CFD Trading by IFC Markets
Equity CFDs
Equities represent ownership rights in companies. Equity Contracts for Difference are instruments that allow investors take the advantage of speculating on price changes of certain stocks without getting directly involved in the ownership. Those who hold a position in Equity CFDs will get or will be charged dividend adjustments on defined dates, equal to the dividend announced by the board of directors.
The stock price is determined not only by global or structural factors, conditions in a certain business segment, but also by firm-specific features, its abilities to generate cash flows.
Equities as an asset class are believed to be more risky than fixed income securities and therefore provide higher level of return to compensate those risks.
Below one can find more information about traded companies, their stocks and important dates for dividend payouts. The table is given for informational purposes only and is not part of trading conditions.
Commodity CFDs
Commodity CFDs are considered an alternative type of derivatives which price and dynamics depend on the same factors and follow those, the real commodities, such as agricultural products, energy and other goods, do. Price determinants for commodities are mutual, as it may depend on supply stability, political and social factors, economic cycle stage which influences overall production process, weather and so on.
One of the main reasons for investing in commodities is their possible negative correlation with stocks and bonds and positive correlation with inflation, although commodity-linked derivatives may have higher volatility than equity. In periods of accelerated unexpected inflation commodities, especially energy-related, tend to grow more, offering a good hedge, while stocks and bonds are usually negatively correlated with unexpected inflation.
As an asset class commodities therefore provide diversification benefits and may result in large speculative profits.
The group's trading instruments are listed below:
Ticker Instrument Name
OIL Light Sweet Crude Oil (WTI)
good read but i am confused in how does price set the commodities to be mutual .. please make it simplified by a quick reply
good read but i am confused in how does price set the commodities to be mutual .. please make it simplified by a quick reply
Can you please clarify your question?
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Index CFDs
Index CFDs and their dynamics are a precise and exact investor estimation of a particular national economy or a sector performance. Indices value by its nature is a composite indicator of systematic factors which influence markets as a whole.
There are various types of indices which may be price or capitalization-weighted, therefore differently considered when taking decisions upon their relevancy in different situations. The Dow Jones Industrial Average (DJIA) for example is price-based, meaning that individual stock prices are crucial in its calculation. On the other hand S&P 500 is capitalization-weighted, with an increased role of the company size.
Investing in indices may be often considered a passive investment strategy, as its return characteristics actually reflect market rate of return. Indices are also an investment return benchmark for its sector or market.
The group's trading instruments are listed below:
CAC40 “Cotation Assistée en Continu” (40), French stock ind
DAX “Deutscher Aktienindex” (30), German stock ind
DJI "Dow Jones Industrial Average" (30), US stock index
FTSE100 "Financial Times Stock Exchange" (100), UK stock index
Nd100 "Nasdaq" (100), US stock index
SP500 "Standard & Poor’" (500), US stock index
NIKKEI "Nikkei" (225), Japan's stock index
USDIDX US dollar currency index