What are CFDs?
Contracts for difference (CFDs) are a form of derivative trading that enable you to attempt to net a potential profit by speculating on the rising or falling prices of fast-moving global financial markets (or products) such as Shares, Indices, Commodities, Currencies and Treasuries.
Unlike traditional trading on those markets, you don’t need large amount of capital to start trading – CFDs are traded on Margin, similar to Foreign Exchange Market and there is NO stamp duty to pay.
CFDs can be used as to speculate on Up and Down movements, as to hedge or diversify your equities of commodities portfolio without the significant collateral requirements and lot sizes associated with classic Futures trading.
Although the price of the CFD usually reflects the price of the underlying asset, this isn’t necessary the case. Please be advised, that you’re not buying or getting any ownership of the underlying asset itself.
Features of CFD on Stocks Trading
Contracts for Difference are made to fulfill most every trader needs :
- Trade on both rising and falling markets – similar to Forex trading, CFD trading enables you to buy (go long) if you believe market prices will rise, or sell (go short) if you believe market prices will fall.
- Efficient use of your capital with high leverage – CFDs are traded on leverage, meaning you need only a small deposit to open your position rather than having to put down the full value of a trade.
- Hedging possibilities– If you expect your existing stock or commodities portfolio may lose some of its value in a short term, you can use CFDs to cover this loss by short selling. Short-sell to protect your physical portfolio from adverse movements
- Portfolio research – With CFDs, you can use your existing knowledge and approach to researching the stock market to diversify your portfolio with stock indices, sectors and more.
- US Stocks – Trade United States of America (US) international shares from the same account. The CFD on stocks was developed to clients to trade in stocks, without having to physically own the stocks itself.
- Optimized electronic communications networks – Trade inside the market spread using direct market access
- Liquidity Providers – Be confident that we try to find the best prices, which we source from primary exchanges and pools of renowned Liquidity Providers
- Hassle Free – Eliminates the inefficiencies of trading stocks on the exchange
- Additionally, our shares now reflect corporate actions so you will be entitled to dividend payments when going long and will incur dividend charges when going short.
Alibaba Group Holding Ltd.
Alibaba Group Holding Limited (Chinese: 阿里巴巴集团控股有限公司) is a Chinese e-commerce company that provides consumer-to-consumer, business-to-consumer and business-to-business sales services via web portals. It also provides electronic payment services, a shopping search engine and data-centric cloud computing services. The group began in 1999 when Jack Ma founded the website Alibaba.com, a business-to-business portal to connect Chinese manufacturers with overseas buyers.
Facebook, Inc. held its initial public offering (IPO) in February 2012, and began selling stock to the public three months later, reaching an original peak market capitalization of $104 billion. On July 13, 2015, Facebook became the fastest company in the Standard & Poor’s 500 Index to reach a market cap of $250 billion.
Google was founded in 1996 by Larry Page and Sergey Brin while they were Ph.D. students at Stanford University, California. Together, they own about 14 percent of its shares and control 56 percent of the stockholder voting power through supervoting stock. They incorporated Google as a privately held company on September 4, 1998. An initial public offering (IPO) took place on August 19, 2004, and Google moved to its new headquarters in Mountain View, California, nicknamed the Googleplex.
Apple was founded by Steve Jobs, Steve Wozniak, and Ronald Wayne in April 1976 to develop and sell personal computers. It was incorporated as Apple Computer, Inc. in January 1977, and was renamed as Apple Inc. in January 2007 to reflect its shifted focus toward consumer electronics. Apple (NASDAQ: AAPL) joined the Dow Jones Industrial Average in March 2015.