CFD Trading in Italy Mar06

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CFD Trading in Italy

Contracts for Difference and CFD Trading in Italy

Contracts for difference (CFDs) are becoming popular in many countries. They started in London in the 1990s, and have expanded around the globe with the notable exception of the USA, where the Securities and Exchange Commission (SEC) do not permit them. It’s not surprising that they’re catching on so quickly, as they allow the astute trader to make profits much more quickly than trading in simple shares. They have been compared to trading shares but with largely borrowed money, and that is a fair assessment of the practical effect of trading CFDs.

CFD Trading in Italy

Brokers offering CFDs have opened branches in many European countries, and Italy has a local branch of IG Markets, a worldwide broker headquartered in London. CMC Markets is another large dealer that has spread worldwide, and also has an Italian division. Both of these CFD brokers are regulated by the Financial Services Authority (FSA) in the UK, as well as complying with the regulations applicable to the country they are in.

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A Review of the Italian Economy

CFD trading allows you to trade on thousands of financial instruments, such as stocks, market indices, currencies and commodities. The Italian stock market has the Italy 40 Index, which is a mixture of the largest companies in Italy, with the largest having the most effect on the index. The main market sectors represented include banks and utility companies, but the index is taken as an indication of the overall health of the Italian economy. But with a suitable broker, the CFD trader in Italy can also profit from the movements of other indices, such as the FTSE, DAX, Dow, S&P 500. All the majors are represented, and CFDs allow traders to profit even if the value is falling by easily taking a short position.

Other industries that are dear to the Italian trader include auto mobiles and wine, which do not always mix. There is a great deal of agriculture and many family businesses in Italy, but the north is more industrialized, with manufacturing centring on Turin, Milan and Genoa. Family businesses are often taken to the market to seek public investment, generating funds for more growth in exchange for losing private ownership, and this has increased the amount of share ownership in Italy.

Any consideration of the economy of Italy would not be complete without mentioning the fashion industry and, more historically, the shipping industry. Dow Jones assertion that the health of an economy is demonstrated by not only the industrial companies but also the transportation companies, which should be moving in concert with industry, is clearly demonstrated here, with the major city of Genoa being a hub for shipping which has been significant since the Roman era. The fashion sector includes such well-known names as Gucci, Prada, Versace and Armani, and these top designers are generally near Milan.

While not usually considered one of the major trading countries, Italy has been figuring in several brokerages’ futures plans, which points to an increasing need for CFD offerings to satisfy the need.

Keep an eye on this site if you are interested in CFD’s in Italy – www.trade2win.it