Thinking of Trading Contracts for Difference (CFDs)?
ASIC, 24 , 2010

Summary

Thinking of Trading Contracts for Difference (CFDs)? by the Australian Securities and Investments Commission (ASIC) is a comprehensive guide about the complexities and risks associated with trading CFDs. The booklet explains the mechanics of CFDs, their differences from traditional shares, and highlights significant risks, including leverage, counterparty, and liquidity risks.

Our verdict

In our opinion, ASIC's booklet is a must-read for beginners, and anyone considering CFD trading. Its clear, no-nonsense approach to explaining the intricacies of CFDs, and the robust risk management strategies it advocates provide a solid foundation for making informed trading decisions.