With CFDs you can trade 24 hours to 24 hours on stock market indices. Note that not all CFD brokers are able to offer this. In Belgium, WH SelfInvest only 24 hours of trading on certain stock market indices.
Below are the French CAC40 index on a 30 minute chart. Click on graph to enlarge. You can see that the course after the closing of Euronext Paris at 17h30 politely and then continues to run
seamlessly to the opening of the Paris Bourse at 09h30.
What is the advantage of 24 hours trading? Which indexes can act and how one obtains 24h 24h 24h on prices?
What is the advantage of 24 hours trading?
Suppose you have a classic Turbo or tracker on the CAC40 bought in 3100. The fair closes at 17h30 to 3,200. You decide to hold your position.
Disappointing results propel the U.S. stock market sharply lower, however, about 20 evening. You can not possibly sell your tracker or Turbo as the European stock markets closed.
As a result of the decline in European stock markets open European stock down 5%. The CAC40 opens in 3040. You are all lost profits and faces a loss.
Had the position taken by a CFD on the CAC40, for example, you would have to place your stop at 3,150 points. If the U.S. stock markets plunging, then the price of the CFD on the CAC40 also valleys and 3,150 would your position be broken ends. You would still be a part of the profit can secure!
Another example: You are acting on the DAX, the German stock market index. The German stock market closes also at 17h30. The Fed announces a rate cut at 22:30 in the evening. You want to take a position on a tracker, a future or a Turbo. Impossible, since these exchanges are closed. You need to await the opening of the next day.
The CFD on DAX note however 24h on 24h. Here you can perfect a position (and protect) at 22.30, and benefit from the increase.
Which indices can now 24h a 24h trading?
First, important to know: only WH SelfInvest offers 24hr trading CFD's. Client Station, the CFD vehicle Keytrade Bank does not trade at 24h.
By WH SelfInvest can you act 24h following indexes:
DAX (Germany)
AEX (Netherlands)
FTSE100 (UK)
NASDAQ100 (U.S.)
S & P500 (U.S.)
NASDAQ100 (U.S.)
Russell2000 (U.S.)
DowJones30 5US)
Also interesting to note, following on futures can act 22h on 24h:
Gold
Silver
WTI Crude Oil
Brent Crude Oil
Palladium
Platinum
High Grade Copper
How to obtain a course after the market closes?
The fair closes at 17:30, in Europe, at 22h in the United States and has managed 24 hours in 24 hours (except weekends) a market price, to which can sell or buy? What "makes" this one course.
First, the price of a stock index after the close of the underlying stock is a synthetic track. This rate is so "made" and this course can act.
How does this work?
A number of indices such as the AEX, the S & P500 and the CAC40 are well correlated with the S & P500. In other words, if the S & P500 rises, these indices also increased.
One can calculate exactly how much the DAX index should increase if the S & P 500 rises 1%. These mathematical calculations are complex.
The futures on the S & P500 index on record 24h 24h. A futures reflects the expected value of a stock market index. From this calculate the futures price of fictitious e AEX, the S & P500 and the CAC40.
The calculation and hedging technique is complex but allows an investor to 24h 24h to act and can secure positions overnight.
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Forex is simple follow the trend and you will rich.
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