Why CFDs?
People who trade in CFDs may do so for a variety of reasons. Some trade for speculation, that is, with a view to profiting from fluctuations in the price or value of the underlying instrument or security. For example, share CFD traders may be investors who are looking to profit from intra-day or overnight to longer term market movements in the underlying shares.
Others trade share CFDs to hedge their exposures to the underlying shares. For example, CFDs can be used as a risk management tool to enable those with existing holdings of underlying shares to lock in an effective sale price for the shares concerned by taking a “short” CFD position. Then, if the price of the underlying shares the investor holds falls, the short CFD positions will wholly or partly offset the losses incurred on the physical holdings.
Other benefits of CFDs are:
- No expiry period.
- No obligation to deliver the stock.
- Receive dividends on bought open positions.
- Receive interest on sold open positions.
- Significantly less capital required than physical shares, as you don’t have to physically purchase the stock.
- Buy or sell to open positions – double your trading opportunities.
- High leverage as a 10% cash deposit is required for the value of the bought or sold stock.
Benefits with CKL:
- 20 day free trial.
- No exchange fees and platforms costs.
- Competitive commission rates.
- Trade Local and International stocks (USA, Australasia and Europe).
- Over 7500 global CFD’s and 280 Australian stocks.
- Built in back office – view statements, orders, margin alerts and activity.
- Access to research, news, charts and economic calendar.
- Real time pricing and market depth.
- Flexible minimum accounts.
- Competitive bid and offer spreads.