TAKE A VIEW IN ANY MARKETS TO ACHIEVE ABSOLUTE RETURNS

Traditional investing has involved strategies of buying low and selling high, buying on expectations and selling on the news; and perhaps buying undervalued stocks by comparing the worth of companies within the same sector. But what if this same portfolio was allowed a more developed yet simple strategy? By creating a small diversification that has the dynamic ability to react to market conditions, advantages can be made from rising and falling markets: sell high & buy it back low, or, sell on expectations & buy it back on the news (i.e. going “short”). By establishing this flexibility within the portfolio, any opportunity can be found regardless of market condition.

The instrument most commonly used to allow trading for any scenario is ‘Contracts For Differences’ (CFDs). The official definition is that a Contract for Difference (CFD) is an agreement between two parties to exchange the difference between the opening price and the closing price of the contract, at the close of the contract, multiplied by the number of instruments (e.g. shares) specified within the contract.

CFDs are undoubtedly one of the most exciting new products to be made available to the individual investor in recent years, which now accounts for almost one third of all trades. With these innovative contracts you can reap all the economic benefits of share dealing, without actually physically owning the shares.

Warning: Trading Contracts for Differences (CFDs), Futures and spread betting carries a high level of risk to your capital, and is not suitable for all investors. Only speculate with money you can afford to lose. Trading or placing any bets can result in consumers incurring liabilities in excess of their initial stake. Please ensure you fully understand the risks, and seek independent advice if necessary. 

ADVANTAGES OF CFDS OVER CONVENTIONAL FORMS OF TRADING

Trade long or short:	Ability to implement shorting strategies and therefore have the ability to profit from falling prices, as well as traditional gains from long positions.
No stamp duty:	Investors in UK equity CFDs are not required to pay stamp duty. Note: Tax laws canand may change in the future.
Utilise leverage:	A deposit of 10% of the contract value may be sufficient, allowing for greater leveraging of portfolios. CFD Trading ties up less of your capital and may be favourable for short-term positions.
No custody fees:	With the absence of physical shares, there is no requirement to pay for their safe keeping.
Interactive online:	Quantaur trading platforms allow you to buy & sell at the same time, and run multiple positions.
Hedging:	CFDs can be used to hedge against short-term corrective moves, but do not incur the costs and taxes associated with the premature sale of an equity position (Tax laws canand may change in the future)
Equity release:	An existing equity portfolio can be converted to a CFD in order to release cash without losing economic exposure to the underlying securities.
Open-end settlement:	A CFD may have no settlement or expiration date