MF Global

Why Trade CFDs?

Leverage

The key benefits to leveraging are:

The ability to potentially increase your returns
The ability to diversify your portfolio

When opening a CFD position, you only require a small percentage of the position value allowing you the ability to potentially increase your returns and diversify your portfolio. Below is an example of leveraging your portfolio and the potential for increased returns.

Opening your CFD Position:

CFDs - Leveraged trade		Traditional Trade with no Leverage
Buy Price	$5	Buy Price	$5
Margin required (3%)	$300	Inital Outlay	$10,000
Commission charge (to buy)	$10	Commission charge (to buy)	$25
Total Outlay	$310	Total Outlay	$10,025

Closing your CFD Position:

CFDs - Leveraged trade		Traditional Trade with no leverage
Sell Price	$5.20	Sell Price	$5.20
Gross profit/loss	$400	Gross profit/loss	$400
Total Commission charges (to buy and sell)	$20	Total Commission charges (to buy and sell)	$50
Overnight financing: 1 day	$2.08	Over night financing: 1 day	Zero
GST	Zero	GST	$5
Net profit/loss	$377.92	Net profit/loss	$345
Return On Investment (ROI)	122%	Return On Investment (ROI)	3%

With MF Global you have access to powerful leverage from as low as 3% margin for share CFDs, that's over 33% leverage.

Profit in falling markets - to hedge or go short

CFDs give you the ability to profit when the markets fall, as easily as when they rise. You can also hedge your long share positions in falling markets by shorting with CFDs.

CFDs provide you with more trading flexibility and give you more opportunities to profit.

It is just as easy to sell a CFD as it is to buy.

Going short means opening a position by selling with the aim of profiting in a falling market. Therefore, using CFDs you have the opportunity to profit from both rising and falling markets and you can also protect your long term share investments from short term market corrections.

Dividends

The "ex-dividend date" for listed security may be the first day where that security is traded without being entitled to a previously declared dividend.

CFDs pay dividends on the ex-dividend day for long positions. Conversely if you have a short position this will be deducted from your account on the ex-dividend day.


	$A slightly weaker at noon The Australian dollar was weaker at noon after mixed employment figures suggested the Reserve Bank of Australia (RBA) might hold interest rates steady in April. ASX flat at noon, reversing direction The Australian stock market was flat at noon, reversing early gains as market players absorbed the latest set of employment figures. Stocks to watch Stocks of interest on the Australian stock exchange at noon. Credit Suisse prices $1.1b of 4-yr bonds Credit Suisse has priced its inaugural Australian bond sale, with the issue of $1.1 billion of four year notes. Centrebet defends takeover talk Centrebet International says it first become aware of takeover proposals in February but did not tell the market until this week for reasons of confidentiality. Cooper Energy hampered by flooding Cooper Energy says flooding in the Cooper Basin is likely to have an impact on its South Australian operations as roads are cut off and... 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Home lending fall dominated by first-timers Housing loan approvals fell again in January as an increased flow of credit to investors was more than offset by the continued slide in lending... AMP appoints new infrastructure head AMP Capital Investors has appointed Boe Pahari as head of infrastructure Asia Pacific, to lead its infrastructure investment team. Under-supply challenges recovery: RBA A greater share of the economy needs to be devoted to housing to deal with a population boom, or property prices and rents will rise,... Aussie dollar firms, bonds weaker The Australian dollar was slightly higher at noon, as a strong consumer confidence report prompted anticipation of firm official labour force figures. ASX down on weaker materials, property The Australian stock market had moved into the red at noon on Wednesday after eight straight session of gains, led by weaker materials and property... Stocks to watch Stocks to watch on the Australian stock exchange at noon. 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