Why Tradeview Forex?
TradeView Forex offers immediate access to trading tools:
- Prices on stocks
- Sectors
- Indices
- Currencies
- Commodities and Interest rates
It doesn't matter where and how you want to trade: we offer online and mobile trading services that keep you ready for the next trade. Our team of experts, dealers and customer service specialists are always available to provide support to each customer.
TVF provides spreads and margins for every platform to ensure accurate, competitive information, fair prices and flawless execution for CFD trading.
- Streaming tradeable prices through our platforms allow you to act in real time on the very latest price movements.
- Our prices track the underlying instruments effectively so you know that your trade will result in your expected profit (or loss).
- No matter if the market is volatile, we will continue to offer fair prices and to make our best to provide the market access you need to open and close positions whenever you want to.
These are the products we offer though our Tradeview Forex platforms:
EQUITIES
Trade CFDs on thousands and thousands of individual equities listed worldwide. Unlike traditional equity investing, you can choose to go long or short. The choice is yours.
STOCK INDICES
Choose CFDs on overall stock indices all over the world for a broader view. Some of the markets we trade in are: UK 100, Wall Street, US TECH 100, Japan 225 and the Germany 30.
CURRENCIES
Currency trading at Tradeview Forex CFDs offers access to about 24 currency pairs.
PRECIOUS METALS AND COMMODITIES
CFDs also offer a straight-to-the-point and affordable way to trade the price movements of commodities that are popular (such as gold, silver and oil). Also, we offer CFDs on the principal commodities markets including coffee, sugar, pork bellies and wheat.
CFD Information
WHAT ARE CFDs?
A contract for difference (also known as CFD) is a contract between two parties: buyer and seller, specifying that the seller will pay to the buyer the difference between the current value of an asset and its value at contract time.
However, if the difference happens to be a negative one, then the buyer pays to the seller instead. For example, when applied to equities, this kind of contract is an equity derivative that allows investors to speculate on share price movements, without the need for ownership of the underlying shares.
CFDs give investors the chance to take long or short positions. CFDs have no fixed expiry date or contract size, unlike futures contracts,. Trades are conducted on a leveraged basis with margins typically ranging from 1% to 20% of the notional value for CFDs on leading equities.
WHY TRADING CFDs?
LEVERAGE YOUR INVESTMENT POTENTIAL
CFDs are traded on leverage, so it's possible to increase your exposure to an underlying asset from the same initial
investment. To open a CFD trade, you need to deposit only a part of the total trade value, usually an amont around
1-20 percent, allowing you to take a larger position that would be harder to take if you had to fund it in full.
Leverage is great news if the market moves in the direction that you expect, but it becomes a risk if the market
moves against you.
TRADE FINANCIAL MARKETS AROUND THE WORLD
CFD trading gives you access to a broad range of markets that usually are not available to retail investors. It is as
easy to trade on the price movement of commodities such as oil or gold as it is to trade an individual equity. CFDs
also let you to speculate on whole indices or sectors from one single trade.
PROFIT WHEN MARKETS FALL AS WELL AS RISE
By 'going short' (that is, selling), you can profit from a falling market as easily as you could profit from a rising
market by buying it. If you think that a company or a market will have a loss of value in the short term,then you can
use CFDs to sell it now, with the expectation that you can buy it later. However, if the price of your trade moves against
you, your position will result in a loss.
HEDGE OTHER INVESTMENTS
Since CFDs offer the possibility of going easily as short as long, they can be used to provide a certain insurance
against price falls in a portfolio. For example, if you have a long-term portfolio that you wish to keep, but you feel
that there is a short-term risk to the value of your investments, you could use CFDs to damage-control a short term loss
by 'hedging' your position. If the value of your portfolio falls, then the profit in the CFDs should offset these losses.
Currency Exchanges
Currency Exchanges
|
Exchange
|
Margin
|
Transaction fee per unit
|
EUR/USD |
FX |
0,5 - 1% |
$0.00 |
USD/JPY |
FX |
0,5 - 1% |
$0.00 |
GBP/USD |
FX |
0,5 - 1% |
$0.00 |
USD/CHF |
FX |
0,5 - 1% |
$0.00 |
USD/CAD |
FX |
0,5 - 1% |
$0.00 |
AUD/USD |
FX |
0,5 - 1% |
$0.00 |
EUR/GBP |
FX |
0,5 - 1% |
$0.00 |
EUR/JPY |
FX |
0,5 - 1% |
$0.00 |
GBP/JPY |
FX |
0,5 - 1% |
$0.00 |
CHF/JPY |
FX |
0,5 - 1% |
$0.00 |
EUR/CHF |
FX |
0,5 - 1% |
$0.00 |
NZD/USD |
FX |
0,5 - 1% |
$0.00 |
GBP/CHF |
FX |
0,5 - 1% |
$0.00 |
AUD/JPY |
FX |
0,5 - 1% |
$0.00 |
EUR/AUD |
FX |
0,5 - 1% |
$0.00 |
EUR/CAD |
FX |
0,5 - 1% |
$0.00 |
NZD/JPY |
FX |
0,5 - 1% |
$0.00 |
CAD/JPY |
FX |
0,5 - 1% |
$0.00 |
GBP/CAD |
FX |
0,5 - 1% |
$0.00 |
GBP/NZD |
FX |
0,5 - 1% |
$0.00 |
GBP/AUD |
FX |
0,5 - 1% |
$0.00 |
AUD/NZD |
FX |
0,5 - 1% |
$0.00 |
AUD/CHF |
FX |
0,5 - 1% |
$0.00 |
USD/MXN |
FX |
0,5 - 1% |
$0.00 |
Futures
Futures
|
Symbol
|
Exchange
|
Margin
|
Transaction fee per unit
|
USD Index |
USD Index |
1% |
$0.00 |
Crude Oil |
GCL |
CME |
5% |
$0.07 expires 10/20/09 |
Natural Gas |
GNG |
CME |
5% |
$0.03 expires 10/28/09 |
10 Yr US T-Note |
ZN |
eCBOT |
1.50% |
$0.05 |
30 Yr US T-Bonds |
ZB |
eCBOT |
1.50% |
$0.05 |
CAC 40 |
FCE |
Euronext |
5% |
$1.50 expires 12/18/09 |
DAX |
FDAX |
EUREX |
5% |
$1.25 |
Dow Jones 30 |
DJI |
INDEXDJX |
5% |
$3.00 expires 12/18/09 |
DJIA |
ZDJ |
eCBOT |
5% |
$3.00 |
FTSE 100 |
FTSE |
LIFFE |
5% |
$1.50 |
NASDAQ |
ZND |
CME |
5% |
$0.75 expires 12/18/09 |
Nikkei 225 |
NKD |
CME |
5% |
$3.00 |
S&P 500 |
ZSP |
CME |
5% |
$0.30 expires 12/18/09 |
Copper |
GHG |
CME |
5% |
$0.02 expires 10/28/09 |
Gold |
GGC |
CME |
5% |
$0.25 |
Silver |
GSI |
CME |
5% |
$0.03 |
Soybeans |
ZS |
eCBOT |
5% |
$0.03 expires 11/13/09 |
Equities
Equities
|
Symbol
|
Exchange
|
Margin
|
Transaction fee per unit
|
Altria Group |
MO |
NYSE |
20% |
$0.1 |
American Express |
AXP |
NYSE |
40% |
$0.1 |
Amgen |
AMGN |
NASDAQ |
20% |
$0.18 |
Apple Computer |
AAPL |
NASDAQ |
20% |
$0.3 |
Applied materials |
AMAT |
NASDAQ |
20% |
$0.1 |
Boeing Co |
BA |
NYSE |
20% |
$0.1 |
Bristol Myers Squibb |
BMY |
NYSE |
20% |
$0.1 |
Caterpillar |
CAT |
NYSE |
20% |
$0.11 |
Cisco Systems |
CSCO |
NASDAQ |
20% |
$0.1 |
Dell Computer |
DELL |
NASDAQ |
30% |
$0.1 |
Delta Airlines |
DAL |
NYSE |
40% |
$0.1 |
Ebay |
EBAY |
NASDAQ |
20% |
$0.1 |
EMC Corp |
EMC |
NYSE |
30% |
$0.1 |
Exxon Mobil |
XOM |
NYSE |
20% |
$0.23 |
General Electric |
GE |
NYSE |
30% |
$0.1 |
Goldman Sachs |
GS |
NYSE |
30% |
$0.2 |
Google |
GOOG |
NASDAQ |
30% |
$0.81 |
Hewlett Packard |
HPQ |
NYSE |
20% |
$0.1 |
Home Depot |
HD |
NYSE |
30% |
$0.1 |
IBM |
IBM |
NYSE |
20% |
$0.23 |
Intel Corp |
INTC |
NASDAQ |
20% |
$0.1 |
Johnson and Johnson |
JNJ |
NYSE |
20% |
$0.17 |
JPMorgan Chase |
JPM |
NYSE |
40% |
$0.1 |
Microsoft |
MSFT |
NASDAQ |
20% |
$0.1 |
Morgan Stanley |
MS |
NYSE |
60% |
$0.1 |
National Semiconductor |
NSM |
NYSE |
20% |
$0.1 |
Newmont Mining |
NEM |
NYSE |
30% |
$0.1 |
Oracle Corp |
ORCL |
NASDAQ |
20% |
$0.1 |
Pfizer |
PFE |
NYSE |
20% |
$0.1 |
Qualcomm |
QCOM |
NASDAQ |
30% |
$0.1 |
Research in Motion |
RIMM |
NASDAQ |
20% |
$0.19 |
Symantic |
SYMC |
NASDAQ |
40% |
$0.1 |
Target |
TGT |
NYSE |
20% |
$0.1 |
Texas Instruments |
TXN |
NYSE |
20% |
$0.1 |
United Technologies |
UTX |
NYSE |
20% |
$0.14 |
Verizon Communications |
VZ |
NYSE |
20% |
$0.1 |
Yahoo |
YHOO |
NASDAQ |
20% |
$0.1 |
Nippon Telegraph and Telephone |
NTT |
NYSE |
15% |
$0.1 |
Nissan Motor |
NSANY |
NASDAQ |
15% |
$0.1 |
NTT DoComo |
DCM |
NYSE |
15% |
$0.1 |
Sony |
SNE |
NYSE |
15% |
$0.1 |
Toyota Motor |
TM |
NYSE |
15% |
$0.2 |
Baidu |
BIDU |
NASDAQ |
15% |
$0.1 |
China Unicom |
CHU |
NYSE |
25% |
$0.1 |
Shanda Interactive Entertainment |
SNDA |
NASDAQ |
10% |
$0.1 |
Cemex S.A.B. de C.V. |
CX |
NYSE |
10% |
$0.1 |
Petroleo Brasileiro |
PBR |
NYSE |
20% |
$0.1 |
United States STF Corp New |
X |
NYSE |
10% |
$0.1 |
Alfa-A |
ALFAA |
Mexican Stock Exchange |
20% |
$0.1 |
America Movil |
AMXL |
Mexican Stock Exchange |
20% |
$0.1 |
Cemex CPO |
CEMEXCPO |
Mexican Stock Exchange |
20% |
$0.1 |
Consorcio-ARA |
ARA |
Mexican Stock Exchange |
50% |
$0.1 |
Empresas |
ICA |
Mexican Stock Exchange |
50% |
$0.1 |
Gmexico-B |
GMEXICOB |
Mexican Stock Exchange |
20% |
$0.1 |
Grupo Fin Banorte |
GFNORTEO |
Mexican Stock Exchange |
60% |
$0.1 |
Grupo Televisa |
TLEVISACPO |
Mexican Stock Exchange |
20% |
$0.1 |
Mexichem |
MEXCHEM |
Mexican Stock Exchange |
20% |
$0.1 |
Urbi Desarroll |
URBI |
Mexican Stock Exchange |
60% |
$0.1 |
Wal-Mart |
WALMEXV |
Mexican Stock Exchange |
20% |
$0.1 |
Telmex |
TELMEXL |
Mexican Stock Exchange |
20% |
$0.1 |
ETFs
ETFs
|
Symbol
|
Exchange
|
Margin
|
Transaction fee per unit
|
Diamonds |
DIA |
AMEX |
20% |
$0.23 |
PowerShares DB Agriculture |
DBA |
AMEX |
10% |
$0.1 |
PowerShares DB Commodity Idx Trking |
DBC |
AMEX |
20% |
$0.1 |
PowerShares QQQ |
QQQQ |
AMEX |
10% |
$0.1 |
PowerShares Water Resources |
PHO |
AMEX |
20% |
$0.1 |
PowerShares Wilder Clean Energy |
PBW |
AMEX |
30% |
$0.1 |
SPDR |
SPY |
AMEX |
20% |
$0.24 |
SPDR Energy |
XLE |
AMEX |
20% |
$0.13 |
SPDR Financial |
XLF |
AMEX |
20% |
$0.1 |
SPDR Industrial |
XLI |
AMEX |
20% |
$0.1 |
SPDR S&P China |
GXC |
AMEX |
30% |
$0.13 |
SPDR S&P Emerging Middle East&Africa |
GAF |
AMEX |
30% |
$0.12 |
SPDR Technology |
XLK |
AMEX |
20% |
$0.1 |
SPDR S&P Metals&Mining |
XME |
AMEX |
50% |
$0.1 |
SPDR HealthCare |
XLV |
AMEX |
20% |
$0.1 |
SPDR Gold Shares |
GLD |
AMEX |
20% |
$0.27 |
SPDR S&P Homebuilders |
XHB |
AMEX |
60% |
$0.1 |
SPDR S&P Oil & Gas Exploration |
XOP |
AMEX |
20% |
$0.1 |
SPDR Materials Select Sector |
XLB |
AMEX |
20% |
$0.1 |
SPDR Consumer Discretionary |
XLY |
AMEX |
20% |
$0.1 |
SPDR Utilities Select Sector |
XLU |
AMEX |
20% |
$0.1 |
BLDRS Emerging Markets 50 ADR Index |
ADRE |
AMEX |
40% |
$0.1 |
HLDRS Biotech |
BBH |
AMEX |
20% |
$0.1 |
HLDRS Semiconductor |
SMH |
AMEX |
20% |
$0.1 |
HLDRS Oil Service |
OIH |
AMEX |
20% |
$0.23 |
DJ Wilshire REIT ETF |
RWR |
AMEX |
20% |
$0.1 |
KBE Bank Index |
KBE |
AMEX |
30% |
$0.1 |
KBW Regional Banking |
KRE |
AMEX |
70% |
$0.1 |
United States Oil |
USO |
AMEX |
30% |
$0.12 |
United States Natural Gas |
UNG |
AMEX |
20% |
$0.1 |
Ultra QQQ ProShares |
QLD |
AMEX |
30% |
$0.1 |
Ultra S&P500 ProShares |
SSO |
AMEX |
30% |
$0.1 |
UltraShort Dow30 ProShares |
DXD |
AMEX |
50% |
$0.19 |
UltraShort Financials ProShares |
SKF |
AMEX |
50% |
$0.49 |
UltraShort FTSE/Xinhua China 25 ProShares |
FXP |
AMEX |
50% |
$0.16 |
UltraShort Russell 2000 ProShares |
TWM |
AMEX |
30% |
$0.22 |
UltraShort S&P500 ProShares |
SDS |
AMEX |
30% |
$0.29 |
UltraShort Real Estate ProShares |
SRS |
AMEX |
20% |
$0.18 |
UltraShort Oil & Gas ProShares |
DIG |
AMEX |
20% |
$0.1 |
UltraShort 20yr Treasury ProShares |
TBT |
AMEX |
20% |
$0.13 |
UltraShort MSCI Emerging Mkts ProShares |
EEV |
AMEX |
20% |
$0.13 |
UltraShort DJ-AIG Crude Oil ProShares |
SCO |
AMEX |
20% |
$0.1 |
UltraShort Basic Materials ProShares |
SMN |
AMEX |
20% |
$0.1 |
Ultra Basic Materials ProShares |
UYM |
AMEX |
20% |
$0.1 |
Vanguard Europe Pacific ETF |
VEA |
AMEX |
30% |
$0.1 |
Vanguard REIT ETF |
VNQ |
AMEX |
30% |
$0.1 |
Vanguard Mid Cap ETF |
VO |
AMEX |
20% |
$0.12 |
Vanguard Value ETF |
VTV |
AMEX |
20% |
$0.11 |
Vanguard FTSE All World ex-US ETF |
VEU |
AMEX |
20% |
$0.1 |
Vanguard Emerging Markets ETF |
VWO |
AMEX |
30% |
$0.13 |
Vanguard European ETF |
VGK |
AMEX |
60% |
$0.1 |
iShares S&P100 Index |
OEF |
AMEX |
20% |
$0.12 |
iShares Nasdaq Biotechnology |
IBB |
AMEX |
20% |
$0.19 |
iShares Dow Jones US Basic Materials |
IYM |
AMEX |
40% |
$0.12 |
iShares Dow Jones US Energy |
IYE |
AMEX |
40% |
$0.1 |
iShares Dow Jones US Financial Sector |
IYF |
AMEX |
40% |
$0.12 |
iShares Dow Jones US Real Estate |
IYR |
AMEX |
50% |
$0.1 |
iShares Lehman TIPS Bond |
TIP |
AMEX |
20% |
$0.29 |
iShares MSCI Germany Index |
EWG |
AMEX |
30% |
$0.1 |
iShares MSCI EMU Index |
EZU |
AMEX |
40% |
$0.1 |
iShares MSCI Malaysai Index |
EWM |
AMEX |
40% |
$0.1 |
iShares MSCI Mexico Index |
EWW |
AMEX |
40% |
$0.1 |
iShares Russell 2000 Growth Index |
IWO |
AMEX |
20% |
$0.13 |
iShares MSCI United Kingdom Index |
EWG |
AMEX |
20% |
$0.1 |
iShares Silver trust |
SLV |
AMEX |
20% |
$0.1 |
iShares S&P500 Growth Index |
IVW |
AMEX |
40% |
$0.13 |
iShares S&P500 Index |
IVV |
AMEX |
20% |
$0.25 |
iShares MSCI Canada Index |
EWC |
AMEX |
20% |
$0.1 |
iShares MSCI Japan Index |
EWJ |
AMEX |
20% |
$0.1 |
iShares MSCI Brazil Index |
EWZ |
AMEX |
20% |
$0.11 |
iShares Barclays 20+yr Treasury Bond |
TLT |
AMEX |
20% |
$0.31 |
iShares FTSE/Xinhua China 25 Index |
FXI |
AMEX |
20% |
$0.1 |
iShares MSCI Tawain Index |
EWT |
AMEX |
20% |
$0.1 |
iShares MSCI South Korea Index |
EWY |
AMEX |
20% |
$0.1 |
iShares MSCI Hong Kong Index |
EWH |
AMEX |
20% |
$0.1 |
iShares MSCI Australia Index |
EWA |
AMEX |
20% |
$0.1 |
iShares MSCI Singapore Index |
EWS |
AMEX |
20% |
$0.1 |
iShares s&P Latin America 40 Index |
ILF |
AMEX |
20% |
$0.1 |
Market Vectors Coal ETF |
KOL |
AMEX |
40% |
$0.1 |
Market Vectors Russia |
RSX |
AMEX |
40% |
$0.1 |
CFD ETF Trading Examples
- With CFD trading you buy a CFD based on a certain amount of the underlying asset. In this case, we will examine how to trade ETF.
- The following worked examples show how you can use CFDs to trade a number of different markets.
- These examples show trades that result in both profits and losses.
- CFD trading example (ETF) - Buying SPDR (SPY).
- You believe that the shares of SPY will rise, so you decide to buy a CFD based on 2000 shares.
- Tradeview Forex quotes you a spread of $84.68/$84.70 for SPDR (SPY).
OPENNING TRADE
|
Price of SPY
|
84.70
|
Number of underlying shares
|
2,000
|
Value of total position (US$)
|
169,400
|
Transaction Fee @ $.24 per share
|
480
|
Margin requirement @ 20% ($)
|
33,880
|
After 2 days the market has risen and you decide to close your position.
CLOSING TRADE (2 days later)
|
Price of SPY
|
86.75
|
Number of underlying shares
|
2,000
|
Value of total position (US$)
|
173,500
|
PROFIT (loss) ON TRADE
|
Closing value ($)
|
173,500
|
Opening value ($)
|
169,400
|
Gain on position ($)
|
4,100
|
Total transaction Fee ($)
|
(480)
|
Overall profit on trade ($)
|
3,620
|
ETF Basics and Facts
Exchange traded funds offer individual investors:
- Advantages of stocks and mutual funds combined
- Lower fees** (ordinary brokerage commissions apply)
- Lower capital gains taxes**
Recently, these exceptional features and benefits have helped exchange traded funds explode in popularity and emerge as one
of the most flexible, multi-purpose investment vehicles available.
Ever since the American Stock Exchange championed and pioneered the concept of a tradable basket of stocks with the creation
of the Standard & Poor's Depositary Receipt (SPDR) in 1993, exchange traded funds have evolved into a completely new
investment category.
Today, the number of ETFs listed and traded at the Amex has grown to more than 180 and continues to grow—not only in
the number of products and their variety—but also in terms of assets and market value.
What are exchange traded funds?
Exchange traded funds (ETFs) are index funds or trusts* that are listed on an exchange and can be traded intraday.
Investors can buy or sell shares in the collective performance of an entire portfolio as a single security. Exchange traded
funds add the flexibility, ease, and liquidity of stock trading to the benefits of traditional index fund investing.
The American Stock Exchange lists ETFs on more than 180 broad stock market, stock industry sector, international stock,
U.S. Treasury, and corporate bond indexes and commodities, providing a vast selection of investment opportunities. ETFs
provide a simple and effective way to invest in markets all over the world. Investors can set long-term investments in
the market performance of the top companies in the top industries within the United States or abroad, or customize asset
allocations using diversified investments in stocks in particular industries or countries or in U.S. bonds or commodities.
The advantages of ETFs:
Tax efficiency**
ETFs, like index funds, offer greater tax benefits because they create fewer capital gains due to low turnover of the
securities that comprise the portfolio. Generally, an ETF only sells securities to reflect changes in its underlying index.
Exchange trading of ETFs further enhances their tax efficiency. Investors who want to liquidate shares in an ETF simply sell
them to other investors through exchange trading.
Because of this particular structure, ETFs are not required to sell securities to meet investor cash redemptions, potentially
generating capital gains tax liability for remaining investors. Keep in mind that the sale of an ETF will generate capital
gains/losses for the investor liquidating shares.
Lower costs**
Expenses can have a masive impact on returns for investors. ETFs usually have a notoriously lower annual expense ratio
than other investment products. ETFs are less likely to experience high management fees because they are index-based,
not "actively" managed.
Since they trade on an exchange, ETFs are insulated from the costs of having to buy and sell securities to accommodate
shareholder purchases and redemptions. An investor selling ETF shares may realize capital gains or losses, as with common
stocks. Purchases or sales of exchange traded funds are subject to brokerage commissions.
Transparency
ETFs are usually designed to match the performance of their underlying index or commodity.
Buying and selling flexibility
Because they are exchange traded, ETFs can be:
- Bought and sold at intraday market prices
- Purchased on margin
- Sold short
- Traded using stop orders and limit orders, which help investors to specify the price points at which they are
willing to trade
All day tracking and trading
ETFs are priced and traded throughout the day, and are not restricted to once-a-day trading at the end of the day.
Due to the pricing of ETFs is continuous during trading hours, investors will always be able to obtain updated share
prices from their broker or financial adviser.
Diversification*
Since each ETF is comprised of a basket of securities, it inherently provides diversification across an entire index.
Also, the expanding possibilities of ETFs available at the American Stock Exchange offer exposure to a diverse variety
of markets, including:
- Broad-based equity indexes (i.e.: as total market, large-cap growth, and small-cap value)
- Broad-based international and country-specific equity indexes (i.e.: Europe, EAFE, and Japan)
- Industry sector-specific equity indexes (i.e.: healthcare, energy, and real estate)
- U.S. bond indexes (i.e.: long-term Treasury bonds and corporate bonds)
- Commodities (i.e.: gold, silver, and oil)
Dividend opportunities
Dividends paid by companies and interest paid on bonds held in an ETF are distributed to ETF holders, less expenses,
on a pro rata basis.
However, not all companies will pay dividends. Based on past performance, few distributions can be expected from
certain ETFs. There may also be opportunities for reinvestment of distributions.
Wide array of investment strategies
Investors can benefit from the convenience and flexibility of ETFs to pursue a vast array of investment strategies.
Core investment
Investors can use ETFs as a core investment for their portfolio. The purchase of shares in a single
ETF can provide broad market exposure for long-term holding that is simple to establish, easy to track, inexpensive,
and tax efficient.road-based equity indexes (i.e.: as total market, large-cap growth, and small-cap value)
Portfolio diversification
ETFs cover virtually every segment of the equity market and several segments of the
U.S. bond market and commodities, providing an easy and convenient way to adjust the investment mix of a core portfolio.
Hedging
Exchange traded funds can be purchased on margin and sold short, which has opened up risk management
strategies for individual investors that were available just for large institutions. For example, ETFs can be sold short
to hedge a core stock portfolio or interest rate fluctuations. This allows investors to keep their portfolio intact
while protecting them from market losses.
In a declining stock market or rising interest rate environment, profits from a short position can offset some of the losses in a portfolio. (Investors are required to make arrangements to borrow securities before selling short.) Listed options, available on some ETFs, also offer chances for additional hedging or to increase income. Investors should contact their broker regarding initial and maintenance margin requirements.
Cash management
ETFs have often been used to "equitize" cash, providing a way for investors to
put cash to work in the market or maintain allocation targets while determining where to invest for the longer term.
Rebalancing
Investors can adjust ETF positions whenever they need to throughout the trading day, without
redemption fees or short-term restrictions. Usual brokerage commissions will apply.
Tax loss strategy
An investor can sell a security that is underperforming and claim a tax loss but retain
exposure to its sector by investing in an ETF. It is recommended to consult a tax advisor about a tax loss strategy.
Risks and other considerations
ETF shareholders are subject to risks similar to those of holders of other diversified portfolios. A basic consideration
is that the general level of securities or commodities may decline, affecting the value of an exchange traded fund because
ETFs represent interest in securities or commodities.
When interest rates rise, bond prices will probably decline, affecting adversely the value of fixed income ETFs. Moreover,
the overall depth and liquidity of the secondary market may also fluctuate.
An exchange traded sector fund may also be adversely affected by the performance of that specific sector or group of
industries on which it is based.
International investments may involve risk of capital loss from unfavorable fluctuations in currency values, differences in
generally accepted accounting principles, or economic, political instability in other nations.
Although exchange traded funds are designed to provide investment results that generally correspond to the price and yield
performance of their respective underlying indexes or commodities, the trusts may not be able to exactly replicate that performance
because of trust expenses and other factors.
* iShares COMEX Gold Trust, iShares Silver Trust, and United States Oil Fund are not index funds or diversified
baskets of securities. ProShares seek performance that corresponds to a multiple, inverse, or inverse multiple of an index.
** ProShares Trust portfolios will experience high levels of portfolio turnover, which will increase transaction
expenses and may be more likely to generate taxable short-term capital gains than other ETFs.
CFD Equities Trading Examples
- As with traditional share dealing, CFD prices are quoted as a Bid (the price you can sell at) and an Offer (the price you
can buy at). With CFD trading you buy a CFD based on a certain amount of the underlying asset.
- The following worked examples show how you can use CFDs to trade a number of different markets.
- These examples show trades that result in both profits and losses.
- CFD trading example (Equities) - Buying Yahoo (YHOO)
- You believe that the shares of Yahoo will rise, so you decide to buy a CFD based on 3000 shares.
- Tradeview Forex quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).
OPENNING TRADE
|
Price of YHOO
|
13.49
|
Number of underlying shares
|
3,000
|
Value of total position (US$)
|
40,470
|
Transaction Fee @ $.10 per share
|
300
|
Margin requirement @ 20% ($)
|
8,094
|
After 2 days the market has risen and you decide to close your position.
CLOSING TRADE (2 days later)
|
Price of YHOO
|
14.01
|
Number of underlying shares
|
3,000
|
Value of total position (US$)
|
42,030
|
PROFIT (loss) ON TRADE
|
Closing value ($)
|
42,030
|
Opening value ($)
|
40,470
|
Gain on position ($)
|
1,560
|
Total transaction Fee ($)
|
(300)
|
Overall profit on trade ($)
|
1,260
|
CFD Futures Trading Example
- With CFD trading you buy a CFD based on a certain amount of the underlying asset. In this case, we will examine how to trade futures.
- The following worked examples show how you can use CFDs to trade a number of different markets.
- These examples show trades that result in both profits and losses.
- CFD trading example (Index) - Selling the US TECH 100
- You believe that the US TECH 100 will fall so you decide to sell a CFD based on 100 underlying futures contracts for that market.
- Tradeview Forex quotes you a spread of $13.47/$13.49 for Yahoo (YHOO).
OPENNING TRADE
|
Price of US TECH 100
|
1280
|
Number of underlying shares
|
100
|
Value of total position (US$)
|
128,000
|
Transaction Fee $.75 per contract
|
75
|
Margin requirement @ 5% ($)
|
6400
|
After 2 days the market has risen and you decide to close your position.
CLOSING TRADE (2 days later)
|
Price of US TECH 100
|
1250
|
Number of underlying contracts
|
100
|
Value of total position (US$) ($)
|
125,000
|
PROFIT (loss) ON TRADE
|
Opening value ($)
|
128,000
|
Closing value ($)
|
125,000
|
Gain on position ($)
|
3,000
|
Total transaction Fee ($)
|
(75)
|
Overall profit on trade ($)
|
2,925
|
Order Types
Orders are trading tools that help the trader to fully or partially open, close, or amend positions.
They are useful for managing risk.
At Tradeview Forex, we have a range of orders to help you get into, and out of, positions at the price
you want to.
Limit Orders
A Limit Order is an instruction to buy or sell a market when it reaches a price that surpasses the prevailing, at the time
of placing the Order. It can be used to open a new position, where you anticipate a more favorable market price (either
buy or sell). It can also be used to close an existing Open Position, when a market reaches a certain level.
For instance, if our quote for UK 100 Rolling Spread is 5873.8 / 5875.8
To open a new position:
If you thought the market was going to reach 5700.5 and then reverse and go higher, and you had no Open
Position in the market, you would leave a new Limit Buy Order at 5700.5. If the price reaches 5700.5 or lower,
then the Order is activated and you would have a new long (buy) position in the market.
To close a position:
If you were long (had a buy position) in the market and wished to take your profit when the market reached
5950.8, you would leave a Limit Sell Order at 5950.8, which would activate when the Sell price hit 5950.8 or
higher. If activated, this Order would close your position and realize any profit (or loss if you opened your
position above 5950.8.).
Stop Orders
A Stop Order is an instruction to buy or sell a market at a price which is worse than that prevailing, at the time
of placing the Order. It can be used to open a position if there is a chance that a market could move even higher once
it moves above a particular level (when buying), or even lower if it moves lower than a particular level (when selling).
Stop orders can also be used to close a position (a tool for managing risk).
E.g. If our quote for Australian 200 CFD is 5100 / 5106
To open a new position:
If you felt that the market traded up to 5150 and it would continue even higher, then you would leave a new Stop
Order to Buy at 5150. If the Buy price hit 5150 or higher, the Order would execute and open a long position.
Stop Loss Orders
A Stop loss order is an instruction to buy or sell a market at a price which is lower than the opening price of an
open position (or lower than the prevailing when applying the stop loss to an existing open position). It can be used
to help protect against losses.
E.g. If our quote for Australian 200 CFD is 5100 / 5106
To close a position using a stop loss:
If you were long in the market and wished your position to be closed if the market went beneath 5000, then you would
leave a Stop Loss Order linked to that position to Sell at 5000. If the price fell to 5000 (or lower) then the Stop
would be executed and close that position.
Trading Hours
Name
|
Market
|
Trading Hours
|
US EQUITIES
|
XNYS
|
14:30 - 21:00 (GMT)
|
UK EQUITIES
|
XLON
|
08:00 - 16:35 (GMT)
|
EU EQUITIES
|
XETR
|
08:00 - 16:35 (GMT)
|
RUSSIAN EQUITIES
|
XNYS
|
14:30 - 21:00 (GMT)
|
LATIN AMERICAN EQUITIES
|
XNYS
|
14:30 - 21:00 (GMT)
|
BRAZILIAN EQUITIES
|
XNYS
|
14:30 - 21:00 (GMT)
|
CHINESE EQUITIES
|
XNAS
|
14:30 - 21:00 (GMT)
|
JAPANESE EQUITIES
|
XNYS
|
14:30 - 21:00 (GMT)
|
AUSTRALIAN EQUITIES
|
XASX
|
23:00 - 05:12
|
US ETF's
|
XASE
|
14:30 - 21:00 (GMT)
|
EU ETF's
|
XPAR
|
08:00 - 16:35 (GMT)
|
FUTURES
|
CBOT, CME, NYMEX
|
24h
|
Overnight Positions
If you carry a Share CFD position overnight, it will cause a financing cost or benefit. Finance costs/benefits will
be on 100% of the value of your exposure. If you are long, you may have to pay interest to Tradeview Forex; if you
are short, you may receive interest.
Financing for non-currency positions
There is a daily financing charge or credit related to any CFD position which is held overnight. This is calculated
using the following formula:
F = V x i / b, where:
- F = daily financing charge
- V = value of equivalent holding of the underlying financial instrument
- i = applicable financing rate
- b = 365 days
Your account will be debited a financing amount for each long CFD position that you hold, and will be credited a
financing amount for each short CFD position that you hold.
The financing rates used are +/- 2%
If a position is held on a Friday or prior to a non-business day in the relevant market, financing will be applied
on the number of days until the next business day.
For instance, for a position held at the close of business on a Friday, financing will be applied for 3 days if
the next business day is a Monday.
Financing for currency positions
When it comes to currency positions, the daily financing is calculated by using the one day interest rate differentials
for the two currencies concerned. You receive the interest on the currency you have bought and pay interest on the
currency you have sold, although the financing posting/adjustment will be made in one currency.
For a position held on a Friday or prior to a non-business day in the relevant market, financing will be applied
on the number of days until the next business day.
For a position held at the close of business on a Friday, financing will be applied for 3 days, assuming the next
business day is a Monday.
Notice Regarding CFDs on Futures:
When trading CFD's on futures, your position will automatically be closed on the basis of the applicable time and date
of the contract expiration listed. Positions will not be rolled over or extended beyond this deadline.
By entering into any CFD transaction with Tradeview Forex, you agree that Tradeview Forex is not responsible for
any losses incurred as a result of the automatic closure of these positions at the time and on the date disclosed
to you on each CFD.