11 January 2010

CFDs, Spread Betting - too Risky for New Rules?

Severe weather might be causing new chaos across Europe, but in the financial world there is an air of cleaning up. As the world recovers from a severe period of recession, world leaders are beginning to figure out new strategies for the world economy.

Many wonder about the role of speculative trading - CFDs, Futures and spread betting are all in the spotlight. Will there be great changes to the way that derivatives are traded or will it be business as usual?

According to experts, there are links between the nature of speculation within the financial community, and the fall of many key banks towards the end of 2008. Yet there have been no indications as yet that retail traders (in other words, regular individual investment traders) will be greatly affected by possible changes.

Yet trading in derivatives for large corporations - especially investment banks - might be monitored much more tightly to prevent another breakdown in the future.

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