Rock Capital offers a range of services, one of them being CFD's.
Contracts for Difference (CFDs) are contracts between two parties to settle at the close of the contract the difference between the opening price and closing price of a share specified in the contract. In other words, CFD trading is opened at a specific prevailing market price and closed at the reigning market price and the client is entitled to the difference. A CFD is a contract of a standard quantity of a specific underlying asset, usually a listed share. Normally this means that one CFD contract is equal to one underlying share.
CFD trading is geared which means you do not have to pay the full price of the underlying shares. The only requirement is that you pay into your account enough money to cover the initial margin. Therefore you might only need R15,000 to purchase Contracts For Difference up to a value of R100,000. If your investment rises to R115,000 - equaling a 15% rise in the value of the position - you will in fact make a 100% return on your investment, as you only invested R15,000 initially. Remember though that there is interest payable on the borrowed portion.
Another important feature of CFD trading is that you can open a "long" position or a "short" position. A "long" position involves purchasing the contracts and selling them again at a later stage, hopefully after the price has risen. Therefore "long" positions make money in a rising market. A "short" position is the reverse - selling contracts first and buying them back later. If you manage to buy them back at a lower price, you will make money. Therefore "short" positions make money in a falling market.
Hope that helps!
CFD trading is geared which means you do not have to pay the full price of the underlying shares. The only requirement is that you pay into your account enough money to cover the initial margin. Therefore you might only need R15,000 to purchase Contracts For Difference up to a value of R100,000. If your investment rises to R115,000 - equaling a 15% rise in the value of the position - you will in fact make a 100% return on your investment, as you only invested R15,000 initially. Remember though that there is interest payable on the borrowed portion.
Another important feature of CFD trading is that you can open a "long" position or a "short" position. A "long" position involves purchasing the contracts and selling them again at a later stage, hopefully after the price has risen. Therefore "long" positions make money in a rising market. A "short" position is the reverse - selling contracts first and buying them back later. If you manage to buy them back at a lower price, you will make money. Therefore "short" positions make money in a falling market.
Hope that helps!
http://www.psgonline.co.za/landing-pages/trade-cfd.php?gclid=CMTv46Pa-q4CFQUOfAodAjFuyw
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