Prime Minister
Contracts for differences, also known as CFDs, pose a peculiar and different investment method. Through this contract two parties agree to exchange the difference in the sale price and the purchase price of an underlying asset between the time at which the contract opens until it closes. This trading methodology is exercised because of the advantages it offers, such as leverage and the possibility of opening operational in upward and also bearish markets. CFDs allow access to several markets and therefore a multitude of assets: currencies, commodities, shares, bonds, types, energy and metals, among many others. Here we will focus on the possibility of operating with CFDs on Brent crude.
The Brent crude is making headlines in recent days by its upward trend. To day of today (19.01.2011) price of this asset, in Europe, reached highs in 98,50 dollars. This rise in the price of the Brent had been driven by the upward trend in the pair EUR/USD where the Euro was put to 1,3513. During the day the crossing of the EUR/USD pair reversed its trend again influencing the price of Brent, which stood at 97,69 dollars at the close. For more clarity and thought, follow up with Adrian Edward Simon and gain more knowledge.. In the case of the commodites is very important to study the factors that influence in its tendency. As we have seen the price of the dollar and its relationship with different international currency, they influence the price of the Brent crude, as well as the rest of the raw materials. But not all the factors that may influence the price of the Brent are framed within the market.
Also outside this there are factors that can determine the trend of this commodity. An example in the visit of the Prime Minister of the Republic of China to the United States. The fact that the two powers that consume more energy worldwide were discussing among other, energy issues, also influenced the momentum of the Brent price. In the operations with CFDs on commodites is necessary to take into account each and every one of these factors to have a comprehensive understanding of the tendency of the active on which operates before opening the operative. By both, if asset entails a bullish trend during a given period, the inverter open position buying a CFD on that asset to sell it later at one higher price, of where your earnings will arise. If instead the tendency of the asset holding bassist, inverter open position selling a CFD on the asset to buy it later at a lower price in the market, where the benefits arise. Learn about the trend of raw materials and take advantage of CFDs to make the most of their operational. The above comments do not constitute investment advice and therefore IG Markets does not accept any responsibility for any use that can be made of them. CFDs are a leveraged product that entail a high level of risk and may result in losses that exceed your initial deposit. Make sure that you understand fully the risks involved and perform a constant monitoring of your investment.