The Advantages of CFD Trading for Professional Investors
Contracts for Difference, abbreviated as CFDs, are derivative instruments which enable investors to speculate on an extensive array of monetary markets, without directly taking the ownership of the prime asset. The contract in question is the agreement between the seller and the buyer to exchange that difference which arises when the opening price of the specific asset being traded is subtracted from the closing price. This means the buyer is paid by the seller the difference between the opening price and closing price of the contract.
With Contract for Difference, the seller only pays the buyer when the difference between the starting and closing price is positive. However, in case the difference is negative, the buyer is the one supposed to pay the seller.
CFDs are always traded on margin. Therefore, as an investor you should keep the lowest limit margin level possible to ensure the position remains open. If the amount of money deposited drops below the lowest limit margin level, you will receive a margin call and you’ll be required to pay additional cash into account.
The Advantages of CFD Trading for Professional Investors
Contracts for Difference give professional investors a chance to open short and long position. As a trader, you select Long Trade when purchasing an asset that you expect its price to rise significantly. With Short Trade, a trader sells an asset expecting its price to fall drastically so that he or she can purchase it back at a lower price. CFDs offer investors with a wide range of benefits when weighed up with other, more conventional forms of investment. Here are some reasons which make CFDs a popular form of investment among most professional investors:
- The Opportunity to Trade on both Falling and Rising Markets
With CFD trading, investors get the opportunity to trade on the price of an item going up as well as down, which means they can benefit from both sides of the coin if they make wise decisions. Most professional investors use Contract for Difference as a way to hedge their existing portfolios via times of short-term volatility.
- No Stamp Duty
CFD trading is more cost-effective than most of the other types of investment because it is not exposed to any stamp duty payment. Unlike conventional share dealing, with CFDs, investors do not pay stamp duty on a trade. This is because Contracts for Difference are derivative instruments and therefore investors never take the physical ownership of underlying asset.
- Investing in an Extensive Range of Markets
If you register with a reliable online CFD broker, you’ll have a chance to invest in an extensive range of monetary markets via an online based trading platform. From just a single account, investors have access to CFDs on forex, indices, shares, spot metals, bonds, commodities and ETFs, offering a wide array of investment opportunities.
- Trading on Margin
Trading on margin helps investors to enhance their trading capital. Via the use of monetary leverage, an investor can trade the markets with just a small initial deposit. The leverage serves as a loan which investors take from their broker, allowing them to control huge CFD positions available in the market by simply investing a small amount of capital reserved as margin.
- Efficient Use of Capital
With CFD trading, traders can choose to trade utilizing margin, which gives them leverage. This indicates they can trade without necessarily putting down the entire worth of a position. As an investor participating in CFD trading, since your money will not be tied up in a single transaction, you’ll have a chance to utilize it for other forms of investment.
The Bottom Line
Most aggressive, risk willing traders consider using leverage to improve returns as probably the most crucial benefit of the CFD trading. This is because they get the opportunity to trade on margin, which means they are not required to deposit the entire amount of capital of the exposure that is taken in CFD trading account. For instance, if you’re an investor and you have a trading capital that amounts to 100K, you may only require to deposit 10K to qualify to trade the size of a 100K account.
If you are looking for a viable online investment option, choose CFD trading today and get a chance to trade any time you want. CFD trading does not have a fixed expiry date!
The Ultimate Guide to the Essential Social Skills in Business
Effective communication and strong relationships are essential for success in the workplace. One factor that can greatly influence these qualities is emotional intelligence, often abbreviated as EQ. EQ refers to the ability to identify, understand, and manage one’s own emotions, as well as the emotions of others. Research has shown that individuals with high levels of EQ are better equipped to handle stress, communicate effectively, and work collaboratively with others (Chamorro-Premuzic & Sanger, 2016).
Research has consistently shown that emotional intelligence (EQ) is an important predictor of job performance and success in the workplace. EQ is comprised of a set of skills that allow individuals to recognize, understand, and regulate their own emotions, as well as the emotions of others. In addition, individuals with high EQ are better able to communicate effectively, build relationships, and navigate complex social situations. As a result, they are often viewed as effective leaders and collaborators, and are more likely to achieve their personal and professional goals.
In fact, a number of studies have demonstrated the significant impact that EQ has on job performance and success. For example, one study of 85 upper-level managers found that those with higher EQ scores were rated as more effective leaders by their subordinates (Law, Wong, & Song, 2004). Another study of 151 employees found that those with higher EQ were more likely to be promoted within their organization over a five-year period (Carmeli, Brueller, & Dutton, 2009). These findings highlight the importance of EQ in the workplace and suggest that developing these skills can lead to significant benefits for both individuals and organizations.
According to a study conducted by TalentSmart, a leading provider of EQ assessments, EQ is responsible for 58% of success in all job types (Bradberry & Greaves, 2009). In contrast, IQ only accounts for about 4% of success in the workplace. This suggests that EQ is a crucial skill set for individuals in any professional field. Fortunately, EQ is a skill that can be developed and honed over time with practice and awareness.
There are several key components of EQ that are particularly important for success in the workplace. These include:
Self-Regulation: This refers to your capacity to recognize and control your emotions. Sometimes treating them when they arise may be necessary. Understanding how to manage your anger is essential. However, it can also cover how to control the feelings you’ll experience.
Self-Awareness: This implies recognizing and understanding your own feelings. Do noisy places make you nervous? Do other people talking over you make you angry? Knowing these truths about yourself shows that you are working on your self-awareness. Being conscious of yourself is necessary for this phase, which can be more complex than it sounds.
Socialization: This category focuses on your capacity to manage social interactions and direct relationships. It doesn’t entail dominating others but knowing how to work with others to achieve your goals. This could entail presenting your ideas to coworkers, leading a team, or resolving a personal disagreement.
Motivation: Strong motivators include external forces like money, status, or suffering. Internal motivation, however, plays a significant role in Goleman’s concept. By doing so, you demonstrate your ability to control your cause and initiate or continue initiatives of your own volition rather than in response to external demands.
Empathy: It’s equally critical to be sensitive to others’ feelings. This may entail learning to identify different emotional states in individuals — for example, can you tell the difference between someone at ease and someone anxious? — but it also requires comprehension of how other people may react to their current situation. Empathy is one of the essential traits in business and business leadership.
A thought leader in this space, Michael Ventura has built a career advising organizations on the importance of emotional intelligence in the workplace. In his book, Applied Empathy, Ventura highlights the value of empathy in business and provides strategies for developing and applying this skill set. With two decades of experience as a leader, facilitator, and educator, Ventura’s work has made impact in with prestigious institutions such as Princeton University and the United Nations as well as corporate clients such as Google and Nike.
Through his work, Ventura advises leaders to focus on the development of EQ in order to help individuals improve their communication, collaboration, and leadership skills, ultimately leading to greater success in the workplace. Experts like Ventura continue to support the growing body of research on the value of EQ in business, and the evidence that organizations who invest in the EQ of their teams help to create a more empathetic and successful professional environment.
And it’s worth noting that EQ isn’t just important for individual success in the workplace, but also for overall organizational success. A study by the Center for Creative Leadership found that EQ was a better predictor of success than IQ or technical skills in the workplace, and that teams with higher levels of EQ tend to be more effective and productive (Boyatzis, Goleman, & Rhee, 1999). By cultivating a culture of empathy and emotional intelligence, organizations can improve their overall performance and create a more positive work environment for their employees.
In conclusion, emotional intelligence is a crucial component of success in the workplace, and individuals and organizations alike should prioritize the development of these skills. The ones that do not only develop a leading edge in their category, but also become a meaningful place to work for their teams. And in today’s rapidly changing talent landscape, the retention of highly capable, emotionally intelligent leaders is one of the greatest keys to unlocking success.
Boyatzis, R. E., Goleman, D., & Rhee, K. S. (1999). Clustering competence in emotional intelligence: Insights from the emotional competence inventory (ECI). In R. Bar-On & J. D. A. Parker (Eds.), Handbook of emotional intelligence (pp. 343-362). Jossey-Bass.
Bradberry, T., & Greaves, J. (2009). Emotional intelligence 2.0. TalentSmart.
Chamorro-Premuzic, T., & Sanger, M. N. (2016). Does employee happiness matter? Journal of Organizational Effectiveness: People and Performance, 3(2), 168-191.
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