CFD Fundamentals

What is a Contract for Difference?

According to ASIC, Contracts for Difference (or CFDs for short) are a highly leveraged, derivative product marketed to and traded by retail investors.

Contracts for Difference, otherwise known as CFDs, have evolved from being an investment opportunity used in the institutional sphere, to now servicing retail traders as well. While they have often been controversial, CFDs have opened opportunities for traders that would not have been possible otherwise.

About our online course

Our Online CFD Fundamentals course 

  • looks at what CFDs are and the markets that are covered
  • considers how trader trends have changed over time
  • explores some basic trading strategies, and
  • examine how regulations have evolved around this product.

Program Content

  • The evolution of CFDs
  • Overview of CFDs
  • Strategies employed by CFD traders
  • Examples of CFD strategies
  • Regulation of CFD trading

Learning Outcomes

  • Identify the key characteristics that have driven the growth of CFDs.
  • List the markets that are covered by CFDs
  • Explain the different types of CFD providers and how they impact traders
  • Discuss some of the requirements when dealing with CFDs, particularly in relation to commission and financing charges, and disclosures
  • Differentiate CFDs from other types of derivatives
  • Construct some basic CFD strategies
  • Explain the regulatory framework governing CFDs in Australia

What you will learn

Who is this course for?

  • Advisors and representatives
  • Compliance Managers
  • Traders
  • Senior Managers

Units of Competency

Pre-requisite

Recognition of Prior Learning

Certification

You will be awarded a Certificate of Completion. It will be available online for you to download and print immediately.

ASIC-supervised licensees: RG146 Derivatives

FAS-supervised licensees: Technical competence

Discover more in our Regulatory CPD short course brochure

Download Brochure

Frequently Asked Questions

A CFD is a leveraged derivative contract that allows a client to speculate in the change in value of an underlying asset, such as foreign exchange rates, stock market indices, single equities, commodities or cyrptoassets.

CFDs are a highly geared derivative product that allows a trader to take a position on the change in the value of an underlying asset or security (sometimes called the ‘underlying security’ or the ‘reference asset’); they are essentially a leveraged bet on future changes in the market price of a share or commodity, or the value of an index or a currency exchange rate. The vast majority of CFDs are issued and traded over the counter (OTC).

Our CPD short courses are assessed by a short open book multiple-choice exam.

Our CPD short courses are self-paced with online learning resources & on-going support.
  • You have up to 8 weeks to complete the learning and assessment requirements for your CPD short course.
  • Experienced professionals can complete in less time.

To get started, either
  • Purchase your course online. (If checking out for your team, you can add multiple courses to the cart.) OR
  • Contact Us to arrange an invoice
Please note: Online orders may take up to 1 business day to be processed and for you to receive your course login details.  

To get started, either:
  • Purchase course/s online. (You can add multiple courses to the cart.) Please note: Online orders may take up to 1 business day to be processed and for your team to receive their course login details.
OR
Contact us for your Corporate Solution.
What is RG206?2023-04-21T07:53:53+10:00

Regulatory Guide 206 Credit licensing: Competence and training (RG 206)

Credit licensees must comply with the organisational competence obligation in s47(1)(f) of the National Consumer Credit protection Act 2009 (National Credit Act). Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out the minimum expectations for demonstrating organisational competence.

What you need to do to comply will depend on the nature, scale and complexity of your business. However, Regulatory Guide 206 Credit licensing: Competence and training (RG 206) sets out our minimum expectations for demonstrating organisational competence.

You must also ensure that your representatives are adequately trained and competent to engage in the credit activities authorised by your licence: s47(1)(g).

ASIC generally expects you to determine what is appropriate initial and ongoing training for your representatives and to embed this in your recruitment and training systems.

Updated annually, our CPD is designed to enable Responsible Managers and Representatives of Australian Credit Licensees to meet their mandatory RG206 continuing training requirement. Our CPD that is structured, properly assessed and recorded.

Financial Education Professionals acknowledges the Traditional Owners of Country throughout Australia. We pay our respects to Elders past, present and emerging.