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CFD Articles and Information

L2 dealing and Direct Market Access for CFD traders

CFDs have become the weapon of choice for active stockmarket traders in recent years, offering the ability to go long or short, avoid stamp duty and use a small margin or deposit to finance positions.

History of gold with relation to currencies and its outlook

Much has been written about the current bull market in gold and how it compares to previous moves, in particular during the 1970s when the metal soared to at the time unimaginable heights.

Different types of volume studies

CFD trading clients will know that our research always uses volume as one filter and in some cases a back up for recommendations, and we believe it is an important trading tool. Within technical analysis, the examination of volume should always be hand in hand with examination of the trend and other technical patterns. Many traders ignore volume at their peril, and strangely enough there are very few volume based indicators compared to the many hundreds of price based signals available on current trading software. Although volume has great relevance to trading signals, price action is though always the ultimate determinant of buying or selling decisions.

Volatility continues despite some good results

Most of the best moves this morning were results-led but the overall market was still struggling again in line with equity moves around the world. The mining sector saw a bout of profit talking as metal prices fell, with Vedanta and Rio Tinto both down over 3%. At the top end though was Vodafone with forecast beating results. The group raised its operating profit forecast slightly this year to between £9.5bn and £9.9bn, driven by strong emerging countries and a stabilising European market.

Another markdown sees solid buying this morning

Once again Wall Street fell away at the end of Friday’s session, but after an early markdown shares in London saw some buying, with the bank sector leading the way. Over the weekend there were stories that Luqman Arnold, former CE of Abbey National, had unveiled a rescue plan for Northern Rock. Olivant, his vehicle, was prepared to subscribe for a minority shareholding in Rock but not intending to make an offer for the company.

Miners lead the way again as Footsie recovers

There was some strong buying early on today as traders stocked up on mining shares following BHP Billiton's approach to Rio Tinto yesterday. There is press talk of a revised higher offer and various other scenarios, and both stocks are up more than 5%. BG Group is another riser following a bullish report yesterday from its partner in the Santos oil field in Brazil.