CFDs made simple : a straightforward guide to contracts for difference / Peter Simple.

Format:

Book

Author/Creator:

Temple, Peter, author.

Language:

English

Subjects (All):

Contracts for difference--Handbooks, manuals, etc.

Contracts for difference.

Physical Description:

1 online resource (164 p.)

Edition:

1st ed.

Place of Publication:

Petersfield, Hampshire, Great Britain : Harriman House, 2009.

Language Note:

English

Summary:

CFDs, or contracts for difference, have experienced a surge in popularity with private investors and traders. They are extremely flexible trading instruments that offer high degrees of leverage, the opportunity to go long and short and to hedge open positions in other tradable instruments. Similar to spread betting, traders can take advantage of price movements without having to buy the underlying asset, thereby avoiding stamp duty, broker commissions and 100% capital requirement issues. However, CFDs are high risk, predominantly because of their gearing exposure, and anyone entering this market should fully understand the risk and rewards before they start trading. 'CFDs Made Simple' is a short, straightforward, no-nonsense, practical guide to this exciting product written in Peter Temple's accessible style.

Contents:

Intro

Contents

Preface

What this book covers

Who the book is for

How the book is structured

The risks involved

Risk warning

1 Introduction

The D-word

Are we set for a long period of modest returns?

What are the new techniques we need to survive?

Why do we need them?

2 Basic Concepts

Underlying

Contracts

Cash settlement

Gearing

Hedging

Indexes

Margin

Short Selling

Comparison With Other Derivatives

3 How CFDs Work

CFD Basics

CFD Mathematics

7 CFD Rules of the Road

Rule #1 - Make sure you can afford it

Rule #2 - Remember that margin requirements vary from stockto stock

Rule #3 - Use CFDs mainly in shares and stock indexes

Rule #4 - Integrate CFD trading with the rest of your investing

Rule #5 - Monitor your trades closely, especially gearing

Rule #6 - Remember that stop-losses may not be available inall cases

Rule #7 - Keep track of commission and interest costs

A Final Word on Gearing and Risk

4 Dealing

Opening an Account

Day-to-Day Trading

5 Trading Strategies

1. Long-Only or Short-Only Trades

2. Long-Only or Short-Only TradesUsing Stop-Losses

3. Cash Extraction Trades

4. Pairs Trading

5. Relative Value Trades

6. Hedging

7. Using CFDs for Adjusting AssetAllocation

8. Other Strategies - Exploiting ExdividendAnomalies

Afterword

6 Trading Disciplines

Trading Rules

Money management

Trading Tips for CFDs

Developing Your Plan by Looking atYour Assets

7 Timing Your Trades

8 Resources for CFD Investors

Web Resources Specific to CFDs

Books

Websites

Index.

Notes:

Includes index.

Includes bibliographical references.

Description based on online resource; title from PDF title page (ebrary, viewed February 14, 2015).

ISBN:

1-906659-40-0

1-4416-2798-7