CFD Trading in International Financial Markets

Difference Trading Contracts in markets

Understanding support and resistance levels in spread betting and contracts for difference trading in the international financial markets.


September 04, 2008

Currency CFDs: Japanese Yen

Japanese yen gains in forex trading
One of the nice things about CFDs is that it is possible to trade a wide variety of instruments and markets, currency CFDs included.

One interesting development today is that the Japanese yen is gaining in forex trading against many of the majors. FX Street reports on some of the advances made the yen in forex trading:

Yen rose against dollar to 108.12 yesterday and continued it's bullish advance into the Asian trading session. Japanese economic woes and abysmal data sees yen strong against high yielding currencies (NZD and AUD) pushed on by un-winding of carry trades. South Asian currencies missed the benefits of the lowering in commodities as recession fears continue.

September 02, 2008

How to Trade CFDs

Contracts for differences
CFDs won't offer much of an advantage for longer-term investors who may be looking to buy and hold a share for months on end, but they can be exciting for shorter-term traders looking to profit from the volatility.
– 
Martin Slaney, quoted in What Investment
One of the products offered by GFT Global Markets includes contracts for differences (CFDs). These financial instruments are derivatives based on an underlying asset -- including markets, shares or currencies. CFDs are cash-settled.

What Investment comments on the growth of contracts for differences in trading:

CFDs have experienced tremendous growth since they first became available to retail investors in the late 1990s. Active traders in particular have been quick to appreciate the benefits and many now prefer them to dealing direct in the underlying equities.

It is important to note the volatility of involved when you trade CFDs. They are not good for a long term strategy. Rather, you should consider them for short term, active trading.


August 28, 2008

Contracts for Differences on the Sterling

How to trade currency CFDs
CFDs on the currency market
Contracts for differences on the sterling should consider that the currency continues to struggle in forex trading. When deciding on how to trade currency CFDs, it is a fairly (though not completely) safe bet that the U.K. pound will continue to fall in forex trading.

The British economy is steeped in bad news, with housing market data and home prices data continually deteriorating. Bloomberg reports on the state of things for the British economy:

``We know that the economy is very weak and the numbers, if anything, are deteriorating further,'' said Sean Maloney, a fixed-income strategist at Nomura International Plc in London.

August 26, 2008

Contracts for Differences on the U.S. Dollar

CFDs on forex trading
Contracts for differences on the U.S. dollar should consider that the greenback is doing well against the euro in forex trading. Indeed, CFDs on forex trading should consider that the outlook for the dollar is quite good.

Thanks to the following factors, when considering how to trade CFDs, you might consider favouring the U.S. dollar:
  • Commodities, including oil and gold, are struggling a bit overall.
  • U.S. economy on the verge of starting a recovery.
  • Euro in forex trading faltering as the credit crisis finally catches up to the euro-zone economy.

August 25, 2008

Oil Prices Turn Around a Bit

Contracts for differences on oil prices
CFDs on commodities should consider that oil prices are looking to erase losses from earlier today. Contracts for differences on oil prices should consider that tensions between Russia and Georgia continue to threaten oil supply.

Right now, the latest source of tension is the fact that lawmakers in Russia's Duma voted to recognize the independence of two of Georgia's regions, Abkhazia and South Ossetia.

Since there are major pipelines in that region, unrest is seen as an ominous sign for global oil supply.


August 22, 2008

Trading Currency CFDs: Sterling in Forex Trading

U.K. pound continues to stutter in forex trading
Trading currency CFDs should consider that the sterling continues to have issues in forex trading. When trying to figure out how to trade CFDs related to the U.K. pound in forex trading, the big issue to consider is the economy.

With the economy failing and heading for a recession, there is nothing to support the sterling in forex trading, and as a result the British currency continues to move lower.




August 20, 2008

CFDs on Gold Prices

Contracts for differences on commodities
How to trade CFDs on gold prices
CFDs on gold prices should consider that even though the precious metal has been rather volatile lately, it is looking bearish overall. Contracts for differences on commodities in general should consider their volatile nature, and gold prices have been just as volatile as any.

After showing some recovery in commodities trading, gold prices are declining again today. Bloomberg reports on gold prices right now:

``Gold is still looking bearish,'' Tariq Mahmood, a Dubai- based technical analyst at online trader Global Tradewaves Ltd., said by phone. ``The dollar is looking stronger.''

August 13, 2008

UK Pound Contracts for Differences

CFDs on forex trading
UK pound contracts for differences should consider that the sterling is have a great deal of trouble in forex trading right now. With the British economy turning out bad news regularly, the UK pound is faltering in FX trading.

CFDs on forex trading should consider that the UK pound has dropped from its lofty $2 against the greenback to below $1.90 in forex trading.


August 08, 2008

Contracts for Differences: Oil Prices

Trading CFDs on commodities
Right now, oil prices are sliding in commodities trading. After closing a little bit higher yesterday, today in commodities trading oil prices have dipped.

Contracts for differences should consider that oil prices also affect the US dollar in forex trading, and that the greenback is strengthening on this news.





August 06, 2008

Contracts for Differences on the US Dollar

CFDs and forex trading
It is possible to trade CFDs on forex trading performances. Contracts for differences on the US dollar should consider that the greenback is backing off a bit right now.

After a couple of days of gains, the US dollar is stalling as the forex trading forecast calls for some resistance in trading against the Japanese yen and the euro.

Right now, on the heels of more positive rhetoric from the Federal Reserve board, the US dollar appears to be waiting to see what statements accompany tomorrow's ECB rate decision.


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