Contracts for Difference (or CFDs for short) 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.
We look at what CFDs are and the markets that are covered, consider how trader trends have changed over time, explore some basic trading strategies and examine how regulations have evolved in the face of this product.
- Identify the key characteristics of CFDs that have driven their popularity in Australia and in other markets around the world
- 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
- Differentiate CFDs from other types of derivatives
- Describe some basic CFD strategies
Looking for a RG146 CPD solution? This course also forms part of our complete online CPD solution, , which enables financial participants and organisations to meet ASICs RG 146 ongoing training requirements.