Learn To Trade Cfds

[chiangmaikelly]

My wife, a Thai national (and we live in Thailand) would like to learn how to trade and to trade CFDs. Can anyone recommend an on line course and broker? Her English excellent so no problem there. As an American I have no experience with CFDs because they are not legal for Americans to trade. A search on google came up with quite a large number of alternatives; has anyone actually read one of the courses and trade with a specific broker. I notice to trade with quite a few of the listed top ten one must be a UK resident (she is not). I also notice most offer a practice trading account. Has anyone used them? When going live do you get the same results; stops and timing execution and so on? Thank you for any information.

Edited June 5, 2013 by chiangmaikelly

[yoshiwara]

http://www.contracts-for-difference.com/what-is-a-cfd.html

Practice accounts always worth trying out, but if the requirement is UK passport then forget it.

Doesn't the SET offer call options etc?

Edited June 5, 2013 by yoshiwara

[fletchsmile]

Hargreaves Lansdown run a service I'd recommend looking at. They probably wouldn't accept your Thai wife as a client as a non-UK national, but they have some good info on their website worth looking at for general understanding. Attached also is one of their guides.

http://www.hlmarkets.co.uk/

I'd suggest she start reading up and also read the guide. If she doesn't want to put in the effort to read it or can't follow it, then take that as a sign it's not for her.

Does she invest in shares or anything already? It's always good to understand the underlyings of any CFDs or derivatives, and besides they may be a better place to start.

As Yoshiwara suggests, TFEX may be a better place for her to start as a Thai national wanting to trade derivative based products. So worth looking into the SET's website and TFEX website, as there are a variety of products and guides and info

http://marketdata.set.or.th/tfx/dailyMarketReport.do?locale=en_US

http://www.tfex.co.th/en/products/set50options-mktdata.html

The pace of TFEX is probably more suitable to a beginner. If you're trading on highly liquid markets, the past is face, and any input mistakes, mispricings or errors in judgement are quickly picked up by others and exploited, particularly by those running algorithmic trading models. TFEX is less liquid than say US and UK markets, but means the pace is slower.

Quite easy to set up TFEX accounts for Thai nationals. I use KGI as a broker. They also have product info and research. All you need after all the paperwork is a simple internet connection (and of course back up connection for when it cuts out, eg aircard)

http://www.kgieworld.co.th/en/index.asp

So there's a few ideas to get started. My key advice: read, read and read some more to make sure she understands what she is doing before putting down any money. Then maybe start with a demo account. Then start with a very small amount of money. If she is give a generous credit "line" by a broker, make sure she doesn't get anywhere near to the limit, as margin calls could wipe here out. If say THB 100k is her line limit, try and keep margins under say 20k, so if markets move she still has room. Last thing you want is hitting your limit and being closed out and losing all your capital by over trading early on

Cheers

Fletch

Edited June 5, 2013 by fletchsmile

[cocopops]

I think Interactive Brokers via Hong Kong will allow it.

http://www.interactivebrokers.com.hk/en/index.php?f=products&p=cfd

In my opinion it is an odd thing to want to do though....

[chiangmaikelly]

Thanks for the information. I don't know much about CFDs so I was no help to her. Does anyone who posts on here trade CFDs?

[yoshiwara]

Unless your wife is a hard-line chartist (and somehow I suspect she is not) then trading in derivatives is not just about using the option tools but also understanding the stock and the environment one is trading in. Progressing from trading in a particular stock to trading in options makes sense, but starting with options from a position of zero? Not a good idea. Why not encourage her to trade in the currency pairs market? Many have free trial software to see if she can do the business.

[PCA]

not to mention that the wife doesn't even know what a CFD is just as clear as that she actually doesn't want to trade it.

Anyway in case I am only 10% wrong here then CFD should be the last thing you want to touch CMK - for the better.

[Gsxrnz]

Learning how to use the software is one thing, knowing what the hell to do with the software is another thing. She wants to trade derivatives but has no idea of put/call options, hedging, futures, bid/offer, leverage, stop losses, margin calls etc I assume? Maybe just read somewhere that there's a fortune to be made in the derivatives market and wants to get on the train. Does she understand or stand a chance of understanding NPV calculations and the like?

If you're hell bent on it, start with something simple and understandable like trading currency - the way the THB is dynamically moving against the different cross rates at the moment she stands a chance of not losing her shirt in the first 30 minutes seconds of trading.

I'd like to know what her trading strategy is going to be, regardless of what market she goes into. I work on the "take a punt with no real logic and hope for the best" strategy. It doesn't work for me.....so good luck with that.

On the other hand, buy her some chickens (of the female variety) and get them to lay eggs......real product, real market, tangible, and understandable.

[edwardandtubs]

I'll give her two weeks to completely blow her account. You must be completely out of your mind to let a Thai woman gamble money on the markets. And do you really think someone who makes a living trading is going to give away his edge by teaching other people how to do it? You're a fish who's about to get eaten by sharks.

[chiangmaikelly]

I'll give her two weeks to completely blow her account. You must be completely out of your mind to let a Thai woman gamble money on the markets. And do you really think someone who makes a living trading is going to give away his edge by teaching other people how to do it? You're a fish who's about to get eaten by sharks.

Appreciate the advice. Have you ever traded CFDs?

[chiangmaikelly]

Learning how to use the software is one thing, knowing what the hell to do with the software is another thing. She wants to trade derivatives but has no idea of put/call options, hedging, futures, bid/offer, leverage, stop losses, margin calls etc I assume? Maybe just read somewhere that there's a fortune to be made in the derivatives market and wants to get on the train. Does she understand or stand a chance of understanding NPV calculations and the like?

If you're hell bent on it, start with something simple and understandable like trading currency - the way the THB is dynamically moving against the different cross rates at the moment she stands a chance of not losing her shirt in the first 30 minutes seconds of trading.

I'd like to know what her trading strategy is going to be, regardless of what market she goes into. I work on the "take a punt with no real logic and hope for the best" strategy. It doesn't work for me.....so good luck with that.

On the other hand, buy her some chickens (of the female variety) and get them to lay eggs......real product, real market, tangible, and understandable.

My wife is the comptroller of a major multinatinal company in Thailand. I was looking for some information on learning how to trade CFDs. Have you ever traded CFDs?

Edited June 6, 2013 by chiangmaikelly

[chiangmaikelly]

not to mention that the wife doesn't even know what a CFD is just as clear as that she actually doesn't want to trade it.

Anyway in case I am only 10% wrong here then CFD should be the last thing you want to touch CMK - for the better.

She knows what a CFD is. Have you ever traded CFDs?

[PCA]

not to mention that the wife doesn't even know what a CFD is just as clear as that she actually doesn't want to trade it.

Anyway in case I am only 10% wrong here then CFD should be the last thing you want to touch CMK - for the better.

She knows what a CFD is. Have you ever traded CFDs?

yes more than 10 years ago and only sim. What's a comptroller?

[chiangmaikelly]

not to mention that the wife doesn't even know what a CFD is just as clear as that she actually doesn't want to trade it.

Anyway in case I am only 10% wrong here then CFD should be the last thing you want to touch CMK - for the better.

She knows what a CFD is. Have you ever traded CFDs?

yes more than 10 years ago and only sim. What's a comptroller?

Comptroller or controller. A government official or an officer of a business firm; the chief accountant, who superintends financial accounts and transactions; comptroller.

I guess I should have said recently traded CFDs. Before 2007 they were not exchange traded.

Edited June 6, 2013 by chiangmaikelly

[fletchsmile]

Thanks for the information. I don't know much about CFDs so I was no help to her. Does anyone who posts on here trade CFDs?

CFDs are financial derivative transactions.

Derivative transactions can be traded on a recognised exchanged like TFEX in Thailand, with standardised contract sizes. CFDs are traded "OTC" (over the counter) between two parties, usually via a broker, and there are no standardised contract terms with each provider setting their own conditions. As such the the CFD market is less transparent - you have to be careful if your broker is also the other side of the contract and pricing issues around whether she has direct market access.

I prefer to trade derivatives on recognised exchanges, which in my view are safer and much more transparent OTC - particularly for retail clients. The products are similar in nature, i.e financial derivatives, but mainly the execution method differs. For example you could trade S&P 500 options on a recognised exchange with standard contract sizes or S&P 500 options with your CFD broker,

Your wife should also understand this difference and the additional risks of CFD mechanisms/ OTC versus recognised exchange before trading.

The most fundamental question you need to clarify to get more specific answers from people is: Does she have an idea of what CFDs she wants to trade: eg currency, equity, commodities, etc etc ?

Otherwise it's like saying my wife wants to make money from trading, any information?

Cheers

Fletch

[chiangmaikelly]

Thanks for the information. I don't know much about CFDs so I was no help to her. Does anyone who posts on here trade CFDs?

CFDs are financial derivative transactions.

Derivative transactions can be traded on a recognised exchanged like TFEX in Thailand, with standardised contract sizes. CFDs are traded "OTC" (over the counter) between two parties, usually via a broker, and there are no standardised contract terms with each provider setting their own conditions. As such the the CFD market is less transparent - you have to be careful if your broker is also the other side of the contract and pricing issues around whether she has direct market access.

I prefer to trade derivatives on recognised exchanges, which in my view are safer and much more transparent OTC - particularly for retail clients. The products are similar in nature, i.e financial derivatives, but mainly the execution method differs. For example you could trade S&P 500 options on a recognised exchange with standard contract sizes or S&P 500 options with your CFD broker,

Your wife should also understand this difference and the additional risks of CFD mechanisms/ OTC versus recognised exchange before trading.

The most fundamental question you need to clarify to get more specific answers from people is: Does she have an idea of what CFDs she wants to trade: eg currency, equity, commodities, etc etc ?

Otherwise it's like saying my wife wants to make money from trading, any information?

Cheers

Fletch

I believe CFDs are traded on the ASX but I really didn't want to get into a discussion of why she wants to trade them. She has her reasons. The OP was about an online course and a broker. We first asked our Thai banker/broker but he does not know anything about them.

[yoshiwara]

Thanks for the information. I don't know much about CFDs so I was no help to her. Does anyone who posts on here trade CFDs?

CFDs are financial derivative transactions.

Derivative transactions can be traded on a recognised exchanged like TFEX in Thailand, with standardised contract sizes. CFDs are traded "OTC" (over the counter) between two parties, usually via a broker, and there are no standardised contract terms with each provider setting their own conditions. As such the the CFD market is less transparent - you have to be careful if your broker is also the other side of the contract and pricing issues around whether she has direct market access.

I prefer to trade derivatives on recognised exchanges, which in my view are safer and much more transparent OTC - particularly for retail clients. The products are similar in nature, i.e financial derivatives, but mainly the execution method differs. For example you could trade S&P 500 options on a recognised exchange with standard contract sizes or S&P 500 options with your CFD broker,

Your wife should also understand this difference and the additional risks of CFD mechanisms/ OTC versus recognised exchange before trading.

The most fundamental question you need to clarify to get more specific answers from people is: Does she have an idea of what CFDs she wants to trade: eg currency, equity, commodities, etc etc ?

Otherwise it's like saying my wife wants to make money from trading, any information?

Cheers

Fletch

I believe CFDs are traded on the ASX but I really didn't want to get into a discussion of why she wants to trade them. She has her reasons. The OP was about an online course and a broker. We first asked our Thai banker/broker but he does not know anything about them.

If Kelly Evans on CNBC said she loved me and wanted to trade CFDs with my life savings I would let her. Edited June 6, 2013 by yoshiwara

[Gsxrnz]

Learning how to use the software is one thing, knowing what the hell to do with the software is another thing. She wants to trade derivatives but has no idea of put/call options, hedging, futures, bid/offer, leverage, stop losses, margin calls etc I assume? Maybe just read somewhere that there's a fortune to be made in the derivatives market and wants to get on the train. Does she understand or stand a chance of understanding NPV calculations and the like?

If you're hell bent on it, start with something simple and understandable like trading currency - the way the THB is dynamically moving against the different cross rates at the moment she stands a chance of not losing her shirt in the first 30 minutes seconds of trading.

I'd like to know what her trading strategy is going to be, regardless of what market she goes into. I work on the "take a punt with no real logic and hope for the best" strategy. It doesn't work for me.....so good luck with that.

On the other hand, buy her some chickens (of the female variety) and get them to lay eggs......real product, real market, tangible, and understandable.

My wife is the comptroller of a major multinatinal company in Thailand. I was looking for some information on learning how to trade CFDs. Have you ever traded CFDs?

Yes I have, and also been involved in money markets, bond trading, futures, IR hedges/swaps, oil hedges and currency markets privately as well as for companies I'm involved with. We had specific treasury requirements to cover positions related to actual product and operating overheads (fuel, currency, interest rates etc.) and were managing hedged positions to smooth cash flow, margins and profits in the real world.

OK so your position is now a little clearer in that your wife obviously has some financial knowledge and is no slug. If she understands basic accounting and cashflows to a balance sheet stage and is able to interpret basic banking ratios then she has a head start on trading.

I suggest she seeks knowledge from the internet and gains some knowledge about the complexities of the instruments she may eventually be trading in, and the basic knowledge behind why the derivatives exist, their "real world" purpose, and why/how the prices move. I'm sure there is a host of info from companies that sell the trading services but no doubt will be tailored towards their specific software and specific market. She needs to understand the basics of the instruments, that's why I say just search the web, probably wiki for clear explanations and formulae.

Without being mentored as an employee in a trading establishment, or taking an advanced degree at a recognised university that gets into the nitty-gritty, then the only way she can begin to understand them is through gaining self knowledge. If she has a real hunger to understand the complexities then she will master them.

She then needs to determine a broad trading strategy - is she going to be a day trader hoping to pick/fluke the peaks and troughs intra day, or is she going to hold commodities/currencies/options or whatever for periods, and at what stop/loss figure/ratio is she going to close out the trade. Or does she need to be able to interpret financial or economic data at base level, company level, industry level, geographic level, climate level, commodity level, global level so she can make decisions based on her own expectations of outcomes?

Or, as someone else suggested, will she become a chartist - does she understand the basics behind all the different chartist methodologies? - this is something else she needs to understand because in theory a chartist can be "out thunk", if you know how they think and can take advantage of their methods to out-trade them. And they can out think you as well.

After gaining some knowledge that I've outlined, sign up as a play trader - totally free and fully functional in most cases. I'd recommend that she start with currencies as I mentioned in my first post because these are the most tangible markets. She will be able to learn the methodology and functionality on a relatively simple platform. If she gets this software (regardless of the CFD you choose to work with), before she understands trading concepts then she will be totally lost with the language and jargon and may be put off by the whole idea. eg - if she doesn't understand the concept of stop/losses and selling short on currencies, the trading platform itself will just scare her off the whole idea because she won't understand the functionality of the software.

Hope I've helped with a few ideas, and good luck.

[edwardandtubs]

.

Edited June 6, 2013 by edwardandtubs

[Gsxrnz]

I forgot to add the link to the currency trader that I've used. Metatrader is the software. I'm not saying it's the best but when I evaluated a few different trading platforms, this was the one that I picked because of its ease of functionality and options.

By the way, somebody else mentioned about the importance of a solid internet connection and an alternate backup - they were right, there's nothing worse than waiting for a few pips movement in your direction to make a margin or decide to adjust your stop/loss or stop/profit and you lose connectivity. Log back in and see the margin you could have made if you had your eyes on the screen, but too late, it went through your trigger and back again resulting in a lost opportunity or worse, an actual loss.

http://www.acfx.com/