price

CFD (contract for difference) is a good way for traders to take advantage of a financial instrument without having to pay at a full price. Its a leveraged instrument that offers potentially big returns for a small outlay. Its a derivative of an underlying financial commodity, so it follows that a CFD's price is determined by that asset. In share trading how do you make sure that the prices are actually equivalent of each other?

In ASX there are four factors in place to make sure that the CFD's price is aligned with the price of the underlying:

Have you ever wondered who is responsible for the rise of gold prices? As a matter of fact there is no one responsible to set prices for gold. The price of gold is actually set by that of free markets, as this happens in a way to equalize supply and demand. In cases where demand exceeds supplies, prices are going to increase, and with the prices of gold going up, demand lessens when compared to the supply.

Investors want share prices to go up, so the capital value of their stock portfolio increases. Share price rises in stocks are also appreciated by share traders who are trading long, individuals who have superannuation or own a portfolio of shares. And if they've followed the basic rule of buying low and selling high, they would easily gain a profit from their share trading or an increased portfolio value. Having the share price go up is great for investors as it allows them to follow the basic maxim of buying low and selling high.