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22 January 2010

Contracts For Difference

Contracts for difference

Contracts for Difference strains, and have discovered this amazing product, and thought enough of to bring it to the main stream financial world?

Comparing Futures, Options & Contracts Difference:

Most financial products that trade billions every day on world stock markets have existed for decades, if not hundreds of years. For example, futures markets have a history dating back to 1710 when the Japanese rice traded on the world's first official futures exchange. Since then there have been many different financial products like options trading, options on futures market, and of course, currency or forex. These are your main stream financial products, and in amongst the mix of mainstream financial products, CFDs are making great progress.

Introduction of CFDs:

Actually since launched CFDs to retail public in 2000, the interest has been overwhelming. Nobody could ever have predicted the pace at which the investing public went to CFD trading, and it continues to expand rapidly throughout the world. CFDs began back in the 1990s by a London derivative brokerage firm called Smith New Court later branch out of Merrill Lynch. Originally CFD trading was a way for clients to short sell in the market while using leverage and as a double bonus customers were able to avoid stamp duty, thereby reducing costs further.

GNI Touch was the first company to introduce CFDs to retail customers, the public back in 2000 and since that steady start, they have literally exploded across the world. In 2007 noted an investment survey by Investment Trends to CFDs grew by 100% annually (in Australia) and was looking to continue their tremendous growth in the near future.

MF Global realized that CFD trading will be enormous, and eventually bought out of GNI in October 2002 to create a dominant force in both futures and CFDs.

Who are the major CFD Brokers?

Today there are dozens of CFD brokers all over the world with the greatest threats are MF Global, CMC Markets, IG Markets, First Prudential Markets, Sonray Capital Sax bank, GFT, City Index and Macquarie Bank to name a few.

Besides the number of brokers offering contracts difference is the number of world stock markets, which you can act on.

For example, if you open an account with any of the major CFD brokers have access to the world's stock markets to focus on: Australia, Britain, Germany, Hong Kong, Japan, USA, Singapore, Russia, Canada, Finland, Hungary, Italy , Spain, Ireland, New Zealand and many others around the world.

After that, as the world increase their capacity to rapidly introduce broadband, the number of people who deal in world stock markets using CFDs will only continue to grow.

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