Contracts for Difference

Using CFDs for Hedging Purposes If a stock market investor owns stock but fears a price fall in the short term, he can use a contract for differences to cover the risk.  To do this the investor will open a short position on a contract for differences on the same stock.  The effect of this CFD trade will be to offset any losses that might be incurred on the ...

A symetrical triangle is a resting phase for a stock (or commodity), trend lines can be drawn across the lows and highs of the resting phase, this should show the price converging down to a point (like a pennant flag). A breakout should occur somewhere between 50-75% into the triangle pattern. An early or late breakout is more prone to failure, and therefore a less reliable ...