[LINK] Online trading .. ASX Seminars

[stephen at melbpc.org.au]

Hi all

A while ago I wrote about a new form of financial market, and that's 
online CFD trading. It's not your normal share market .. it's instant.

Normal share trading is a weekly/monthly activity .. whilst trading in the 
entirely online Australian CFD market is a second/minute buy/sell process.

It's absolutely ideal for the Web2 world .. and, is growing exponentially.

Also now that the new ASX CFD site will not be 'propriety' and will allow 
clients to choose whom they trade ASX CFDs with .. I believe CFD trading 
will eventually eclipse the longer-term traditional share-market process,
simply because instant data/communications and CFDs are such a good match.
 
<http://www.asx.com.au/resources/newsletters/investor_update/20070808_exerc
ising_leverage_asx_cfds.htm>

Home > Exercising leverage - ASX CFDs 

Exercising leverage

Strong market returns in the last few years have resulted in increased 
trader confidence and have sparked heightened interest in the use of 
leveraged instruments. 

Contracts for Difference (CFDs) in particular, with their ease of use and 
high liquidity, have experienced rapid growth in popularity amongst 
Australian traders. 

The boom in CFDs has served to further heighten awareness of the use of 
leverage generally to maximise trading returns. 

Traders and investors with knowledge and discipline are recognising the 
potential of leveraged products. Knowing when and how to use them is an 
important part of any trading business. Good money management is very 
important when you are trading with leverage, because you are exposing 
yourself to greater gains - and losses - than in other forms of trading. 

This article provides a glimpse into the features of the soon to be 
released exchange-traded ASX CFDs.

ASX CFDs

In September 2007, the Australian Securities Exchange (ASX) will be 
launching exchange traded CFDs on SYCOM - the trading platform of its 
subsidiary, the Sydney Futures Exchange (SFE). 

They will be known as ASX CFDs. 

The initial product suite will include CFDs on the Top 50 ASX stocks, six 
major global equity indices, eight of the major foreign exchange (FX) 
crosses, and CFDs on gold and oil.

Liquidity and price spreads are to be provided by up to ten designated 
market makers approved by the ASX. Brokers who intend to offer ASX CFDs to 
their clients will be accredited and monitored by the ASX. 

Phase 1 ASX CFD products

Equities Indexes FX Commodities 
Top 50 ASX 
Listed Equities S&P/ASX 200 AUD/USD Oil 
  DJIA AUD/NZD Gold 
  NASDAQ AUD/EUR   
  FTSE AUD/JPY   
  DAX® USD/JPY   
  Dow Jones 
EURO STOXX® EUR/USD    
    NZD/USD   
    NZD/JPY   


Choice
The ASX is providing the marketplace for trading ASX CFDs, and brokers 
will be able to provide and implement trading platforms and a variety of 
services for their clients. This will allow clients to choose whom they 
trade ASX CFDs with. Clients of existing stockbroking firms who have 
hesitated to trade CFDs through another specialist provider may now be 
able to trade ASX CFDs through their current stockbroker. 

Transparency and consistency
As a range of brokers will offer ASX CFDs, fees and charges will be 
clearly displayed and publicly available. ASX CFDs will provide consistent 
product design across the various asset classes - clients will be able to 
trade a standardised contract regardless of the broker they choose to 
trade with...

Index and commodity trading
CFD traders will be able to trade the indices, FX crosses and commodities 
listed in table 1. Traders will also be able to access and trade these 
instruments through their existing brokers, based in Australia, from one 
account. 

Further developments
ASX will provide a series of educational seminars for traders and 
investors prior to the release of ASX CFDs. There will also be ongoing 
trader education programs and tools to help improve market understanding 
amongst potential and existing CFD traders. There will also be ongoing 
broker education and training, helping to maintain high standards amongst 
the ASX CFD accredited brokers.

The range of CFDs offered by ASX is also expected to increase as the 
market develops.

Trade well.

About the author
Kel Butcher is a full-time futures, equities and CFD trader. He also acts 
as a mentor and coach to other traders. He can be contacted by email at 
kel at tradingwisdom.com.au.

This article is an edited extract from 'Exercising Leverage' - originally 
published in the Jul/Aug 07 issue of YourTradingEdge magazine 
www.yte.com.au. All rights reserved. © Copyright 2007, MarketSource 
International Pty Ltd.

Free Seminar series - An introduction to ASX CFDs 

Over the last few weeks ASX has conducted FREE seminars in Adelaide, Perth 
and Sydney for traders and investors keen to know more about the ASX 
product range. The seminars have also given traders and investors the 
opportunity to meet some of the brokers and advisers who will be offering 
ASX CFDs. 

Brisbane, Melbourne and Sydney seminars will be conducted over the next 
few weeks. The level of response to the seminars has been so strong in 
each of the cities that  ASX has scheduled several additional seminars. 

Sydney: August 16, 17, 18 
Brisbane: August 21 (3 sessions)
Melbourne: September 4 (3 sessions)
Sydney: September 11, 13 and 15.

ASX is now accepting registrations on its website for these free seminars. 

Registration is essential and seminars have been booking out fast. You are 
encouraged to register soon to ensure your place.
--

Cheers all ..
Stephen Loosley
Victoria, Australia