|
|
A History of Contracts for Difference Trading |
|
From the seed of an idea to a financial trading method available on mobile phones the world over, Contracts for Difference trading has come a long way in a short space of time.
A History of Contracts for Difference Trading
Born in the early 1990s, CFD trading was developed on the derivative desk of London trading firm Smith New Court. It was initially seen as a simpler way for hedge funds to short sell in the London Stock Exchange and soon became available to individual investors.
Part of the attraction of CFD trading was that it allowed a trader to benefit from leverage and avoid stamp duty on any profits, neither of which was provided by standard share dealing. However, the leverage also meant that traders could lose more than their initial deposit.
Financial Spread Trading and Contracts for Difference are financially leveraged forms of trading, these products carry high levels of risk, you may lose more than your initial stake. If you are trading through Financial Spread Trading and CFD Trading, you should only invest using money that you can afford to lose; always ensure you fully understand the risk. Contracts for Difference and Spread Trading might not be suitable for your trading needs. Seek independent advice when appropriate.
Contracts for Difference Trading
CFD trading also allowed, and continues to allow, traders to speculate on markets without owning the underlying shares. This meant CFD traders were able to sidestep the time-consuming and expensive exercise of borrowing stock to trade on a declining market.
Since the 1990s, CFD trading has become increasingly accessible. During the dot com boom, online CFD trading platforms came to the fore and by the turn of the century CFDs were widely available in the UK.
Most recently, in October 2009, City Index enhanced the industry further with the launch of its multi award-winning mobile CFD trading platform - City Trading™.
As CFD trading approaches its 20th anniversary, it could be the perfect time to get involved.
City Index Account / City Index Website
Contracts for Difference (CFDs), margined forex and financial spread trading are leveraged products and may not be suitable for everyone. Losses can exceed your initial deposit. Please ensure that you fully understand the risks involved and seek independent financial advice where necessary.
A History of Contracts for Difference Trading, last edited by F. Lawson, 24-Apr-12.
For related articles please see:
City Index - last update: 08-September-2011
City Index, a global leader in CFDs has been awarded Best Online CFD Provider at the MoneyAM Online Finance Awards. A City Index Account offers a wide range of markets and - read more - City Index.
The Benefits of CFD Trading - last update: 30-April-2012
The Benefits of CFD Trading - CFD trading allows you to profit from both falling and rising markets. Investors can also take advantage of leveraged trading. Leverage plays a central - read more - The Benefits of CFD Trading.
CFD Trading Guide to Managing Risk - last update: 25-April-2012
CFD Trading Guide to Managing Risk - It is imperative that traders develop a comprehensive CFD trading strategy. Our CFD trading guide aims to help both new and experienced traders manage - read more - CFD Trading Guide to Managing Risk.
City Index - Best Online CFD Provider 2009 - last update: 25-April-2012
City Index, a global leader in Contracts for Difference, FX, and spread trading has been awarded Best Online CFD Provider 2009 at the MoneyAM Online Finance - read more - City Index - Best Online CFD Provider 2009.
Index CFD Trading with City Index - last update: 24-April-2012
Index CFD Trading with City Index - Most indices are quoted around-the-clock, allowing you to trade 24-hours a day even if the underlying market is closed. Similar to - read more - Index CFD Trading with City Index.
City Index CFD Trading Platform - last update: 20-April-2012
City Index CFD Trading Platform - Through the City Index CFD trading account, investors can access their professional online trading platform, offering a wealth of - read more - City Index CFD Trading Platform.
CFD Pairs Trading - last update: 24-April-2012
CFD Pairs Trading - through pairs trading, an investor aims to create an overall profit by taking two opposite CFD trading positions on a pair of - read more - CFD Pairs Trading.
CFD Mobile Trading - last update: 24-April-2012
CFD Mobile Trading - Since the release of City Trading, the percentage of total online CFDs placed on the mobile platform has risen from less than 3% to 15%, which underlines just - read more - CFD Mobile Trading.
FTSE 100 CFD Trading - last update: 24-April-2012
FTSE 100 CFD Trading - The FTSE 100 is a weighted index of the highest-performing 100 companies on the London Stock Exchange. Together, these 100 companies represent - read more - FTSE 100 CFD Trading.
CFD Chart Patterns - last update: 24-April-2012
CFD Chart Patterns - Markets will often behave in a certain way as they approach the round number levels, these key psychological levels can - read more - CFD Chart Patterns.
CFD Trading Advice - last update: 24-April-2012
CFD Trading Advice - Sandy Jadeja, Chief Technical Analyst at City Index, is widely recognised as one of the financial trading industry's most respected technical analysts. Here, calling - read more - CFD Trading Advice.
Identifying a CFD Trading Bubble - last update: 24-April-2012
Identifying a CFD Trading Bubble, a look at the five stages of a bubble, as identified by American economist Hyman Minsky. Stage one is displacement which occurs - read more - Identifying a CFD Trading Bubble.
Using CFDs to Hedge Share Portfolios - last update: 24-April-2012
Hedging with CFDs: By using CFDs to hedge against an existing share position that you may hold, you can protect your overall profits or losses from deteriorating if you feel that share prices may - read more - Using CFDs to Hedge Share Portfolios.
What is CFD Trading? - last update: 24-April-2012
What is CFD Trading? CFD trading allows you to speculate on the price movements of financial markets without ever owning the underlying instrument. It is - read more - What is CFD Trading?.
Hedging Trades with Contracts for Difference - last update: 24-April-2012
Hedging Trades with Contracts for Difference - CFDs are often used as a hedging tool by investors to offset against potential losses made in their portfolios by short selling shares. Contracts for Difference let investors - read more - Hedging Trades with Contracts for Difference.
Protecting Your Shares with CFD Trading - last update: 24-April-2012
Protecting Your Shares with CFD Trading: By trading shares through CFDs investors can hedge a loss with a profitable CFD trade if they - read more - Protecting Your Shares with CFD Trading.
CFD Trading or Financial Spread Trading? - last update: 24-April-2012
CFD Trading or Financial Spread Trading? CFD Trading and Financial Spread Trading are very similar, but they differ in some crucial ways. Here, award-winning - read more - CFD Trading or Financial Spread Trading?.
Spread and CFD Trading on Mobile Platforms - last update: 24-April-2012
Spread and CFD Trading on Mobile Platforms City Index: City Index has since been voted 'Best Mobile Trading Platform' at the 2010 and 2011 MoneyAM Online Finance - read more - Spread and CFD Trading on Mobile Platforms.
CFD Trading and Spread Trading Compared - last update: 24-April-2012
CFD Trading and Spread Trading Compared: When comparing CFD trading and spread trading it is possible to notice some differences. CFD trading created and average return of - read more - CFD Trading and Spread Trading Compared.
Why Trade with CFDs? - last update: 24-April-2012
Why Trade with CFDs? There are a number of reasons as to why CFD trading has become an invaluable trading method. CFD trading allows you to - read more - Why Trade with CFDs?.
About Contracts for Difference Trading - last update: 24-April-2012
About Contracts for Difference Trading: CFD trading allows you to trade on a huge range of markets without ever owning the underlying instruments. CFD trading for beginners can be - read more - About Contracts for Difference Trading.
Spread Trading or CFD Trading - last update: 24-April-2012
Spread Trading or CFD Trading? It is important to know the often subtle differences between spread trading and CFD trading. Here we review tax, costs, contracts, currencies and - read more - Spread Trading or CFD Trading.
City Index See Significant Increase in Mobile CFD Trading - last update: 24-April-2012
Mobile spread betting and CFD trading have already created a strong foothold in trading behaviour. At City Index, more investors are trading through the company's first live spread betting and CFD trading app for - read more - City Index See Significant Increase in Mobile CFD Trading.
A History of Contracts for Difference Trading - last update: 24-April-2012
Contracts for Difference trading has come a long way since its beginnings in the early 1990s. City Index looks at the history of CFD trading and how it allows traders to speculate on markets without - read more - A History of Contracts for Difference Trading.
Using Technical Analysis for CFD Trading - last update: 24-April-2012
Technical analysis can be a vital tool in CFD trading particularly for short-medium term traders. CFD broker City Index considers some ways of using technical analysis for CFD trading and - read more - Using Technical Analysis for CFD Trading.
City Index - Trading CFDs on the Move - last update: 24-April-2012
Mobile CFDs trading allows you to react quickly by both monitoring live prices and trading on the move. When City Index launched its first CFD trading app it proved extremely popular because - read more - City Index - Trading CFDs on the Move.
City Index - CFD Trading - last update: 24-April-2012
CFD trading allows investors to benefit from leverage and avoid stamp duty on any trading profits. CFD trading also lets you speculate on markets without owning the underlying - read more - City Index - CFD Trading.
|
|
|
Warning: Contracts for Difference (CFDs), margined forex and financial spread trading are leveraged products and may not be suitable for everyone. Losses can exceed your initial deposit. Please ensure that you fully understand the risks involved and seek independent financial advice where necessary.
The contents of this website are for information purposes only and not intended as a recommendation to trade nor does the content constitute investment advice. All reasonable efforts have been made to present accurate information. Neither CFDs-Online.com nor any contributing company or individual accepts any responsibility for any use that may be made of the above or for the correctness or accuracy of the information provided.
* Tax law is subject to change. It can also differ if you pay tax in a jurisdiction other than the UK.
|
|
