CFD Fundamentals

What is a CFD?

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

CFDs have evolved from being an investment solution commonly used in the institutional sphere, to now servicing traders in the retail sphere as well. While they have often been controversial, CFDs have opened opportunities for traders that would have been impossible in a world where they didn’t exist.

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, examines how regulations have evolved in the face of this product and how it has been used by traders around the world.

Program Content

Learning Outcomes

What you will learn

  • To identify the key characteristics of CFDs that have driven their popularity in Australia and in other markets around the world
  • Explain the different types of CFD providers and how they impact traders
  • How to differentiate CFDs from other types of derivatives
  • The key concerns that have been voiced by regulators and some of the steps that have been taken to address these by the industry (both self-motivated and mandated).

Who is this course for?

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

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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.
Our courses, CPD and qualifications are 100% online, so you can start anytime, anywhere.
  • Either enrol online or
  • Contact Us to arrange an invoice for EFT or AMEX payments.
You can enrol your team either:
  • Easily enrol online (you can add multiple participants to your cart) or
  • Contact us to arrange a quote.
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.