RECONCILABLE DIFFERENCES? Leveraging and Profiting from a Volatile Market
Looking at the volatility of the stock market is easy to understand why people are apprehensive about getting involved. One statement from the Fed chairman and stocks go tumbling.
Most people don’t seem to understand how the market works. They believe you need a lot of capital to buy stocks, and then there’s always the risk of picking losing trades.
The best way to manage your risk is through training and education and understanding how the market works can make it a very lucrative stream of income for you.
There’s a whirl of financial instruments and investment strategies out there, and just gaining a grasp on them all will make your head spin.
Contract for Difference (CFD) - One of these instruments is called a Contract For Difference or CFD - It is a powerful financial instrument that enables you to invest or trade Stocks, Indices, and Commodities with only 5-10% of the actual asset price.
Contract for Difference (CFD) - When used the right way, it enables you to make 10-20x faster returns compared to direct stock investment or trading.
2 Parties of CDF 1. SELLER - The seller has an asset. An opening trade is made on that asset.
2 Parties of CDF 2. BUYER - The buyer of the CFD will make money if the stock goes up and lose money if the stock goes down. - The buyer of the stock option gets a large amount of leverage and profit based on how much the stock moves in the desired direction.
The Difference Between Stock Options and CFD’s - An options contract has time value built into it and it also loses the time value with each passing day until expiration. -
CFD’s do not have an expiration date.
With CFD’s you are essentially buying and selling stocks with a large amount of leverage. You don’t own the stock, yet you still will receive dividend payments.
Success Resources Pte Ltd Main Office: 10/11 Pahang Street, Singapore 198611 Toll Free: 1800 7822 377 Direct: +65 6299 4677 Fax: +65 6295 2441 Email: info.sg@srpl.net Website: http://www.srpl.net