Advanced
Temporarily hedging a shareholding with a CFD
A temporary short CFD can offset some price movement in an existing shareholding. It also creates a separate account that must survive its own cash demands.
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CFDs Trading Guide
Understand CFDs, interpret quotes and measure the effects of leverage, costs and execution. Follow ten stages from contract basics to strategy testing, portfolio hedging and a disciplined trading process.
Start with What a CFD gives you and what it does not, then follow the next lesson links. Explore 40 lessons with worked examples, exercises and further reading.
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Hedging and Portfolio Applications · All lessons
Hedging and Portfolio Applications
Measure the benefits, costs and remaining exposures of temporary CFD hedges.
Advanced
Index hedges and portfolio beta
An index hedge targets shared market exposure rather than every company risk. Beta provides an estimate of sensitivity, not a promise of precise protection.
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Advanced
Cross asset hedges and basis risk
A related market can move differently at exactly the wrong moment. Basis risk is the part of an exposure that a convenient hedge does not reliably...
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Advanced
Why a CFD hedge is not passive income
A hedge exchanges some market exposure for costs and operational demands. It should be evaluated as risk management, not marketed as a stream of effortless income.
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