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'CFDs: The Definitive Guide to Contracts for Difference' Is a Book That Provides an Essential Guide to These Exciting Products.

DUBLIN, Ireland -- Research and Markets ( has announced the addition of the "CFDs: The Definitive Guide to Contracts for Difference" report to their offering.

Author: David James Norman

CFDs, or contracts for difference, provide the investor with unparalleled trading opportunities in today's volatile markets.

CFDs are derivative products that allow you to trade on the price movements of securities and indices without ever owning the underlying asset. They offer a leveraged, flexible, cost-effective alternative to traditional trading methods. You can go long or short and hedge open positions in other tradable instruments, thereby enabling you to trade whatever the market conditions.

This book provides an essential guide to these exciting products. Structured in five parts it takes you through everything you need to know, from basic principles, mechanics and strategies, through to understanding the psychology behind your trading, including:

- What a CFD is, how it is priced, and the range of different CFDs and markets available to trade.

- The principles of CFDs and the mechanics of opening, funding and maintaining a CFD trading account, and the different types of account that are available.

- The logistics of trading CFDs including details of tradable markets, the range of underlying instruments and popular trading strategies.

- The benefits and risks of trading CFDs including leverage, shorting, hedging and tax.

- A comparison between CFDs and other trading instruments such as spread betting, covered warrants, options and futures.

- Controlling risk through the use of stop loss limits, trailing stops, guaranteed stops and limited liability orders.

CFDs are an essential part of the smart investor's toolbox, and this book gives you everything you need to make the most of them.

Key Topics Covered:



Brief overview of the history of CFDs, and the size of the market today

What is a CFD?

What range of CFDs are available?

Describe how financial markets are developing and the opportunities open to a range of investors, retail and professional, with regard to CFD trading

How has the business of investing and trading changed in the last few years to enable CFD customers to access electronic markets directly?

What are the opportunities and challenges now presenting themselves to various market operators with regard to trading CFDs?

The Principles of CFDs

Why have CFDs become a very popular trading instrument?

Leverage, shorting and hedging

How are CFDs Priced?

What is the difference between trading CFDs and shares?

What is the difference between trading CFDs and spreadbetting?

How does CFD leverage work?

The Mechanics of Trading CFDs

How does a customer gain access to various online CFD trading venues?

Direct Market Access (DMA)

Market maker quoting

Broker Intermediation

Trading Software

What to expect from broker and market maker trading software

Permitted Order Types and strategies

Limit, stop loss, MIT, OCO, If Done, Trailing stops etc

Charting and technical analysis

MACD, Stochastics, Bolinger, Relative strength, etc

News, company information and market data

Describe some of the different options available

Value Added Services

In-House seminars and education programs

Account Set up

Different types of trading account (Execution only, discretionary, advisory)

Margin mechanics

How does margin work?

What charges can be expected?

Rollover and overnight charges

FX charges for positions not in domestic currency

Trading Costs and Commissions: What charges can you expect?

Market Maker Spreads

Broker commissions

FX Charges for trading in non-domestic CFDs

FX Baskets

Placing an Order

How to place an order

Order tickets

Using limits and stops

Monitoring an open position


P and L

Calculating margin and margin calls

Case study example

Trading strategies for active traders and hedgers


Long/Short: Using Leverage

Low cost entry and exit opportunities

How to use the 'depth of market' in the electronic order book

Long Term CFD trades: when does financing make it less worthwhile?

Pairs Trading

Taking advantage of stock price variation

Sector trading

Energy versus Metals?

Hedging strategies

Reducing risk of holding shares

When to use CFDs over shares

Taxation management

The new 'bed and breakfast'

More exotic CFD strategies combined with other instruments

CFD Basket trading

Combining positions in shares, options, and futures

Understanding and improving your trading style

How well do you trade?

What trading plan are you using?

What order types are you using?

Running winners for longer and losers for less long

Stop loss orders

Limit orders

If Done, OCO and If Touched order types

How trading style and performance can be improved

Use a trading plan

Set entry levels and exit points

Volatility and fair value

Risk & Regulation

Different risks associated with trading CFDs

Credit risk

Execution risk

Market volatility

Current Regulation of CFDs

The FSA and the European Commission have key roles to play in the future of CFDs in financial markets and even slight changes to regulations regarding these instruments could have marked effects on the industry

What FSA regulations govern the use of CFDs?

How is the new European directive MiFID changing the requirements for best execution?


What is the future for CFDs?


Directory of CFD Brokers

For more information visit
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Publication:Business Wire
Date:Sep 15, 2008
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