CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 82.67% of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money

Trump trades charge as Bitcoin hits $US80,000

By Kyle Rodda

10:48, 13 November 2024

Wall Street finished the week on a high as the so-called “Trump trades” charged. Equities are at the end of an almost unprecedented risk-laden three weeks, which included a deluge of data, a flood of mega-cap earnings, a Fed decision and a high stakes US election. At the end of it all, the markets mostly got what they wanted to see: signs of resilient economic activity, decent earnings growth, an interest rate cut, and a Trump victory that opens the door to tax cuts and massive amounts of fiscal stimulus. That’s driving US stocks to record highs, with small caps and cyclicals outperforming, with the US Dollar and yields lifting, too.

(Source: Trading View)
(Past performance is not a reliable indicator of future results)

Bitcoin hits record highs on lower regulatory risk, prospect of deeper deficits

The Trump-trades were on full show, with US indices hitting record highs as cyclicals, especially small caps, outperformed. The US Dollar also rallied and yields edged higher. That wiped the shine off of gold, which has been a part of the “Trump-trade” basket but has been mechanically weighed down by the effects of a stronger Dollar. The biggest market endorsement of all comes from Bitcoin, however, with the crypto hitting $US80,000 for the first time as Trump heralds a period of much lower regulatory risk and a desire to find hedges and alternatives ahead of a very likely boom in US government spending.

BTC/USD

95,205.20 Price
-1.170% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 106.00

XRP/USD

1.45 Price
-3.500% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.01168

XLM/USD

0.47 Price
-6.050% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 0.00216

ETH/USD

3,559.33 Price
-2.170% 1D Chg, %
Long position overnight fee -0.0616%
Short position overnight fee 0.0137%
Overnight fee time 22:00 (UTC)
Spread 6.00

(Source: Trading View)
(Past performance is not a reliable indicator of future results)

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The difference between trading assets and CFDs
The main difference between CFD trading and trading assets, such as commodities and stocks, is that you don’t own the underlying asset when you trade on a CFD.
You can still benefit if the market moves in your favour, or make a loss if it moves against you. However, with traditional trading you enter a contract to exchange the legal ownership of the individual shares or the commodities for money, and you own this until you sell it again.
CFDs are leveraged products, which means that you only need to deposit a percentage of the full value of the CFD trade in order to open a position. But with traditional trading, you buy the assets for the full amount. In the UK, there is no stamp duty on CFD trading, but there is when you buy stocks, for example.
CFDs attract overnight costs to hold the trades (unless you use 1-1 leverage), which makes them more suited to short-term trading opportunities. Stocks and commodities are more normally bought and held for longer. You might also pay a broker commission or fees when buying and selling assets direct and you’d need somewhere to store them safely.
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