FCA proposes stricter rules for retail CFD Providers

FCA Leverage Limit For Retail CFD Providers Product Intervention At Its Sharpest

Contracts for Difference (CFD) have gained popularity as a new and less capital-intensive way to trade stocks, indices, currency pairs and commodities in today’s financial markets.

Today, the retail day trader can trade the Dow Jones Industrial Average in many different instruments ranging from CFD’s to ETF’s, options and of course futures contracts. Among these different ways one can invest or speculate on the Dow Jones, the Dow futures are the most popular and for a number of reasons, some of which are listed below.

Access to domestic markets and international markets: Some CFD brokers only offer domestic assets for trading. Others will give you a mixture of domestic and international assets. There are merits to each route. If you are based in the same country as the broker, you will be better served trading domestic assets. I know more about company stocks listed in my country than those traded in another country. For me, domestic assets may be the way to go. But if another trader is working elsewhere as an expatriate, he may like to get a mix of domestic and international assets so as to get a blend of both worlds.

Prior to Seeking Alpha, he served as the Senior Vice President and General Manager of Everyday Health’s Local Division, which connects consumers to health care professionals. Leading a large team, for the fastest growing division of the company, he built out specialty content sites, directories and marketing services for physicians, payers and hospitals.

The Dow Index is a price-weighted average index meaning that stocks with a higher share price have a stronger influence that stocks with relatively lower share price. The Dow Jones is referred by many different names including the Dow 30, Wall Street 30, the industrial average and so on.
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