A few years ago, there
has been a 22% plunge in Shares in Standard Chartered rooted from accusations
by US regulators of business dealings with Iran.Such happenstance are frivalent
in the world of CFD. But what exactly causes these and how can you as a trader
profit from such situations in the market. Below is a trading guide that will
help make this a possibility in your endeavor of CFD trading.
CFD
CFDs or Contracts for Difference
is another way to trade compared to traditional forms of trading given that you
can engage in it without you actually owning the underlying instruments. How do
you trade then? You take a position on the future price movement that you have
projected in the market, such as a Standard Chartered (LSE) share CFDs.
Basically, CFDs in nature are an agreement between two entities to exchange the
difference between the opening and closing price of a contract.
Trading
Standard Chartered Shares
You can take a position
on Standard Chartered's share price through your CFD trading account. It
is presented as Standard Chartered (LSE) CFD within the City Index CFD trading
platform. When expecting the bank’s share price to dip further, you start by
going short and selling your Standard Chartered CFD. If you have projected the
price to increase however, you can start going long and buy Standard Chartered
CFD in the market. When you notice that your trading decisions have put you in
a very lucrative situation, you are expected to gain profit depending on what
you have declared as investment. However, if your projects do not go
accordingly, you will take heavy losses that may even potentially exceed what
you initially deposited as investment. This is where your risk management in
your trading plan comes in and having this possibility in mind is very
important. Thus using the necessary tools in the City Index website is a must
to analyze and study how you will go about with your trades.
As much as it seems
like a very complex form of trading, getting a head start with CFD is very easy
and can be done simply by applying for an account. Once you have opened your
mind into trading CFD, you open the possibility of taking a position on popular
markets such as shares, currencies, indices and many more.
Trading
Providers
With the evolution of
the markets today, most traders are discovering and reaping the benefits of
derivatives, and many of them are exploring them through a competent trading
platform.
They transact in excess
of 1.5 million trades every month from over 50 countries and provide total
access to a wide array of trading instruments such as Forex, indices, and
commodities. Thanks to modern day technology, the performance of the platforms
improve & evolve which enables to expand the range of different services
available at your disposal. With this innovation, traders benefit from being
educated with the necessary trading tools that enable the user to analyze
competitive spreads and transparent pricing.
Despite CFD trading
being a leveraged product That can result in great losses that may lead up to
losing more than what you have invested in, with the right amount of tools, you
will be able to have educated movement and projections when it comes to CFD trades