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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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2 Comments:

Blogger ukMethodology Dissertation said...

Well.... round about every blog posts online don't have much originality as I found on yours.. Just keep updating much useful information so that reader like me would come back over and over again.
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June 24, 2010 at 11:38 AM  
Blogger cfd said...

I never realized there was that much of a difference. Thanks for clearing it up.

Stockbroking

December 9, 2011 at 7:10 AM  

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