world leader? You may have encountered foreign exchange rates mostly when considering your holidays, when you change your pounds into the local currency, and back again when you return. Sometimes, you may find a big difference between one year and the next in how much foreign currency you can get for your money. As with all markets, foreign exchange and the relative value of currencies is affected by supply and demand. Having said that, demand is the main driver of foreign exchange rate changes. An abundance of supply of a particular currency doesn't really cause people to buy more of it, whereas an increasing demand will force the rate up. Much of this demand is caused by international trade, for instance Japanese cars imported to the UK will be paid for with pounds sterling, but this money will be converted into Japanese yen to pay the manufacturer who has to pay his workers and suppliers. This then causes you to consider the trade balance. Obviously it is not a stable situation if one country buys goods from the other, and there is no corresponding foreign exchange in the other direction. The currency which is being used by the buyers to pay for the goods, in this case sterling, cannot forever be paid out to buy Japanese yen with no compensating currency exchange back. This situation is to some extent self-regulating. The buying currency will decrease in value, and the currency of the producing country will increase relatively. Before too long, the price of Japanese cars in the UK would have to rise, and this would reduce the demand, cutting back on the trade imbalance. Different countries have different fundamentals. Some countries are rich in the natural resources that are needed for production. These countries include Canada and Australia. Other countries have less in natural resources and take on the role of the producers, buying in raw materials and shipping out finished products. Although political influences can have short-term effects, in the long term the economic forces are more significant in determining the fortunes of a currency. Certainly political instability can make the world markets hesitate, with investors wary of buying the currency, but it's how efficient a country is at extracting natural resources and/or manufacturing that will ultimately impact how its currency is viewed globally. Another governmental decision that has some effect, although not in the long-term, is that of the central bank interest rate. When interest rates differ between various countries, there is an obvious pressure for the exchange rate to compensate. Without a drift in exchange rate, investors in the lower interest rate country would have a no risk way of increasing their income by buying the other currency, putting it into a savings account there. Finally, whenever there are crises in the world, you will note that there is a flight to what is regarded as a quality or safer currency. Typically, investors will buy US dollars or other major currencies, on the basis that the value is more likely to be retained.
Views: 9237 TradeCFDs
What are CFDs: Basic Guide
Contracts for Difference or CFDs http://www.contracts-for-difference.com/cfds/compare-brokers.html were developed to manage investment risk but can also be used to accelerate your investment performance. CFDs are leveraged products which mean they carry a higher level of risk to your capital than normal stock market investments, like traditional share dealing. CFDs let you speculate on share price movements without actually buying the share. Essentially it is an agreement between an investor and a provider to exchange the difference between the opening and closing price of the contract. So if the share increases in value, you will receive the value of that gain. However, if the share falls in value, you will lose an amount equal to that drop. Find out more about CFDs by visiting http://www.contracts-for-difference.com/ Risk Warning: This video is for general information only and is not intended to provide trading or investment advice or any personal recommendations.
Views: 10655 TradeCFDs
City Index: CFDs Explained
CFDs Explained by City Index Staff http://www.contracts-for-difference.com/ What are CFDs?
Views: 4629 TradeCFDs
Day Traders: Habits for Successful CFD Trading
A job as a day trader http://www.contracts-for-difference.com/ is a great way to make money in a very lucrative field. It is not, though, an easy way to get rich quick. In this presentation we look at some top tips from successful CFD traders. Rule 1: Build a trading pyramid Rule 2: Avoid entering your entire position at one price Rule 3: Never add to a losing position Rule 4: Cut your losses short Rule 5: Let profits run Rule 6: Learn to like losses
Views: 9614 TradeCFDs
CFD Trading at IG Markets: TV Commercial
Contracts for difference and CFDs http://www.contracts-for-difference.com/igmarkets/Igmarkets-review.html offer all the benefits of trading shares without having to physically own them
Views: 5605 TradeCFDs
Overbought Or Oversold? Using The Relative Strength Index to Find Out
Relative Strength Index applied to CFDs and Trading http://www.contracts-for-difference.com/course/relative-strength-index.html Relative Strength Index (RSI) Let's talk RSI i.e. Relative Strength Index (RSI) is a momentum indicator but it is also an oscillator; an oscillator means that it oscillates between a high and a low ceiling. You may think this is a misnomer, as ‘relative’ normally means relative to something else, such as the sector or overall market. Relative in this case means the stock’s movements relative to itself and its previous performance. Fortunately, charting software works it out for you, but it’s figured from the average up move divided by the average down move over the specified time period (often 14 days in trading software). As an oscillator, it can go between 0 and 100%, and significant values are 30% and 70%, although some stocks go to 20% and 80%.
Views: 1819 TradeCFDs
Using CFDs to Hedge Share Positions
Hedging. http://www.contracts-for-difference.com/strategies/CFDs-hedge.html A common trading strategy, and a useful one in times of market turmoil makes use of a hedge to protect a single share position with a contract for difference. CFDs are especially useful as a hedging tool because a short position can be replicated to hedge the exact position size required. For example, you may have a long term share portfolio that you know you want to keep hold of, but you are worried that it may lose value in the short term, because you think the markets are heading down. You can take out a CFD that could profit on a drop in the share price and help offset the loss on the physical holding. When to get involved -: • when the wider market or a particular stock you are invested in is moving against you. • when a market position has already moved sharply in the direction of your trade and additional gains may be marginal. • when the wider market looks weak and doesn't react to positive or negative news. When to avoid CFD hedges -: • when a trade has moved sharply against you the market is prone to reversing and where hedging near these levels all you would be doing would be locking yourself into a large loss. • avoid hedging in general raging bullish markets when everything seems to be going up. Hedging using CFDs is quite simple as these contracts have a one-to-one relationship with the underlying -: If you have 6,000 shares of Microsoft and would like to cover your full exposure via a CFD, all you would need to do is to sell 6,000 CFDs of Microsoft with yoru provider. If you only want to hedge just half you could sell just 3,000 CFDs,
Views: 24471 TradeCFDs
What drives Commodity Price Changes?
What affects Commodity Prices? http://www.contracts-for-difference.com/markets/Commodity-CFDs.html If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! This article features factors that affect commodity prices - just what does cause the price of wheat gold and oil to fluctuate? Find out by clicking the above link to see all of the factors that change commodity prices. If you want to trade on the value of commodities, you can do so in several different ways. There are spot and future markets, but most traders will use a more convenient tool, such as spreadbetting, in order to play on the volatility of commodities. There are many companies that are heavily dependent on particular commodities. For instance, petrol refineries need crude oil, and this price typically changes. So you can expect the price of crude oil to have an impact on the share price of companies like Royal Dutch Shell and BP. Even if you do not trade commodities, this is a reason you may be interested in what causes commodity prices to change. And put simply, the old standby of the economist, supply and demand, govern all the fluctuations in pricing of commodities. This is not to say that supply and demand are equally important for all types of commodities. For instance, some are more dependent on supply, whereas others have a dependency on a varying demand. Consider agricultural products. These include products like wheat and corn. You're probably not going to see a big change in demand for these products, so much as you are going to see large changes in supply. These would result from crop failures and disease, weather conditions, etc. On the other hand, the supply of metals such as gold and platinum is fairly steady at any particular time. A more powerful factor in the pricing of these is how much demand there may be, and demand changes result from increasing industrialization in Third World countries, making these metals more desirable to the population, and from societal aspects such as inflation that tend to change the attitude towards precious metals. It is worth noting that the price of commodities in certain groups tends to move up and down in tandem. In the precious metals, gold, silver, platinum, and palladium would all tend to go up and down together in value. It is unlikely that you would see the price of gold fall and the price of palladium soar at the same time. Similarly, if you consider grains such as oats, corn, and wheat, these prices are likely to move in concert. To some extent, each can be a substitute for another. If the price of oats goes up, then farmers may buy more corn to feed their livestock, and this increase in demand for corn makes that price rise too. Although we are talking about commodities, you can also see this in effect in some stocks and shares. As an example, you would usually see the shares of banks such as RBS and Barclays going up and down together, unless there is a particular scandal or revelation about one of them. It is because of this that many traders limit the amount of exposure in any particular market sector. Diversifying by buying into different companies does not give diversfication if all the companies' shares rise and fall together.
Views: 7443 TradeCFDs
But what is Slippage in CFD Trading?
In stock market trading there two kinds of slippage. http://www.contracts-for-difference.com/ One is real and one isn't. In general, slippage is defined as the difference between a price determined by the trader, and the price that actually occurs on the exchange floor. The term 'slippage' makes reference to a failure to meet expectation with regards to the execution of an order. Slippage is represented by the difference between a trader's estimated transaction costs and the amount really paid due to market conditions or poor execution by the broker or CFD provider.
Views: 1696 TradeCFDs
Trading Strategy: How To Scale In and Out of Trades
Let's talk about scaling in and out of trades in terms of targets. http://www.contracts-for-difference.com/tactics/Basics.html I remember once hearing that scaling constitutes inferior behaviour but I believe scaling makes sense in certain situations. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! I'm a massive fan of scaling; very rarely I go in 'all in' or 'all out' of a position because very rarely can you get it perfectly right. Having said that I still encounter people who think that scaling is a waste of time so to each, his own - and everyone is entitled to his opinion. But I think it makes sense as you give yourself the opportunity to profit from an extended move.
Views: 3233 TradeCFDs
What Are CFDs?
What Are CFDs? A CFD stands for contract for difference. http://www.contracts-for-difference.com/What-is-a-contract-for-difference.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! It is a contract between you and the broker agreeing certain paramaters. Example, you agree to pay the broker the negative difference between the buy and sell price of Tesco shares. He agrees to pay you any positive difference. You don't get any voting rights with cfds. If you're trading an asset, the price will track the underlying asset - the value is based on the underlying asset.
Views: 2683 TradeCFDs
Commodity Trading.  Which are the Best Commodities to Trade?
Which markets to trade? Trading Commodities. http://www.contracts-for-difference.com/markets/cfd-markets.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! So commodities we have the obvious ones like Gold, Crude Oil, Silver, Cocoa, Coffee, Platinum..etc. There are two types of traded oil; West Texas Intermediate (WTI) which is the USA crude and Brent Blend. Both follow each other closely although they do diverge at times. Traditionally OPEC and global demand dominated the Oil markets but the shale oil industry revolution in the USA is changing the landscape. Gold and Oil are the most common traded commodities - and have quite tight spreads which is good for both swing trading or day trading. Oil has recently experienced some wild moves. Gold has been quiet recently but we've experienced some sharp moves in Gold in the last few years as well. Silver is more volatile than gold although they do tend to follow each other. Copper is a very industrial based markets and depends on the demand in China and emerging markets in particular. The point is that you need to find something that suits you. Commodities like cotton and orange juice for instance are less traded and are likely to have wider spreads. If you are looking to day trade such markets the size of the bid-offer spreads is very important.
Views: 3711 TradeCFDs
What are Indices & How to Trade Them?
Which markets to trade? We talk about Indices now http://www.contracts-for-difference.com/course/trading-indices.html - what are indices? PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! How to trade Indices? An index is a basket of stocks from a particular country. We have a group of stocks that are weighted depending on the index; some indices have a weighting by market cap so the bigger the market capitalisation of a company the more they will move the index when its stock prices moves. If you have 100 stocks in an index and you have one particular stock in that index that has a 10% weighting this will cause the index to move more. Index examples include USA - Market we have the Dow 30 (made of 30 stocks) - very tight spreads Germany - DAX 30 - this is an absolute beast to trade - at times it can swing wildly. I love the DAX as it can give you those regular runs.. France we have the CAC 40 UK we have the FTSE 100 If you're trading an index, make sure you understand the overall mix making the index; is it mainly financials, mining, retail, telecom - what is the overall mix?
Views: 1705 TradeCFDs
Profit Taking Techniques for CFD and Stock Market Traders
Profit taking trading strategies http://www.contracts-for-difference.com/ If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! Some people say that you won't go bust taking a profit but you really need to be careful because you also have to look at your risk/reward ratios and your winners have to compensate your past losses. Initially when you buy there is about 50% chance of a trading going up or down, so you should be getting about half your trades right - correct? Unfortunately it doesn't work that way in practice because losing trades are stopped out (with stops) while we are just too keen on taking profits.
Views: 2143 TradeCFDs
Trading Sugar using CFDs
Commodities which are grown such as sugar are known as soft commodities http://www.contracts-for-difference.com/markets/Trading-Sugar.html, while those that are extracted are known as hard commodities. There are a number of factors that influence the price of sugar. While government trade policies are the main influence on the price of sugar, weather is an important factor too, making the price of sugar subject to sudden fluctuations. Over 3/4ths of the total sugar produced is consumed domestically in the countries in which it is produced, and the rest is traded around the globe which is often termed as World Sugar.
Views: 1510 TradeCFDs
Why Copper and Oil are Important Economic Indicators!
Why Copper and Oil are Important Economic Indicators! http://www.contracts-for-difference.com/markets/cfd-markets.html If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! You might think that the price of crude oil and of copper is only important if you are trading commodities or futures. If you are simply trading in the stock market, there does not seem to be any direct relevance. It is true that there is no direct impact between copper and oil prices and the stock market, but you can draw certain inferences if you keep an eye on how the prices are doing. Take for example copper. Where is copper used? Typically, copper is used a lot in construction, for electrical wiring, as well as in producing other industrial goods. This means that if there is a large demand for copper and therefore a strong price, you can usually expect it to have come about as a result of an expanding economy. The opposite is not completely true. If the price of copper is falling, this does not mean necessarily that the economy is stagnant, but it does give a warning sign that the economy may be slowing. Inevitably, there is a time lag between one market and the other. What then of crude oil? Once again, this is not directly related but watching the price of oil can give you inferences about the performance of other markets. A booming economy will generally push up the price of oil. One reason for this is that a booming economy means more transportation of goods for sale, as well as people taking personal journeys of choice using oil products. There are other reasons that oil prices can go up. For instance, uncertainty in the Middle East typically makes the oil markets nervous as supplies may be threatened. Another reason for increasing oil prices is a particularly hard winter, which has consumers buying much more heating oil. The volatility in the price of oil is well known, and some traders spend their lives simply trying to follow the impact of different factors. You have to bear in mind the overall situation when you try to draw inferences from oil prices. One thing that is more certain is that oil prices going up will tend to depress the stock market. This is for several reasons, all to do with manufacturing. Some goods directly use oil products in the manufacturing process, producing plastics, etc. Increasing energy costs place a greater financial burden on manufacturing, which will tend to push down the value of shares. As pointed out above, much of the transportation and distribution of goods for sale depends on oil products, so an increasing oil price will cause more expense, reducing companies' profits and causing share prices to weaken. What is clear is that when you are trading you need to look closely for interrelations between the various markets. Even outside the obviously correlated factors that we have looked at previously, you will find that you can learn a lot about how you expect your chosen trading market to perform by keeping an eye on other markets, and by drawing the appropriate inferences from the way that they are trending.
Views: 648 TradeCFDs
Trading Strategy: Scalping with CFDs
Nothing compares to scalping it comes to excitement, and contracts for difference http://www.contracts-for-difference.com/strategies/Scalping-cfds.html are a great way to take part. Scalping is a trading style that's particularly suited to CFDs, thanks to their lower transaction costs. Scalping is a way of trading where you take small consistent profits, cutting your losses quickly when necessary. Scalpers take frequent gains from small price fluctuations and trades, are often exit them shortly after they've become profitable.
Views: 1114 TradeCFDs
What to Do if you get a Margin Call
What to Do if you get a Margin Call http://www.contracts-for-difference.com/Low-margins.html If you've enjoyed this video, please click the like button below and share it with your friends and remember to SUBSCRIBE! If you are a stock trader with a regular account, then good for you. This article does not apply to you, as all you are able to do is buy and sell stocks and shares with the money that you have. But if you are one of the increasing number of people who use a leveraged product for trading such as CFDs, then you should pay attention. You use a leveraged product because it means you can control and profit from a significantly greater number of shares or other financial securities than you could afford to buy with the money in your account. This allows you to profit much more, but it also lays you open to larger losses, should your trades go the wrong way. A margin call happens when the amount of money you have on deposit with your broker is deemed insufficient to cover potential losses on your open trades. As part of the extensive regulations on trading, the rules are laid down as to how much money you need in your account, and if you have less than this, your broker will issue you a margin call. The margin call is a demand for you to place more money in your account, so that the broker is protected against the consequences of your currently bad trade. The margin call does not protect you, in fact it demands more money than you were initially prepared to put into your account. And if you do not respond quickly to a margin call, then your broker is entitled by law to take any action he deems necessary to protect himself from potential losses. This can include closing down other unrelated trades that you may hold through him, whether or not they are winning. If you are planning and monitoring your trades properly, you really should not receive a margin call. It is a clear indication that you are getting in too deep, and over-leveraging your trades. You have to do something straight away, otherwise your broker can take action against you, and the sensible thing would be to close down the errant position before it gets you in more trouble. There is no point adding more money to your account, sending good money after bad, when you have already overstretched yourself. Once you have closed down the position, then you can take stock of this and other trades, and see where you have been over-enthusiastic in your trading. Note that simply closing the bad position may not completely recover your account, so you may still need to add some funds to continue with your other trades, but at least you will have stopped the bleeding. If you are ever in the position of receiving a margin call, take it as a stern lesson that you are taking more risks than you should, and make sure that you revise your trading strategy.
Views: 957 TradeCFDs
IG Markets: Risk Management Using Orders
Risk Management Using Orders web seminar by David Jones of IG Markets. http://www.contracts-for-difference.com/ccount/click.php?id=11 What are Stops and Limit Orders? Trading with Stop and Limit orders. Stops and Limit orders are and how they operate. It's designed to help you develop an approach to risk management that will suit your unique style of trading.
Views: 17216 TradeCFDs
CFD Trading Terminology: How To Understand CFD Jargon (Long, Short, Stop Etc.)
CFD Trading Terminology http://www.contracts-for-difference.com/course/cfd-terminology.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Going long is buying a stock or index (a bullish trade) Short is selling a stock or index (a bearish trade) Stake - How many contracts you want to trade? Tick - The minimum increment of movement Underlying - The asset which your CFD is based on Quote - The buy and sell prices for an instrument Mark to market - Open trades are referenced against Leverage - Gearing or margin LIBOR - London Interbank Offer Rate (commercial interest rate)
Views: 1139 TradeCFDs
Cómo operar con CFD:  Los Contratos por Diferencias
Los Contratos por Diferencias http://www.contracts-for-difference.com/Contratos-por-Diferencias.html son un producto financiero mediante el cual dos partes intercambian la diferencia entre el precio de compra-venta en una operación financiera -: El inversor: es quien da la orden de comprar o vender el contrato de un determinado subyacente (acciones, índices). El emisor: es quien emite el CFD, generalmente una entidad financiera o sociedad de valores, que es quien se encarga de realizar la operación de compra-venta que lleva ligada a este producto. En primer lugar, con diferencia de otros derivados, es importante tener en cuenta que cada entidad establece de manera diferente como calcular las comisiones, así como las condiciones en las que ofrecen los precios a los que sus clientes pueden tomar posiciones.
Views: 2643 TradeCFDs
10 Tips for Trading Contracts for Differences
Here's 10 CFD trading tips http://www.contracts-for-difference.com/tactics/Basics.html to bear in mind when you're trading contracts for differences or shares trading for that matter. Do's and Don'ts. Contracts for difference are a great, flexible trading instrument. But you need to have a well-honed techniques to trade them. If you have reasonable CFD trading skills, a good trading system, and prudent money management, trading offers you great potential for profit.
Views: 8946 TradeCFDs
Intertrader: Placing a Trade on the Trading Platform
Placing a trade on the InterTrader platform. http://www.contracts-for-difference.com/ccount/click.php?id=47 PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! InterTrader offer a no-dealing desk spread betting and CFD service. They hedge all client trades meaning that the provider never takes positions against clients. This video is a demonstration of the InterTrader trading platform and how you can place trades and orders on it. It includes a demonstration of how to attach a stop loss order and a limit order to trades. You can open either a demo or real money account with InterTrader. InterTrader is a market-neutral broker that doesn't take positions against clients.
Views: 1750 TradeCFDs
Risk:Reward Ratio And Probability
Let's talk Risk:Reward now. http://www.contracts-for-difference.com/course/risk-reward.html It is known as good practice to work using the risk:reward ratio. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! The common idea is to risk GBP1 to make at least GBP3 so the risk:reward would be 3:1. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Thus you would stand to make 3 times the amount you are risking. What is not discussed is the % chance that a market will do X. If the market is sitting at a level, the chances of it going up or down is roughly speaking 50/50. However, as traders that is no good for us.
Views: 1647 TradeCFDs
Cost of Trading CFDs?
What are the costs of trading CFDs. http://www.contracts-for-difference.com/Trading-costs.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE How it works: Buying. If we think the price of crude oil is going up, we buy or go long at say $36 for the price of oil. The oil price moves up to $48 and we close our position with a sell and we have made $12 x our position size. How it works: Selling. If we think the price of crude oil is going down, we sell or go short at $50. The price moves down to $40 and we close our position with a buy, we have made $10 multiplied by our position size. What is the cost to trade? A CFD broker will offer you two prices. A buy price and a sell price. The difference between these is called the spread. This is your trading cost and is decided by the underlying market (exchange). A commission is then added to your trade price.
Views: 906 TradeCFDs
Small Caps versus Blue Chip Stocks
The major stocks or blue chips represent large companies and industry. http://www.contracts-for-difference.com/Smallcap-vs-blue-chip.html Usually there is another tier of corporate size, called the medium-cap stocks, and then small cap, which is the rest of the companies which have gone public. Even though they are called small or low cap, they can still be a reasonable size. There are several factors that affect your choice of large cap or small cap trading. When you first set out to trade with contracts for difference (CFDs) it can be very confusing, particularly if you have not done much trading of any sort before.
Views: 895 TradeCFDs
How to Trade Wheat CFDs
Wheat CFD Example You bought 1 CFD contract for wheat at the price of 520 cents per bushel and sold it at the price of 522 cents. The difference is 2 cents. One CFD contains 5000 bushels (like in a standard exchange contract, for example, on the CME Group). So, your profit is 5 000 × 2 cents = 100 dollars. Long position (purchase) An investor decides to buy Wheat CFD quoted 515 (bid)/516 (offer), and buys 5 contracts at the price of 516 cents per bushel (let's recall: 1 contract contains 5,000 bushels of wheat). - Buy price of wheat is 516 cents - Quantity of contracts is 5 - Value of 5 wheat contracts is 129000 (5.16*5*5000) - Margin required is 8000 US dollars (2300*5) - Investor freezes only 8000 dollars on the account in order to get control over wheat in the value of 129000 USD Position closing Five days later wheat is quoted 525/526 cents per bushel, and the investor decides to close this position by selling an identical set of contracts, namely 5 contracts. The investor sells those at the «bid» price, i.e. 525 cents. - Sell price for wheat is 525 cents - Quantity of contracts is 5 - Wheat value is 131250 US dollars (5.25*5*5000) - Net profit per the transaction is 2250 US dollars - The return is 28% on the capital invested in just 5 days
Views: 1185 TradeCFDs
Factors that affect the Housing and Property Markets
Just what affects house prices? If you've found this video useful, please click the like button and share it with your friends and remember to SUBSCRIBE to remain up-to-date! This is a detailed economic lesson on factors that determine house prices and whether property is a good investment. We look at the UK housing market and compare it to Germany. There are many factors that affect the price of a house and we explore many in this economic lesson. You may disbelieve the headline, but it depends how you decide to evaluate house prices. Of course, the cost in pounds sterling of houses has risen significantly over the decades, but this is really just a demonstration of the fall in value of the pound, rather than the increasing value of houses. We can show this by considering what it costs to buy a house in terms of commodities. If you look at the value of the house as ounces of gold, or as gallons of petrol, then house prices have hardly changed since the middle of the last century. Price is relative, but you might think that increasing labour costs would have impacted the expense of building a house. Leaving out the cost of the land, the building cost for a house breaks down to approximately 50% labour and 50% material. Labour has gone up relatively, but material has gone down because of things like industrialization, which means that the bricks can be made in much greater quantities and more cheaply. Each country and each society has various factors that affect house prices. Take for example Japan. The price of houses in Japan skyrocketed, so that they were no longer affordable. The answer to this which the Japanese adopted was to develop a three generation mortgage. The commitment to pay a mortgage could last as long as 100 years, and be bequeathed down to offspring. Alternatively, consider the case of house prices in Germany. While Germany is a rich economy and you might expect house prices to reflect this through inflation, the price of houses in Germany has been relatively flat in monetary terms compared to other Western countries such as the UK and USA. The reason for this may be because there is less speculation in houses in Germany, and they are not regarded in the same way. The homeownership rate is only 43%, and people tend to stay in the same place for longer. Another disincentive to buying and to moving is that costs are about double those in the UK. A typical buyer in Germany will pay about 8% of the purchase price in fees. Add to this the customary practice of putting down 30% - 35% as an initial deposit, compared to around 10% in the UK, and you can see that the housing market is naturally a lot cooler. There are some other factors for housing in the UK that might result in a creep upwards in real cost. Demand is noticeably increasing, as immigration is up. Breakthroughs in healthcare mean that people tend to live longer, and consequently there are less houses coming onto the market, reducing the supply. The third factor is the societal norm of a lower occupation level. Some decades ago, families tended to stay together and live in the same house. Now it is more likely that there will be few people in living in a house, particularly given divorce rates and the required mobility of labour. All these factors will increase the demand.
Views: 1512 TradeCFDs
eToro Review: What They Don't Tell You!
Reviewing the eToro Trading Platform and Social Trading. This is not a recommendation to use eToro. The new eToro was launched in November 2015 which merged their old OpenBook social investing platform and their WebTrader trading platform. Basically, eToro targets the mass market– it tries to make trading accessible to the average Joe, who formerly probably didn’t know too much about the forex markets and investing in general. So what is eToro? With their proprietary trading platform, traders can choose between trading on their own (i.e. the old fashioned way) or copying other traders with just a few clicks of the mouse. eToro itself is regulated in Cyprus by the Securities & Exchange Commission (CySEC) and in the UK by the Financial Conduct Authority (FCA). Most clients will be subject to eToro (Europe) Ltd. which is regulated by the Cyprus Securities and Exchange Commission (CySEC) and retains a cross border license from the CySEC to offer its services in member states of the European Economic Area, and outside of it. eToro UK’s financial services shall be rendered solely to Premium Clients which are residents of the United Kingdom. Premium clients are those depositing over $20,000…
Views: 1998 TradeCFDs
Trading Gold with CFDs
Trade Gold CFDs http://www.contracts-for-difference.com/markets/Gold-CFDs.html Gold contracts for difference are amongst the most commonly traded and the most liquid commodities you can trade. The advantage of this is that the spread is tighter and you should be able to enter and exit positions easily irrespective of the trade size. The tick size for Spot Gold is 0.1, so if Gold moves from 1071.20 to 1072.20, that is equivalent to 10 ticks. Here's an example of how gold CFDs work. Say that gold is quoted at $1071 to $1071.50.
Views: 512 TradeCFDs
Should You Let Your Winners Run Or Take Profits Off The...
Should You Let Your Winners Run Or Take Profits Off The... http://www.contracts-for-difference.com/ If you've enjoyed this video, please click the like button below and share it with your friends and remember to SUBSCRIBE! There's an old trading adage that says you should "cut your losses and let your winners run". Many traders try to stand by this advice, and it has a sound basis. Cutting your losses means that you accept a losing position quickly and make your exit, rather than waiting on in hope that it will turn around and come back to a profit, or at least to breakeven. This makes a lot of sense for short-term traders. The natural inclination is to deny internally that you have got the trade "wrong", which is identified with losing money, so you really want it to turn around and come into profit, and feel inclined to give it time to do so. The trouble is that more often than not the price continues going down, and you end up losing much more than you intended. If you have several trades going this way, you will rapidly find yourself out of capital. Similarly, letting your winners run means that you try to extract the best product possible returns from each trade. This is to avoid the inclination that some traders have to "lock in the profits" as soon as a position becomes a winner. This tendency is particularly strong if you have had a succession of losers, and there is no doubting the gratifying feeling that you have when you close a winning trade and can look at the amount you made. The problem with letting your winners run is if they run out of steam and start coming back. Then you have to deal with the psychological issue that you could have had a certain price, and you didn't take it. This can set up a conflict in your mind, whether to take the lesser profit now on offer or to hope that the price will go back to the level it reached – after all, it got there once. Once again, the psychology of trading is complex and often conflicts with natural feelings and tendencies. Nonetheless, for short-term trader letting your winners run is still good advice, though you must realize that you will never be able to sell at the peak consistently, so you will always leave something on the table. The situation is somewhat different if you are a day trader. In this case, you rely on fast action, doing all your trading in a day and closing the positions each night. It can make sense to take your profits when they are offered, and move on to the next trade. It does not matter so much if you leave half of the theoretically potential gains unrealized, as you might well not even be in the trade long enough for them to come about. In the meantime, by closing the trade early your money can be made available to use again. It may be better to accept the gain and look for the next good opportunity that you can take with the money that you have freed up.
Views: 613 TradeCFDs
The 4 Types Of Stop Loss Strategies: Number 3 - Volatility Based
The 4 Types Of Stop Loss Strategies: Number 3 - Volatility Based. http://www.contracts-for-difference.com/stops/stop-loss-orders.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! You can use this on a daily or intraday chart. Let's take a 5 minute chart example. So we could use a stop equivalent to 3-times ATR.
Views: 390 TradeCFDs
Margin and Trade Financing Workings: Calculating the Notional Values for a CFD?
Margin and Trade Financing; Cost of Holding CFDs: Financing, Charges and Dividends. PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! Margin is the deposit required to fund a trade expressed as a percentage of the notional value. Example: Buby 10 CFDs @ 6540.5 Notional value is GBP65,405 Margin requirement is 1% The money required in your account to fund this trade: GBP654.10 - Margin is lower on Forex, Indices, Commodities (0.5% - 2%) - Margin is higher on shares (5% - 25%) - But notional is lower for the same relative exposure If you are trading an aggressive volatile tech stock it is not unusual for it to move 5 or 7% in a single trading day and that's why brokers require a bigger deposit on such stocks.
Views: 524 TradeCFDs
Make your Position Size Relevant
Now this is a controversial one http://www.contracts-for-difference.com/ and this issue mainly applies to certain Market Makers but has applications in relation to stop losses for all providers. While it is rare, you may be personally targeted as a 'Trader of interest' or 'VIP client' by a Market Maker. CFD traders placing bigger orders and/or making reasonably consistent profits get looked at closer so that a provider can give you better service, make sure they are hedged big enough for the trades you are placing and get in and out of your trades quickly to minimise slippage. Filling larger orders can be more difficult so you may get slipped for this reason or because it's late in the session and a dealer is behind in profits. The more unscrupulous dealers may look to make a more substantial block of profit from you... just maybe? Now there are more tangible reasons to break up larger orders which have a big size relative to the normal turnover ranges. As we can see in the market depth example following, if we wanted to sell 200,000 share CFDs at $3.03 each and the market was starting to move down quickly, the dealer might want to fill you at $3.00 where he can justify the volume as being instantly available, whereas 3 orders of say 70,000, 70,000 and 60,000 all at 3.03 would have seen you filled probably at $3.03, 3.02 and 3.01 respectively saving you $4,100 slippage (70k x .03c better fill, 70k x .02c and 60k x .01 approx depending on exact quantities). Orders placed with a Market Maker at position sizes under whatever the dealer has as the default daily amount (let's say $20,000) are typically transacted by the computer automatically at the best price. However, larger orders may need dealer approval. If you are a regular profit taker and have yourself on a 'preferred' list you may get your orders adjusted -- meaning extra slippage, particularly in a busy time of the day. An alternative to all of this is to just trade the more liquid CFDs in the Top 100, indices or FX where the order sizes have to be very significant to warrant intervention.
Views: 453 TradeCFDs
The 4 Types Of Stop Loss Strategies: Number 1 - Premise Based
Let's talk about stop losses i.e. stop loss orders. http://www.contracts-for-difference.com/stops/stop-loss-orders.html PLEASE LIKE AND SHARE THIS VIDEO SO WE CAN DO MORE! This should be central to your risk management strategy; you shouldn't get into a trade without a good idea of where you would exit if things were to go wrong. 1) Premise Based - when you go into a trade you have an idea of why the trade should work. If the market doesn't trade in the direction that you predicted this would tell you that your premise hasn't worked. As such you would put your stop below a key level. 2) Time Based - say x minutes after the trade. 3) Volatility Based - say ATR (average true range) 4) Trailing Stop - Moving Average, Ratchet System Premise based is purely down to a specific price point - we know the exact price level at which we would exit the position.
Views: 136 TradeCFDs