CFD's Level 1 final
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Transcript of CFD's Level 1 final
![Page 1: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/1.jpg)
CFD’s Level 1
![Page 2: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/2.jpg)
•What are CFD’s?•Why do they exist?•How do they work?•Trading CFD’s using Saxo Trader II
Agenda
![Page 3: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/3.jpg)
What are CFD’s?(Contract For Differences)
• Enables investors to participate in the price movements of stocks without ownership of the underlying share
• Based on either individual stocks or indices• Invented in the UK• CFDs enable leverage of stock-related investments
Nominal Value
Margin required
Nominal Value
![Page 4: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/4.jpg)
Why do they exist?• Potential tax
breaks
• Leverage
• Diversification
![Page 5: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/5.jpg)
How do they work?• A CFD is a derivative of either a stock or an index• A CFD reflects the value of the underlying asset/share +/- 0.1% - (this is the risk
premium)• You trade the amount of shares you want, but only use a fraction of the capital
Price difference is +/- 0.1%
Green prices. What you see is what you get.
![Page 6: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/6.jpg)
Trading CFD’s using Saxo Trader II
• Trading made simple with our easy-to-use interface
• Clearly defined pricing, margins and costs
![Page 7: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/7.jpg)
Account Summary
![Page 8: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/8.jpg)
Trading CFD’s with Saxo Bank
![Page 9: CFD's Level 1 final](https://reader034.fdocuments.us/reader034/viewer/2022052604/568bf4351a28ab89339d29e3/html5/thumbnails/9.jpg)
Thank you