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CFD trading on the foreign exchange market
Krtička, Pavel ; Málek, Jiří (advisor) ; Radová, Jarmila (referee)
This bachelor thesis is concerned with the issue of CFDs, and it particularly focuses on those contracts that are traded in the international foreign exchange market. The introductory part of the thesis characterizes this type of market in detail, both in regard to financial instruments and in regard to its participants and the particular exchange currency pairs. The next part of the thesis is devoted to the actual CFDs, especially their characteristic features, types, advantages, disadvantages, and to comparing them with selected financial instruments. The part specifies the elementary types of trade orders that we, as a CFD trader, can encounter. The final part of the thesis is concerned with an example of entering into a CFD for a particular currency pair as viewed by an individual investor. The primary goal of the thesis is therefore to analyze and evaluate this type of financial derivative; its secondary goal is then to instill a certain idea of how such a contract can be used for real trade in the international foreign exchange market.
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