The following is a guest blog post:
Brief Overview of Share CFD Trading
In Contracts for Difference (CFD) trading, shares of stock are not sold or bought directly. As a CFD trader, you will not own any type of physical asset. What traders have to do is to predict whether the chosen stock’s price will move up in long term or will move down in short term. XTrade Europe financial trainers explain it like this: traders are only allowed to speculate two kinds of price movements – a downward or upward change.
The CFD shares that can be traded are varied, and clients can trade in the largest global markets. As a trader, you have the option to choose shares in the US market, and in other European countries such as Spain, France, the UK, Italy, Sweden, Norway, Germany, Finland, the Netherlands, Denmark and Poland.
Advice on post-Brexit stocks investment
The United Kingdom’s exit from the European Union was one monumental decision that shook the market, and made some investors lose money. However, since many traders know how to diversity their stock allocations, there were not a lot of casualties. However, our financial experts at XTrade Europe tell us that this is an opportune time to trade in British stocks.
In fact, CFD traders may stand to gain a few more because price movements at this time are quite predictable. That said, U.K. shares have fallen in price and there is a 10% drop in the pound sterling against the U.S. dollar. However, before taking action, it is good to be cautious first and also study real-time trends and market movements. It is too early to count out the UK as a premiere European financial district, though. London’s multinational corporations and strong currency against the Euro may soften the impact.
But it should be noted that it is not just the pound sterling and U.K. stocks that have fallen in price. XTrade Europe stocks experts noted that the fact that the UK is exiting has taken the stability out of the EU. According to the Euro Stoxx 50, shares in other European countries also plummeted. To be precise, it’s almost 10% in Germany, 14% in Spain, and 11% in France. Stocks also plummeted by 16% in Greece and Italy.
XTrade Europe has named some stocks that displayed resilience amidst the Brexit debacle. It is good to note the names of these companies that most analysts believe will still do very well despite Brexit. These companies are NXP Semiconductors and Mimecast Ltd. NXP Semiconductors, formerly Motorola, is based in the Netherlands. It is in the very strong electronics sector, so it is not likely to lose in the near future. Mimecast, a London-based company, specializes in cloud-based email management. Their stocks are also not likely to plummet. Before making a decision during CFD trading, it is advisable to study all market trends in order to get the possible payout.