Theory Questions

1. Define a CFD contract and explain how it is different from a futures contract.

2. What are the salient product features of CFD?

3. Is short-selling possible with CFDs, and if so are there any advantages?

4. How is the funding cost computed for a CFD contract?

5. What are the margin requirements for a CFD contract?

6. Discuss briefly the advantages and disadvantages of a CFD contract.

7. “CFD is highly risky.” Do you agree? Give reasons for your answer.

8. How is a CFD contract terminated?

9. Explain the trade life cycle for a CFD contract and what journal entries are passed for each event in the cycle.

Please enrol me for the free email course

on Basics of Accounting for Financial Instruments

Join our mailing list to receive the latest news and updates from our team.

You have Successfully Subscribed!