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Wednesday, November 4, 2009

CFD's (Contracts for Difference) Trading Benefits

  • The settlements are made through cash payments.
  • The customer has benefits over conventional share dealing.
  • Customers can open a position without having to put up the full underlying value (known as Gearing).
  • Customers can sell or buy any share that they quote, to profit from rising or falling prices (So long or short type).
  • There is no irritating wait for an execution (Immediate dealing).
  • CFDs have no fixed expiry date, providing customer the freedom to close his position when he decides. As the customer position remains open, his account is credited or debited to reflect dividend and interest adjustments.
  • The account is debited to reflect interest adjustments and credited to reflect any dividends (Long positions).
  • The account is credited with interest adjustments and debited to reflect any dividends (Short positions).
  Click here to see how a CFD works is through an example.

OFB offers 24 hours internet on-line trading service to deal in thousands of financial instruments such as Commodities, Treasuries, Share CFDs, Stock Index CFDs, Foreign Exchange and Precious Metals through its principals.

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What is Trading on Equity?

Trading on equity is the process of buying and selling of company stock indices, shares and sector CFDs. Shares of big public companies are bought and sold through the major stock exchanges such as New York Stock Exchange, London Stock Exchange, and Tokyo Stock Exchange which act as managed auctions for stock trades. But, stock indices in small companies are bought and sold in OTC (over-the-counter) markets.

Deals can be performed by the owner of the stocks, or by an agent. Two types of trading Proprietary trading, also called principal trading, and Agency trading. Proprietary trading is buying and selling for the trader's own profit or loss. The principal is the owner of the shares. 


Agency trading defines an agent (usually a stock broker) who buys and sells stocks, on behalf of a client. Stock brokers are paid a commission for performing the trade.


OFB offers 24 hours internet on-line trading service to deal in thousands of financial instruments such as Commodities, Treasuries, Share CFDs, Stock Index CFDs, Foreign Exchange and Precious Metals through its principals.

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