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12/28
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  • Retail Traders or Institutions?.

CFDs appeal to a broad range of users for different reasons and the people trading in CFDs range from sophisticated retail traders to day traders, to mums and dads. Hedge funds, institutions and wholesale clients are also known to make use of CFD trading and the market is still growing.
Professional traders employed by investment banks or trading companies are able to utilise CFDs for speculation or hedging purposes. In this instance their ultimate goal is to gain from or hedge against the risk of, volatility of price movements in market instruments. Institutional investors like hedge funds and stock portfolio managers are also known to utilise CFDs to manage funds on behalf of investors; in this way CFDs provide them with additional flexibility to add to their existing investment options and allows them to manage the short-term risk associated with the daily movements in the value of their portfolios. CFDs in particular allow institutional fund managers access to cheap leveraged exposure on a wide range of market instruments (including instruments that may not have liquid markets of their own) with the added flexibility of being able to…
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aashjan413 avatar
aashjan413 27 Nov.

nice article metal mind

aashjan413 avatar
aashjan413 27 Nov.

keep it up +1

OneGoodTrade avatar

If you win it doesn't matter what medium you use but good work.

ivanbgd avatar
ivanbgd 29 Nov.

nice

erik avatar
erik 25 Nov.

Could your next posting address the commission calculation in detail when trading different CFDs with Dukascopy, i.e. indices vs. single stocks?

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16/28
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  • Introduction.
On 31st July this year Dukascopy Bank announced on the main page in news section that has received a Securities Dealer License, issued by FINMA, and therefore will extend the scope of financial instruments offered on its trading platforms with CFD instruments (Contract for Difference) on a wide range (about 200) of underlying assets, like major indices, stocks and commodities which are programmed to be lunched soon.
Having this in mind and the fact that I have 3 years experience in CFD trading, I have decided to write this article which is the first in a long series that will come, having as main topic CFDs and everything that you need to know about them. In this article I will present basics like what are CFDs?, why they exist? ,trading possibilities and some main advantages.

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Metal_Mind avatar
Metal_Mind 19 Nov.

3. The minimum margin requirement is very low comparing to a traditional aquisition of stocks or future contracts which will require you to have all the margin and a very big account in order to do that. With CFDs you only need to deposit 5-10 % for shares and 1 % for indices. See the example at Potential Return section above.!!
4. CFDs are also tax eficient , are exempt from stamp duty which applies in UK
5.CFDs have very low commision and it is very cheap to trade them which find them very attractive for the little investor.

Metal_Mind avatar
Metal_Mind 19 Nov.

@rokastlu : You will sure find a place for them in your trading portofolio.!

aslamhammad avatar

nice article :)

Mani avatar
Mani 21 Nov.

good work +1

aashjan413 avatar
aashjan413 27 Nov.

well done boss i like your article very much

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