Trading Library

A hostile takeover is a takeover which is against the wishes of the target company's board of directors - where the board had rejected the initial offer. A takeover is also considered hostile if the acquirer or the bidder makes an offer without informing the board about their intentions. A hostile takeover is the opposite to a friendly takeover where the joining is seen as beneficial and both companies work together in merging two companies together.

Contracts of Difference (CFDs) appeared in the decade of 80s in United Kingdom. They are now popularly known as equity swaps or CFDs in today’s institutional market. They are basically an agreement between the investor and the dealer or broker who provides Contracts of Difference to reconcile the difference between the opening and the closing price of a CFD trade position of an investor. The overall agreement is done on cash basis. So let’s learn about CFDs!

Pros and Cons of CFD Trading

Before beginning on your trading journey, you must first learn some share trading basics. You can start trading on the Australian sharemarket for as little as $500 plus brokerage costs, but most people start with $2000 minimum. Share trading involves the buying and selling or selling and buying of a stock – capital growth or capital decline for profit. Before you even starting buying and selling stocks like a mad man you must first ask yourself the following questions:

  • What do you want to achieve from your share trading?

So you’ve decided to invest in shares?

Oil Rig

Before the above question can be answered, it is noteworthy to say that oil price and the fluctuation happening in the US are interconnected in such a way that the extensive range of supply and demand driven independently has a big impact on the crude oil price.

Because of the above statement, the decline in the US dollar will cause a rising pressure on the crude oil price and the same thing goes for the US currency being pressured much by the crude oil price.

London Metals Exchange LME, shows a melting pot pouring molten steel

For more then 130 years now, The London Metals Exchange or LME has been the most prominent market for plastics and non-ferrous metals. Some of the options and futures contracts LME offers are for copper, nickel, aluminium, zinc, tin and lead. Moreover, they also offer two regional contracts for auminium alloy. The good news to all traders is that accurate and precise forecasts, analysis and price data of all the LME’s futures contracts may now be obtained and acquired. In addition, LME had a great move when they launched the very first futures contracts for plastics in the world in 2005.

Comparing Futures Brokers

You’ve probably been in the share trading business for quite some time now but has there ever been a point that you seriously thought of which tool you should choose for your trading and which broker you should use? If there hasn’t, you’d better be doing that now because futures trading has never been as risky as now and if by this time, you are still struggling with the way the stocks shares move, ask yourself if you are really ready to do trading futures.

Picking Market Direction Using Futures

Futures markets have always been used by many investors to have an idea on how the Australian share market will perform daily. Knowing whether the market will open with high or low value everyday helps the investor to decide on what to do with his stocks. In Europe and USA market, offshore futures review is one of the several ways to predict the direction of the market. This method is used to monitor how stock indices such as S&P 500 and FTSE traded the night before and this will help the investors determine the opening value of the particular stocks indices.

Exchange Traded Funds ETFs

Anyone who is looking for an Exchange Traded Funds or ETFs to invest on would definitely do a comparison of the providers and products first. This is the most basic technical step any knowledgeable investors would do. However, it can be a little bit difficult and complicated to do this when you are contemplating on trading in American Stock Exchange and in NASDAQ because of the so many choices and options that you would have to choose from. You would have to spend much of your time with the risk that goes with the wrong choice you will make.

Fundamental analysis is a method of forecasting the future price movements of a financial instrument based on economic, political, environmental and other relevant factors and statistics that will affect the basic supply and demand of whatever underlies the financial instrument. In practice, many market players use technical analysis in conjunction with fundamental analysis to determine their trading strategy. Fundamental analysis focuses on what ought to happen in a market. Factors involved in price analysis: Supply and demand, seasonal cycles, weather and government policy.

It is important to be aware of the background of the currency pairs you choose to trade. This is a background piece about the Australian Dollar and the factors that influence the Aussie currency

  • Accounts for approximately 5% of the total volume of foreign exchange transactions (approximately 1.9 trillion dollars a day).
  • Its popularity is due to the fact that there is little government intervention in the currency and a general view that Australia has a stable economy and government.
Is Trading Gambling

Is trading gambling? It’s a question that’s bound to pop in your mind if you’re an active trader in the markets. Trading seems like gambling. You risk a portion of your capital into this thing: this concept we call a market. You put in your money and your money can do one of three things: return you an increase in capital, return you the same amount or return you less. Very similar to putting in money into the slot machines and getting those returns isn’t it? So are traders gamblers or not? Let’s examine it.

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