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Follow on Google News | IndependentInvestor.co.uk Advises CFD To Learn All OptionsAlthough many investors feel they only need to understand their one area of the market, it is imperative they learn all the finer areas and different methods and types of their particular instrument to offer them more choices for success.
By: Paul Fraiser IndependentInvestor.co.uk spokesperson says that ,'We understand that traders are generally more concerned about their own specific area of interest and would not like to go beyond it but we feel that it is essential for CFD traders for instance to know about the various types of CFDs ( http://www.independentinvestor.co.uk/ He adds, 'Listed, Unlisted and those that are exchange-traded comprise the three different types of CFDs. In the case of listed CFDs, the costs related to the financing as well as margins along with even the dividends are already inbuilt into the contract. Moreover, the bid-offer placed by the CFD provider in terms of its spread would be constant the entire day so that transactions can take place at that spread. The commissions on these listed CFDs too are only paid on the margin amount and not on the entire amount. The one advantage is that the trader would not get any margin calls and the position taken by him would stay till he closes it.' 'Unlisted CFDs are transactions between the trader and the broker and since a majority of the contracts are of the unlisted variety, the traders are dependent on the brokers to close positions. This also means that the cost of financing the position is deducted or paid on a daily basis depending on the position taken by the trader. Moreover, the trader may have to make additional margin payments should his position becomes a loss making one,' explains the spokesperson. 'Lastly there is the exchange-traded CFDs (http://www.independentinvestor.co.uk/ About Independent Investor A leading investing source of information, with delivering high quality information and facts guides, tutorials, and everything an investor needs to become a successful trader in the UK investment market. IndependentInvestor.co.uk facilitates a unique perspective of the investment industry, from picking out a broker through to implementing sophisticated trading systems. # # # IndependentInvestor.co.uk specialising in helping traders learn more about CFDs and how to trade them successfully. With a range of trading resources and materials, alongside regularly updated comparisons and reviews between the market's leading brokers End
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