Two Numbers That Guarantee Your CFD Trading Success
There are two numbers that are critical for your CFD trading success. In this video Jeff Cartridge from LearnCFDs will share with you how to use these two numbers to improve your trading.
CFDs To Be Centrally Cleared In EuropeContracts for difference will be centrally cleared for the first time ever this week through an agreement between LCH.Clearnet, Europe’s largest clearinghouse, and multilateral trading facility Chi-X Europe. The move, say LCH.Clearnet and Chi-X Europe, supports the goal of regulators to increase central clearing in OTC trades. The service will begin with the most liquid U.K. stocks. Traders in the over -the-counter market will send transactions for confirmation to London-based Chi-X Europe, which will pass them on to LCH.Clearnet for final clearing in its EquityClear service. Currently, CFDs are cleared bilaterally between executing brokers and prime brokers. CFDs allow investors to bet on shares or other assets without owning them. The securities are traded off-exchange and investors use the underlying stock to hedge their positions. Regulators on both sides of the Atlantic have been pushing for more OTC contracts to be centrally cleared e cleared amid criticism of opaque financial products and excessive risk-taking in the wake of the financial crisis. Clearinghouses typically act as central counterparties to every buy and sell order thereby reducing the potential for a counterparty to either default on its obligation or go bust. “In the same way as Chi-X Europe launched its cash equities market ahead of MIFiD’s transformation of the trading landscape, we hope centrally cleared CFDs will help address the European Commission’s aim of bringing more OTC trades on-exchange ahead of any regulatory imperative,” says Alasdair aynes, chief executive officer of Chi-X Europe in a statement issued by LCH. Clearnet and Chi-X Europe on Monday. “This is an exciting new opportunity for us to expand our business into new areas.” http://www.securitiestechnologymonitor.com/news/CFD-clearnet-chi-x-europe-26753-1.html Silly Mistakes CFD Traders MakeAvoid these silly mistakes CFD Traders make and dramatically improve your trading results. Jeff Cartridge will share with you how to overcome the simple mistakes that can cost you a fortune. Using Independent Variables When Trading CFDsYou can dramatically improve your CFD trading results, by incorporating independent variables into your analysis. Jeff Cartridge from http://www.learncfds.com will share with you how he has used independent variables to dramatically improve his trading results with chart patterns. Irish Finance Minister Announces New Rules on Contracts for DifferenceIrish Finance Minister Brian Lenihan will publish new rules regulating derivatives within a month, forcing investors to disclose the building of stakes in companies using such instruments. The new rules will govern so-called contracts for difference, which enable investors to bet that a share price will rise or fall without owning any of the stock. Investors can agree at a later date to acquire the underlying shares from their CFD providers. “We expect to have legislation on the matter published within the next four weeks,” a spokesman for the Dublin-based Finance Ministry said, without giving any details. Last year, the U.K.’s Financial Services Authority said it would bring forward the introduction of new rules which required long positions which use CFDs to be made public when holdings reach 3 percent. Tracking SmartStream Announces New ServicesTracking SmartStream has announced that CMC Markets, a financial spread betting, CFD trading and FX trading company, has gone live on TLM OnDemand, SmartStream’s SaaS reconciliation service. To further enhance its operational efficiency and client service, CMC Markets selected SmartStream’s TLM OnDemand that offers the market leading reconciliations functionality as fully managed service. Further, the implementation program offered by the service would enable the firm to benefit from automated transaction processing that lowers exceptions and improves operational efficiency. After a short period of internal testing, TLM OnDemand in now live at CMC Markets processing the firm’s cash transactions. Colleen Bohm, finance systems manager at CMC Markets, said: “TLM OnDemand was attractive because it introduces automated transaction processing with proven technology that will enable us to improve efficiency and lower costs. It is testament to the collaborative effort between CMC Markets and SmartStream that we have, in a short period of time, managed to install, test and go live with an entirely new solution for our back office environment.” LSE’s New Service in CFD TradingThe LSE (London Stock Exchange) yesterday announced that it was extending its UnaVista business service to the swaps market, automating the trading of contracts for differences and other security derivatives and allowing brokers, hedge funds and prime brokers to communicate and match data through a central, secure, audited platform. It is understood that the new service is being tested by a number of hedge funds, prime brokers and executing brokers. Mark Husler, Head of Information Services Business Development at London Stock Exchange Group, said: “For the first time UnaVista is now available for Swaps, helping our customers to streamline trade processing. The new Swaps Portal from UnaVista avoids the need for time-intensive, manual processes such as emails and faxes. It allows both small and large firms alike to connect in a cost-efficient manner, and provides the functionality to match trades and resolve exceptions on trade date.” ASIC Guide for CFD TradingAustralian Securities and Investments Commission (ASIC) has released a new guide that aims to provide retail investors with clear, independent advice on how contracts for difference (CFDs) work and the significant risks that can be involved in CFD trading. The “Thinking of Trading Contracts for Difference?” guide explains why retail investors should consider trading CFDs only if they have extensive trading experience or are used to trading in volatile market conditions and can afford to lose all of, or more than, the money they put in. “Our research with CFD traders found that many traders don’t know or don’t appreciate key aspects of how CFDs work, despite the fact that they are actively trading them,” ASIC commissioner Greg Medcraft said. “This guide aims to fill some of these knowledge gaps, especially around the trading risks.” Medcraft said retail investors who use the guide will be able to make more informed decisions as to whether CFD trading is for them. According to ASIC, the guide includes explanations around how CFDs work, including how trading CFDs differs from investing in shares and the questions that a retail investor should ask a provider before they agree to trade in CFDs. It also explains the different CFD provider business models, including differences between over-the-counter and exchange-traded CFDs, and common traps to avoid. ASIC Model for Contracts For Difference (CFDs)ASIC has turned its attention to over-the-counter contracts for difference (CFDs), and is calling for improved product disclosure to help retail investors understand the highly leveraged derivative products they trade. The corporate regulator released a Consultation Paper, including a draft regulatory guide which proposes an ASIC benchmark-based disclosure model for CFDs. According to the paper, CFD providers will need to provide PDSs and ongoing disclosures that require them to address the benchmarks on an “if not, why not” basis. ASIC’s model will address four aspects impacting investors: ensuring client suitability, disclosing counterparty-risk, stewardship of client monies and practices where issuers make margin calls on clients. Greg Medcraft, ASIC commissioner, said investors may not necessarily understand the risks of trading CFDs due to product complexity - however the lack of clarity in current disclosure statements are another barrier for investors in understanding key information. “It is crucial this information has everything retail investors need to make an informed decision, including spelling out the very significant risks of CFD investment,” he said. Barry Odes, managing director of Australia and New Zealand, CMC Markets, acknowledges ASIC’s concerns and said the firm recently created an understanding the risks” section of the CMC website to improve investor education. “The objective of this consultation paper is to ensure that all CFD traders and prospective traders have a sound level of understanding of the product and risks associated with trading it regardless of the CFD provider they deal with, which is something we fully support,” he said. CFD News: AXI Trader CFD Competition ResultsThe winner of the Axi Trader CFD trading competition managed to turn $50,000 into $836,216 in just 1 month. And in tenth place the trader more than doubled their account in just 1 month. This is an impressive trading result and an indication of what is possible trading CFDs.
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LearnCFDs Home | 7 CFD Tips |
What is a CFD? | CFD Tutorial | Free Articles |
CFD Brokers CFD Strategies |
Trading Books | Why Trade CFDs | CFDs Vs Stocks | CFD
Examples Trading Sites | Stock Trading Secrets | CFD Trading Plan | Short Sell CFDs | Profitable Chart Patterns | Candlestick Charting | Smart Exit Strategies | Position Sizing Secrets |
