CFDTrading provides daily news, technical analysis, and research on the top 5 cryptocurrencies and 40 forex pairs, as well as featured pieces exploring longer term trends for CFD traders.
Featured
Are the Maximalists Wrong? Bitcoin’s Dominance Has Been Trending Down For the Past Six Months
In fact, for the past two and a half months (since December 14 of 2019), Bitcoin’s price and dominance have been strongly inversely correlated: a 95% confidence interval puts correlation between -.92 and -.81, which is nothing short of stunning; it basically reveals that an increase in Bitcoin’s price is almost certainly accompanied by a decrease in its dominance level.
Forex
Daily technical analysis and news updates on the 40 most actively traded major forex pairs. For the full list, visit our forex market news archive. Current popular pairs: AUD/CAD, EUR/SEK, NZD/JPY, TRY/JPY.
GBP/USD Down 109 Pips; Breaks Below 20 and 100 Day Averages
The clearest trend exists on the 30 day timeframe, which shows price moving down over that time.
EUR/USD Eyes 20 Day Average; Doji and Pin Bar Patterns Appearing on Chart
Out of the 40 instruments in the forex asset class, eur/usd ended up ranking 22nd for the day in terms of day-over-day price change.
USD/CHF Up 7 Pips, in an Uptrend Over Past 30 Days; Pin Bar Pattern Appearing on Chart
The closest is the 20 day average, which is 2.9 pips away.
USD/JPY 3 Day Down Streak Snapped; Eyes 20 Day Average
This imputes a buy/sell ratio of 0.89, which is neutral.
Crypto
Technical analysis, featured tweets, and important articles on the five major cryptocurrencies. Below are the latest regarding Bitcoin and Ethereum; see our crypto news archive for the full catalog, or visit our specific sections on Bitcoin Cash, Ripple, and Litecoin to learn more.
Ethereum (ETH) Heads Down For the 3rd Day In A Row; in an Uptrend Over Past 90 Days
The price move occurred on stronger volume; specifically, yesterday’s volume was up 103.11% from the day prior, and up 66.13% from the same day the week before.
Bitcoin (BTC) Moves Down For the 3rd Day In A Row, Breaks Below 50 and 200 Day Averages; in an Uptrend Over Past 90 Days
The price move occurred on stronger volume; specifically, yesterday’s volume was up 78.63% from the day prior, and up 24.36% from the same day the week before.
What is CFD Trading?
CFD trading is essentially speculating on an asset without taking control of the underlying asset. For instance, if you buy a share in a given publicly traded company, you are an actual owner of that company, and entitled to certain legal ownership rights. If you own a CFD in a given company, you are in an agreement with your broker to speculate on the share price of the company at hand. Your contract is not with the publicly traded company, but with the broker you are trading with. This concept can be extended to any other asset as well; for instance, CFD trading of cryptocurrencies means you are not actually owning a cryptocurrency, but are simply speculating on the price of the cryptocurrency via a contract you have with your broker. CFD is an acronym for “contract for difference” — meaning it is a contract with your broker in which one party will pay or receive from the other party the difference in the contract price they agreed to.
Why Trade CFDs?
CFD trading is simpler and easier than owning the underlying asset. Trading cryptocurrency or foreign exchange CFDs means the trader can focus solely on speculating on price, and does not have to worry about key management in a crypto wallet, or taking delivery of legal tender currency. If your objective is to speculate on a given asset, CFD trading may be the most direct method of doing so, and one that is less expensive and simpler. Alternatively, if you are concerned with actual ownership of the underlying asset, than CFD trading may not be the best option for you.
Learn More About CFD Trading
Try the links below to learn more about CFD trading:
Investopedia’s Introduction to CFD Trading. A nice introduction to CFD trading, giving a balance assessment of the pros and cons. The claim that CFD trading is more expensive due to spreads, though, is questionable; spreads are paid when the asset is owned outright as well, though in those cases the spread is often less visible — and can be accompanied by a commission, making the overall transaction much more expensive. Ultimately, the cost of CFD trading relative to outright ownership depends much on the broker, the asset being traded, and the size of the position assumed.
Wikipedia: The History and Origins of CFD Trading. Wikipedia’s entry on CFD trading provides a detailed overview of how CFD trading works, how it began, what markets are typically offered by CFD brokers, the legality of CFD trading in jurisdictions around the world, and praise and criticisms from observers about CFD instruments.