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New financial derivatives on Romanian market - contracts for difference

Authors :
Mircea CIOLPAN
Source :
Finanţe: Provocările viitorului, Vol 2, Iss 10, Pp 190-195 (2009)
Publication Year :
2009

Abstract

Investors’ motivation on derivatives market is a profit gain under the law of “buy cheap and sell expensive” no matter the order in which the two operations succeed. Contracts for difference are a good option for short-term investment. The possibility to trade very cheap, relatively simple mechanism of trading and permanent marking to market make the CFD perfect tools for short-term speculators. The investments in CFD aren’t suitable for any investor. Depending on the risks that the investor wants to assume and the knowledge he acquired so far, the decision to invest in CFD can be taken. The permanent increase of the derivatives number has the role to enable a large number of participants to find the right product for everybody.

Details

Volume :
1
Issue :
10
Database :
OpenAIRE
Journal :
Finance - Challenges of the Future
Accession number :
edsair.dedup.wf.001..7e046929ab53d5dcbe5e33de1ec89afa