If you’re looking for a multi-asset broker with tight spreads and great execution then you’ll love Global Prime. Our stock CFDs give you the ability to trade the world’s most popular companies such as Amazon, Apple or Facebook to name a few. We’re starting with the biggest names from the US markets and will expand this over 2021.
Our stocks CFDs can be accessed from our TraderEvolution and TradingView platforms. TradingView will allow you to track all major markets and stocks from across the world.
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When you trade a Share CFD, you’re buying or selling a CFD over a company such as Amazon (AMZN:NAS) listed on an exchange such as the NASDAQ. Shares in publicly listed companies like AMZN:NAS are typically traded without leverage and through a stock exchange.
When you do this you are the owner of the shares, entitled to voting right, etc.. Share CFDs on the other hand are traded using leverage and are done so over-the-counter (OTC). This means you don’t own the stock, the CFD is simply a contract between you and the broker to earn a profit or loss from price movements in the underlying Share. Share CFDs are really for price speculation rather than long term investment and portfolio building.
When you trade shares, you’re taking a view on the future value of a company. In other words, you trade long (buy) if you think the value of the company will rise, and you trade short (sell) if you think the value of the company will fall.
‘Traders’ will generally use technical analysis to determine if shares will go up or down over a short term time horizon. ‘Investors’ will use fundamental analysis to determine if a company will rise or fall, over the medium to long term, based on some weird and wonderful valuation model using the company’s financial data and other economic indicators.
The gross profit on your rate is calculated as follows:
1,000 shares x 2.86 = $2,860 USD
2,860 x 20% = $572 USD
1,000 x 3.20 = $3,200 USD
$3,200 - $2,860 = $340 USD
XYZ Limited shares are quoted at 2.85/2.86 on the ASX, and you believe that their price will rise. You decide to ‘buy’ 1,000 Equity CFD contracts at $2.86, the offer price.
Three days later, the price of XYZ Limited shares rises up to 3.20/3.21.
Since you are in profit, you would like to close your position by selling 1,000 shares at $3.20, the bid price.
View our trading conditions across our full range of products to see how trading with Global Prime is your next best move.
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