• Quick Guide To The Investment

    December 1, 2015

    Posted in: General

    Although the trading of CFDs (Contracts for Difference) is relatively new in Spain, may be an efficient and flexible to operate with actions. When trading CFDs you deposit a margin to open the position, so you do not need to pay the full value of the underlying financial product but only a deposit that could give a benefit of up to 20 times its initial contribution. Of course this also means that losses may exceed 20 times the margin contribution. In the trading of CFDs you simply 'buy' if you think the value of the stock will go up and 'sell' if you think the trend is bearish and the action is going to depreciate. The price of the shares of a company is affected by factors such as the performance of the company or the current economic climate.

    The publicly traded companies present their results several times a year. These figures give a clue to investors about the performance of companies and potential growth prospects. It is also important to take into account assessments of the media and if the predictions of analysts are right or not. If economic conditions are favorable the business will be better and therefore, the benefits are greater. The greater the benefit, the higher the dividends paid to shareholders, which makes the company's shares more attractive to investors. Unfavorable economic conditions, some companies find it difficult to sustain growth and profits. However, when investors are fearful of potential losses, the negative rumors spread quickly, reducing the demand for stocks and hence its price. The reason that more and more investors are interested in CFDs is the ability to profit in both bull and bear markets, since it is possible to open long or short positions not only on actions but also on other markets such as foreign exchange (forex) indices, commodities …

    A reliable supplier IG Markets is No. 1 in Spain for many causes. This company offers various courses free of CFDs, both face and online, to help you increase your knowledge of trading CFDs. Discover the trading of CFDs with IG Markets open a free demo. The above comments do not constitute investment advice and IG Markets therefore accepts no responsibility for any use that might be made of them. CFDs are a leveraged product and carries a high level of risk. CFDs may not be suitable for anyone, make sure you understand fully the risk involved and make a constant monitoring of your investment.

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