Are CFDs over the counter derivatives? Yes, CFDs (Contracts for Difference) are over the counter (OTC) traded derivatives, meaning they are not traded on major exchanges such as the Australian Stock Exchange (ASX). Over the counter in the case of CFDs basically means that the financial instrument is traded between two parties, for example between…
Are CFDs and Options the same thing? No, despite some ostensible similarities, CFDs (Contracts for Difference) and Options are not the same thing. In broad terms, Contracts for Difference are a contract to settle the difference between the opening and closing price of an underlying asset over a timeframe. Options are the right but not…
12 strategies to improve your chances for CFD trading success My newest article on this topic is here. If you have been involved in Forex, stock, or commodities trading for a while, you are probably familiar with Contracts for Difference (CFD) trading. CFD trading is a form of online trading that allows traders to speculate…
Is it possible to trade CFDs (Contracts for Difference) for a living? Trading CFDs for a living is a risky but possible proposition for the astute investor. The leverage available from CFDs mean that a successfully executed trade can be very lucrative. A CFD, or Contract for Difference is basically a contract between a seller…
Best software trading platform for CFDs Contracts for Difference (CFDs) are highly leveraged financial products that offer exposure to risk for the sophisticated investor. If you’re familiar with the CFD product but aren’t sure what trading platform is best for you, you’re in the right place. In this article we look at what is the…
Are CFDs taxable in Australia? The taxation of Contracts for Difference and the question ‘are CFDs Taxable in Australia?’ is a very complex one and is dealt with comprehensively in the ATO Taxation Ruling TR 2005/15. If you want to read the ruling, good luck, it’s quite a decent piece of legalese. I’ve done my…
