Contracts For Difference

Sonray Capital collapsed last month owing 4000 investors about $47 million. Named using the last three letters of its co-founders surnames, Russell Johnson and Scott Murray - "son" and "ray" -- the firm was set up in 2003 as the sharemarket was starting to fire. It is understood that the pair drew salaries of $120,000 a year each, but the company had a high staff turnover rate.

ASIC (Australian Securities and Investments Commission), Australia’s corporate watchdog, is warning that many retail traders and investors as well as investors utilising self-managed superannuation funds (SMSF) are risking to be financially devastated by investing in high risk investments called CFDs (Contracts For Difference).