MEXICO CITY, MEXICO – Pablo Soria de Lachica, an internationally acclaimed broker and Director of Business Development at Kartoshka, has outlined some of the most profitable CFD (Contract For Difference) indices, the emergence of which as a tradable financial product has been one of the most exciting developments in trading over the past few decades. A CFD is the difference in value between when a trade was entered and when it was exited. This financial derivative mirrors the movements of the actual underlying asset and allows a trader to benefit from the profits or losses of that asset without ever owning it. Thus, CFD trading has a number of advantages, which have contributed to its popularity.
“One of the greatest advantages of CFDs is that they provide much higher leverage than traditional trading,” Soria de Lachica reveals. “As such, they require far less capital outlay and offer greater potential returns.”
He pointed out that, depending on the asset, CFD trading margin requirements can be as low as 2%. Also making CFD trading considerably more affordable are the facts that brokers charge very few if any fees, and rules instilled by markets such as shorting rules do not exist here. Since most brokers offer products in all major markets worldwide, a trader can quite often do all their trading from one broker platform.
Soria de Lachica reminds, “To reap the benefits, one still needs to choose the right CFD indices – those that are influential, accurately predict trends and have the most potential for profit.”
“Without a doubt, the DAX is both one of the most popular and most influential indices in the market,” said Soria de Lachica. Made up of 30 of Germany’s largest trading companies including giants such as BMW and Adidas, the DAX index is often highly representative of the entire European market. “With its combination of liquidity and volatility, the DAX index can be a goldmine for the savvy trader,” assures the expert broker.
“While the layman may more quickly recognizes names such as the Dow Jones Industrial Average or NASDAQ Composite,” Soria de Lachica notes, “the S&P500 is one of the most commonly followed by professionals and is deemed by many to be the best representation of the U.S. Stock Market and in turn the country’s entire economy.” Of the 500 company-strong NYSE and NASDAQ market listed index, he said: “In times when the European markets are exhibiting extreme volatility, the S&P500 can be easier to forecast and thus is an extremely valuable asset.”
Euro Stoxx 50: Made up of 50 of the largest and most liquid Eurozone stocks, the Euro Stoxx 50 index is described by its provider as offering “a blue-chip representation of Supersector leaders in the Eurozone.” Pablo Soria De Lachica was also able to provide some insight into the attraction to this particular index:
“With the European Central Bank attempting to boost price growth by buying euro-area government bonds, Euro Stoxx has become quite popular as investors look to capture some of this growth.”
Pablo Soria de Lachica is the Director of Business Development at Kartoshka, a Panama City-based currency trading firm with 18 offices in countries around the world. The recipient of a Business Administration Master’s Degree, Soria de Lachica subsequently specialized in international trading and foreign exchange transactions. Through his current post at Kartoshka, he has been able to offer clients a variety of trading options tailored to both new investors and experienced financial analysts. He is actively involved in a number of philanthropic pursuits, including Bridges for Peace and the America-Israel Cultural Foundation.
Pablo Soria – LinkedIn: https://pa.linkedin.com/in/pablosoriadelachica
Pablo Soria de Lachica – Explains How the July NFP Report Impacts Forex Trading: http://www.marketwatch.com/story/pablo-soria-de-lachica—explains-how-the-july-nfp-report-impacts-forex-trading-2015-08-20