How to trade commodities CFDs?

If you’re looking to trade commodities, you need to know how to trade CFDs. Commodities are a tradable asset class, and CFDs are the easiest way to start. With CFDs, you can trade commodities without buying and selling physical products. Instead, you buy a contract that represents a particular underlying commodity. It allows you to trade commodities without taking on the risk of owning them outright. What are commodities CFDs, and how do they work? Commodities CFDs are contracts for differences that allow you to trade commodities without owning the underlying asset. When you trade a commodity CFD, you’re speculating on the price movement of the underlying commodity. If the commodity’s price goes up, you make a profit. If the price falls, then you make a loss. CFDs are traded on margin, meaning you only need to put down a small deposit to open a position. It allows you to

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8 things about forex you may not have known

What is your definition of forex? Is it an adventure, a source of income, a challenge, or even a pastime? What does the word ‘forex’ bring to mind? Whatever it is, trading may be fascinating so long as you aren’t losing money. Are you confident that you’re fully aware of what’s required to trade foreign currencies? Here are some facts that should have you reconsidering. The cable is the name given to the British pound/US dollar currency pair The Great Britain Pound and the United States Dollars are the two of the most traded and exchanged currencies in forex trading. The pair, on the other hand, is known as ‘the cable’. The term ‘cable’ comes from the fact that before satellite and fibre optic cables were invented, the London and New York Stock Exchanges were executing transatlantic currency exchanges via transporting information with a telegraph cable. Trading goes way back

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spot forex

What is spot forex, and how does it work?

Spot forex is a type of currency trading that involves the exchange of two currencies ‘on the spot’ – immediately. The currencies are traded in pairs, with each pair consisting of a base currency and a quote currency. For example, the EUR/USD pair consists of the Euro as the base currency and the US Dollar as the quote currency. The spot forex market is decentralized, so there is no central exchange where trades take place. Instead, trades are executed over-the-counter (OTC) between two parties. OTC trading is done via electronic networks, phones, or other means of communication. Trading in the spot forex market takes place 24 hours a day, five days a week, since there are currency markets in all time zones around the world. As a result, when one market closes, another one opens, making spot forex a continuous and very liquid market. What is trading on the margin?

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Why is CFD Trading Banned in the U.S?

When it comes to finance, contracts for differences involve making cash payments for differences in settlements rather than delivery of securities and assets. CFD trading comes with advantages but as it appears, those advantages mask the risks associated with it. In that regard, U.S. citizens and residents are banned from opening both foreign and domestic CFD accounts. Most people would view that as an invasion of freedom but a closer look, and you get to understand why. Let us look at some of the reasons why this investment strategy is banned in such a developed country. Counterparty Risk A counterparty is just the organization that offers the assets in financial transactions. When selling or buying a CFD, the contract is the only asset being traded in the contract provided by the CFD provider. Doing this exposes the investor to the contract’s issuer counterparties such as other clients that they conduct

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ETF creation and redemption

What are ETFs? An exchange-traded fund (ETF) is a type of security that tracks a basket of assets, commodities, or indices and trades on a stock exchange. ETFs are similar to mutual funds in that they offer diversification and professional management, but they trade like stocks on an exchange.   You can buy ETFs through a broker just like any other stock. Some brokers offer commission-free trading for selected ETFs. When buying ETFs, you’ll need to pay the fees and commissions you would pay for buying stocks.   Before buying an ETF, it’s essential to research the underlying holdings to make sure they fit your investment goals. For example, if you’re trying to achieve long-term growth, you might want.   One of the most critical aspects of ETFs is their creation and redemption process. This process helps to ensure that ETFs remain true to their underlying indexes. It also allows

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