Understand The Difference Between CFDs And Futures For new traders, contracts for difference (CFDs) and futures are occasionally confusing because of the general similarities between them. Both instruments are derivatives, they carry more or less similar leverage benefits. But this doesn’t mean that either of them can be authoritatively said to be superior to the…
What is the difference between CFDs and Spread Betting? Updated for 2023 Investing in financial markets can be profitable, but a vehicle or security such as traditional Share ownership can require large amounts of capital. This is because you’ll need to buy Shares in significant quantities to make sworthwhile short-term profits from their price movements.…
Trading Support and Resistance is one of the fundamental techniques and concepts of technical analysis. The common approach using this concept is to go long at a close above resistance and to go short at a close below support. Support and Resistance will begin to make sense of selling at a low and buying at…
What is a reversal day? A top reversal day is when a price trades higher than the previous day’s trading session, but closes lower than the previous day’s close. As you might expect, a bottom reversal day is the opposite of this – when there is a lower low than the previous day and a…
What are Bollinger Bands? One of the most well known technical indicators, Bollinger Bands are typically represented as three lines overlayed on a daily bar chart. The middle line is a moving average, most often a 20-period. Two more lines run parallel to the middle line, with the distance from the centre line varying depending…
How do CFDs work in trading In order to understand how CFDs (Contracts for Difference) work first we need to know that in the majority of cases they are over-the-counter (OTC) transactions, that are based on the change in price of an underlying asset, such as a commodity like gold. It’s important to remember that…
