Contracts-for-difference provides a vast range of tradeable assets, including stocks index, commodities, indices, cryptocurrencies, global stock, and foreign exchange. With such diversity, the contracts-for-difference trading arena warrants unmatched access to an extraordinary volume of financial instruments and high-leverage business opportunities. To learn how individuals and small teams maximize CFD business opportunities, buckle up and continue onward.
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A recent study published from Indiana University confirmed that in over 75,000 research reports, Robo-advisors were more accurate than human analysts. Not subject to human emotions, Robo-advisors are heavily recruited in the fast-paced world of over-the-counter CFD trading. Studies found that they generated 5% better returns, and in an industry where percentages are everything – this is significant. As a result, it comes as no surprise that many novice CFD operators are integrating Robo-advisors into their business strategy plan for maximized revenue potential.
Individuals that possess considerable trade knowledge understand that correlational analysis and leverage are two high-caliber facets of CFD trading that can significantly balloon your business revenue. Correlational analysis, or the statistical correlation between two assets, presents access to more trading opportunities.
By using a correlational analysis tool, trade operators can see how strongly correlated two assets are. Correlations pan out in one of three ways: 1) a positive correlation (moving in the same direction), 2) a negative correlation (opposite directions), and 3) weak (no strong positive or negative correlation).
Business owners with small starting budgets and a foundation of trade knowledge can consider using leverage to magnify their trade positions, which in turn, can significantly amplify accrued trading profits. Most CFD brokerages offer leverage of 1:100, meaning that you can leverage $100 for every $1 in your trading account (keeping in mind margin). However, just as leverage has the power to magnify ROIs, it also carries enormous risk; therefore, invest with leverage wisely.
