equities - level 4 - technical indicators

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Technical IndicatorsTechnical Indicators

Participating in the stock and CFD markets gives you instant access to unparalleled global growth

Protecting your money is more important than earning more money

You wouldn’t cut down your trees to use as firewood during the winter

Learn to protect your investing capital by hedging with CFDs

Sell a CFD to hedge a long stock positionBuy a CFD to hedge a short stock position

10 $

100 $

Hedge stock positions directly with CFDs

Hedging a stock position with a CFD1 Buy 100 shares of McDonalds at $50

2 Sell 100 CFDs on McDonalds stock

$1 loss on your stock position

$1 gain on your CFD position

Positions offset each other3 Buy back CFD when stock starts to rise again

Pair trading1 Buy one CFD on a strong stock in the industry

2 Sell another CFD on a weak stock in the same industry

Offset the losses in one position with gains in the

other

Hedging limits your gains but provides protection in unruly markets

Achieve your financial goals by putting your money

to work for you in the stock and CFD markets