Contract For Difference
Stock Index
Golden Tangent finance provides global stock index CFDs, including: the Dow Jones industrial average index, Nasdaq 100 index, the standard & Poor's 500 index, the FTSE 100 index, Germany's DAX index, France CAC40 index.
the Dow Jones industrial average
the Dow Jones Industrial Average (Dow Jones industrial average index, referred to as' the Dow ') is one of the created by Charles Dow, the founder of the Wall Street Journal and Dow Jones & Company of several stock market index. He took this index as a measure of the development of the American stock market on the industrial structure, is one of the most United States market index.
Today, the average index, including the United States 30 largest and most well-known listing Corporation. Although the name mentioned in the 'industrial' these two words, but the fact of historical significance may than practical significance also come more, because today's 30 is formed between the enterprise. Most of them were already and heavy industry is no longer relevant. Due to the effect of stock compensation segmentation and other adjustments, it is currently only a weighted average, does not mean the average number of constituent value.
United States Nasdaq 100 index
NASDAQ (NASDAQ) is the name of the National Securities Dealers Association in 1968 to begin to create an automatic quotation system name. The feature is to collect and publish the OTC securities unlisted stock bidding. It has now become the world's largest stock exchange market. NASDAQ index is the index of the stock price of the Nasdaq stock market, the basic index is 100.
U.S. standard & Poor's 500 index
Standard & Poor's stock price index in the United States is also very influential, it is the United States the largest securities research institutions, the standard and the establishment of the Pool Co stock price index.
UK's 100 index
in the FTSE 100 index (FTSE 100 index by world-class computational financial institutions FTSE (FTSE) compiled. Since 1984, covering in trading on the London Stock Exchange listed financial commodity market value of the largest 100 stocks, investors in the world welcome one.
Germany DAX index
DAX index (also known as DAX Xetra, which is generally referred to as the Frankfurt DAX index), by the German exchange group (Bö Deutsche; Group RSE) launched a blue chip index. The index contains 30 major German companies. DAX index is all over Europe and London Financial Times Index of eponymous important securities index, one of the world securities market is also an important index.
French CAC40 index
French CAC 40 stock index is an important French stock index, consisting of 40 French stocks. CAC 40 by the Paris Stock Exchange (PSE) in the top 40 shares of the listing Corporation to prepare for the end of 1987, the base period. The index began to publish in June 5, 1988, reflecting the price fluctuations of the French securities market. The new CAC-General index is made up of 100 French stocks, the use of a wider range, but the CAC40 index is still regarded as the benchmark index.
stock index
stock index, stock price index. Stock exchange or financial services institutions prepared by the establishment of a reference index number, because the stock price fluctuations and volatility, investors are bound to face the risk of market prices.
Characteristics ofstock index
Class='star_en'>- stock index futures contract is not only effective to reflect the price index, while allowing investors to enjoy a variety of advantages:
- stock index futures contract is not only effective to reflect the price index, while allowing investors to enjoy a variety of advantages:
- electronic transactions convenient: no paper operation, so that investors no matter where they are, the transaction is not a drag.
- short selling: investors can borrow CFDs flexible short selling, no need to pay the additional costs and enjoy the interest of short selling index currency.
- Hedge: CFDs can efficient, effective and low into local portfolio hedging, especially market volatility during the period, investors do not need to sell assets to rebalance the portfolio risk.
Introduction
A contract for difference (CFD) is a contract between two parties, typically described as "buyer" and "seller", stipulating that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time (if the difference is negative, then the buyer pays instead to the seller). In effect CFDs are financial derivatives that allow traders to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets. CFDs are currently available in New Zealand, United Kingdom, Australia, Austria, Canada, Cyprus, France, Germany, Hong Kong, Ireland, Israel, Italy, Japan, The Netherlands, Luxembourg, Norway, Poland, Portugal, Romania, Russia, Singapore, South Africa, Spain, Sweden, Switzerland, and Turkey.
Margin Trading
Traders in CFDs are required to maintain a certain amount of margin. One advantage to traders of not having to put up as collateral the full notional amount of the CFD is that a given quantity of capital can control a larger position, amplifying the potential for profit or loss. On the other hand, a leveraged position in a volatile CFD can expose the buyer to a margin call in a downturn, which often leads to losing a substantial part of the assets.
