The base values ​​of the CFD are stocks, indices, currencies, such as: USD, EUR, YEN. If the price development determined with the trade corresponds to the actual price development, the customer wins. If not, he loses.

With a relatively low capital investment (margin), a considerable volume of trading transactions is usually made possible (leverage), which means that very high risks of loss are offset by high opportunities for profit.

Statistically speaking, most investors lose (in the long run!) And as a rule almost everything they have invested. This makes it irrelevant for most investors what is relevant when obtaining permits for the initiators of the trading platforms, depending on whether they are only conveying the trades to investors themselves, or whether they are even the investor’s opponents, namely: How much of money is to be deposited.

Many investors do not realize:

Derivative securities transactions, such as CFD and Forex, or commodity futures, crypto currency are not traded on a state-monitored stock exchange, but on a so-called secondary market.
Buying and selling prices are set by the trading platform operating companies. At best, these operating companies are state-licensed securities dealers.
These trading platforms act in the secondary market either (only) as a so-called “introducing broker” or as a broker with a “large broker license”. Introducing brokers (in German also “intermediaries”) mediate transactions with another securities trading company, the so-called “market maker”. Or the operating company of the trading platform itself has a large broker license. Then the trading platform is usually also the investor’s betting opponent, as it has the right to enter itself. The contractual partners of the trade are thus the financial service providers themselves who are under financial supervision at their headquarters as the operating company of the respective trading company, e.g. in Germany the supervision of the Federal Financial Supervisory Authority (BaFin). Either as an intermediary for derivative transactions or as a contractual opponent. A large number of forex brokers have their operating companies in Cyprus in such a way that the Cyprus Securities and Exchange Commission (Cysec) has the supervision. A number of operating companies are located in (non-European) foreign countries and are not under supervision. According to the site https://1broker.org The latter offshore societies are urgently to be avoided. Simply because the operators, if at all possible, are very difficult to prosecute legally. As a result, those responsible for these trading platforms often practice fraud models that merely pretend the possibility of derivatives trading (even if perfectly represented on the virtual customer account). This, but without any repayments to the investor, or the actual real trading via the representation on the virtual customer account are planned.

These off-shore trading platforms (also known as the black capital market) are often operated by highly criminal subjects. There are and still were isolated examples of operators who also conduct commercial business in Germany without state permission without the permission of the German or European supervision.

Therefore, the trader should make sure that the contracting partner for CFD transactions is looking for a trading platform with an operating company as the contracting partner who is based as a licensed securities trader in Germany, or at least in Europe.

But even with licensed securities dealers, CFD trades remain high risk for reasons that I don’t think most traders are aware of, because:

The business does not take place on an exchange.

These transactions are carried out on the so-called secondary market itself, i.e. at best by one or more licensed securities dealers outside the stock exchange. In contrast to the exchange, in which all admitted exchange participants are liable for the fulfillment of the transactions, the individual trading transactions are only transactions on the secondary market. And even if the securities dealers who operate the trading platform are authorized and supervised by supervision, the conclusion or brokerage of individual transactions is not. The price formation on the trading platforms themselves, i.e. the settlement of the trades, is not specified by a clearing system with regard to the individual trading transactions as on a state stock exchange. The settlement of the buying and selling prices is done by the operators of the trading platforms. There is thus a risk of manipulation.

In the case of the exclusive forwarding from a trading platform to so-called further trading platforms that are market makers, the market maker or the trading taking place from his trading platform dictates the price formation.

There is thus a risk of manipulation.

Those in charge of the operating companies earn either from costs and commissions, or directly from the loss of customers. This is because they are allowed (depending on the form of the officially granted permission of the financial supervisory authority) the so-called self-entry (if so-called “large broker license granted”).

In doing so, those responsible for the trading platforms are pursuing the goal of ensuring that as many investors as possible conduct as many trading transactions as possible.

Through advertising promises by the operators of the trading platforms, or the possibility of making profits with CFD you and derivatives trading, which is highly touted on the Internet, there may be a risk that a consumer is subject to serious errors.

Namely, that one or the other consumer comes to the not harmless conclusion that there is an objective possibility to generate sustainable income. This is when the right trading techniques, such as stopping at loss, prevent market analyzes, recognize market trends early through the use of robots and thus not only optimize profit opportunities efficiently, but also exclude losses. In individual cases I became aware that those responsible for trading platforms had repeatedly recommended the trader unsolicited to trade certain values ​​through so-called market analysts, agents or personal advisers, or even had “literally led the hand” in transactions by exerting an appropriate influence. So hold onto your money!

If you had bad experiences, send us your documents as a SCAN by email. You will receive a free initial assessment and an offer for your legal representation of interests.

Der Beitrag CFD & Forex & Derivatives – No trading on the stock exchange! erschien zuerst auf PIN-SME Crypto.

Because the crypto market is deep, emotions are boiling among investors: Last week, Bitcoin temporarily dropped by around 25 percent to $ 30,066. The value of the most important digital currency has not been so low since the end of January – the record high of just under $ 65,000, which was only reached in mid-April, has moved a long way off. Other cryptocurrencies fare similarly. Investors blame Elon Musk and his outspoken tweets. You raise serious allegations against the Tesla boss.

In fact, the Bitcoin course has been reacting to Musk’s statements for months like a fickle admirer – sometimes exulting, currently rather sad to death: His announcement that Tesla has invested billions of dollars in Bitcoin has fueled the Bitcoin rally of the past few months. Tesla’s plan to accept digital currency as a means of payment in the future drove the rate up further.

Shortly before the Bitcoin crash: Tweets from Musk create uncertainty and cause the price to fall

Then, in mid-May, the withdrawal: Musk declared that Tesla would no longer accept Bitcoin due to the poor environmental balance of the crypto currency – the course reacted promptly. “Musk got the ball rolling. It will take a while for investors to recover from this shock.

To the chagrin of Bitcoin investors, China also interfered last week at the wrong time: On Tuesday last week, the Chinese central bank declared cryptocurrencies to be “bogus currencies”, warned investors against “speculation” and called on financial institutions not to accept cryptocurrencies as a means of payment still to use. Then the Bitcoin price (and with it the other crypto currencies) fell into the abyss.

Musk stops Bitcoin slump after China announcement with cryptic tweets
Since then, Bitcoin has ranged between 30,000 and 40,000 dollars and has fluctuated greatly – also because Musk repeatedly expresses himself cryptically. “Tesla has diamond hands”, in German: “Tesla has diamond hands,” he tweeted last week. “Diamond-Hands” describe in the language of stocks an investor who will hold onto his investment until the end. The opposite would be “paper hands”. With the two emojis, Musk is indicating that he does not want to sell his Bitcoin shares. The course appreciated that.

Elon Musk (@elonmusk) May 19, 2021

On Sunday the Bitcoin price was still around 32,600 dollars, on Monday evening it climbed to 39,500 dollars and this Wednesday it is scratching the 40,000 mark. The possible reason for the stopped downward trend: Musk spoke up once more on Twitter. The Tesla boss seems to be losing some of his environmental concerns about Bitcoin: “I spoke to North American Bitcoin miners (…) Potentially promising,” the Tesla CEO tweeted on Monday.

Slight Bitcoin upswing after Musk’s tweets – investors are still pissed off
Even if Musk has caused a slight upturn in the crypto market: Crypto experts and investors would prefer Musk not to comment at all. The unanimous opinion is that it has already caused too much uncertainty in an already volatile market. “Investors who blindly followed Musk have lost a lot of money. They are scared and may never come back on the market, ”said Alex Mashinsky, head of the crypto-savings bank Celsius, to CNN. The crypto investor Eloisa Marchesoni adds: “People are angry. Musk is very calculating. “

Der Beitrag Bitcoin crash: Investors pissed off at Elon Musk – and fear his tweets erschien zuerst auf PIN-SME Crypto.

Gold recovered in European trading on Thursday morning from its eight and a half month low, which was reached midweek at $ 1,702.48 a troy ounce. The highs so far have reached US $ 1,720.96 an ounce.

According to the Beige Book published by the Federal Reserve Bank (Fed) on Wednesday evening, the US economy grew moderately in most districts from January to mid-February. Most companies remained optimistic about the next six to twelve months as vaccinations against Covid-19 progressed. Several districts expected price increases in the coming months, it said.

Chicago Fed President Charles Evans said he was not concerned about the surge in US bond yields. Because vaccinations are progressing faster than planned and the economy should recover faster, the increase is based on real factors. And although yields have risen rapidly recently, they are still low in the long term, according to Evans.

Patrick Harker, President of the Fed in Philadelphia, does not expect the Federal Reserve to raise interest rates before 2023. “I can only speak for myself, but I don’t see any rate hike in 2022,” said Harker, adding that there is still a lot of uncertainty in the economy at the moment.

As the day progressed, attention was paid to statements made by Federal Reserve Chairman Jerome Powell on monetary policy at a Wall Street Journal event and the progress of US President Joe Biden’s planned US economic stimulus package worth 1.9 trillion US dollars. After the approval of the US House of Representatives, the US Senate still has to vote. The debate on this is due to start today.

At around 9:55 a.m. CET, gold was quoted with a plus of 0.37 percent at 1,715.31 US dollars per troy ounce

Der Beitrag Gold: recovery from eight month low erschien zuerst auf PIN-SME Crypto.