TAILIEUCHUNG - Retail Contracts for Difference

After recent accounting scandals in once high-flying firms like Enron and WorldCom, man- agement behavior has been under close scrutiny by regulators, financial media, and researchers. Jensen (2005) argues that the dramatic increase in corporate scandals around the turn of the cen- tury can be explained by agency costs of overvalued equity: when a firm’s equity is substantially overvalued, managers are forced to take value-destroying actions (some perhaps fraudulent) to satisfy the market’s unrealistic growth expectations. One action that firms often take is to acquire other companies using their overvalued equity. Recent studies showthat some firms engage in certain activities that inflate their equity values or prevent their. | Retail Contracts for Difference Standard Bank Content Executive Summary What is a CFD Who are the participants Advantages of trading CFDs Features and benefits of CFDs Reasons for using CFDs Risks and risk management Margins Product Comparison Trading interest and other charges Trading CFDs and cash flow examples How to register to trade CFDs Glossary of terms 1 Executive summary Contracts for Difference CFDs can be hard-working additions to any portfolio. They provide a way to hedge out the risk a portfolio is exposed to as well as to speculate when the belief is that the price of a share will change. CFDs provide investors with the ability to gear leverage their investment while avoiding many of the costs of trading in the underlying instrument. Long or short trades can be executed easily and cost-effectively. Standard Bank SBSA offers you the opportunity of enjoying all the features of CFD trading using the Online Share Trading website which is managed by Standard Financial Markets Pty Ltd OST . This booklet focuses solely on CFDs and explains how they work and the procedures to get started. In short CFDs are a cost-effective alternative to direct share trading. A simplified example of how a CFD works Trader A Trader A is confident that XYZ Limited shares are set to rise. R50 000 cash is available. The share price is R100 so 500 shares are bought. Two months later the price is R106 75 the trader sells and so makes R3 375 profit R6 75 per share multiplied by 500 shares a return of 6 75 . For this example we assume zero costs. Trader B Trader B takes the same view but buys CFDs rather than the shares. The only cash required to enter into the trade is the Initial Margin amount of R7 500. This trade also makes a profit of R3 375 refer to the Long trade example later in this booklet over the same period. This is a return of 45 of the amount invested seven times the profit made by trader A. Discover how and why this performance can be achieved by reading through this

• Đầu tư Chứng khoán
• including existing
• pharmaceutical policies
• market situations
• Abiotic Stress
• Epigenetic Chromatin
• Regulators as Mediators
• vegetation
• including
• cropland
• regional
• existing
• multiple medicines
• following guidance
• recommendation
• men and women