CFD trading is a popular and accessible way to take a
position on the global financial markets.
Benefits of CFD trading include the low amount of margin
required and the extensive range of financial markets you can learn to
trade.
Although CFD trading can result in magnified profits it can
also mean losses too, so it is always important to make sure you manage your
risk effectively and that you try to understand as much as possible about the
nature of all the different financial markets.
It’s no secret that when most traders start their career
they concentrate on one market, for example forex trading, and try to learn as
much as possible about it.
There are always numerous factors influencing the markets at
any given point in time which makes keeping up-to-date with everything
happening in the global media crucial.
Over the weekend of 19/20 June the importance of China to
the global economy was underlined.China announced that it would look into
making its currency more flexible against other currencies, this followed
months of sustained political pressure from countries such as India and the US.
In order to help boost the price attractiveness of exports,
China has been following a policy that ensures the yuan remains undervalued
against other global currencies. While Chinese companies have benefitted, the
rest of the world’s goods have been relatively expensive in China.
When the markets in Europe and the US opened on the Monday
after the announcement both the FSTE 100 and the Dow Jones Industrial Average
gained 1% during the day.
It will be very interesting to note what happens to the
yuan, the effect it has on trade and the financial markets over the coming
weeks.
A good place to start trading CFDs is with IG Markets, which
is the UK’s leading CFD trading provider.
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