Saxo Bank top traded CFDs

Dubai/ Emirates Business

Saxo Bank, the online multi-asset trading and investment specialist, revealed that the most traded equity CFDs (Contracts for Difference) in the MENA region are focused on the US stock market and US tech companies.
Two of the top three most traded CFD equity indexes by Saxo clients in the MENA region since January 1, 2015 are the Dow Jones Industrial Average and the S&P 500, with the third being the German DAX. This trend in MENA also reflects the global Saxo Bank client preference for the US stock market, which is currently the best performing equity market in the developed world.
An analysis of the stock market evolution in USD since January 2008 shows the US stock market has increased by approximately 78% whereas most of the European stock markets are down over the same period.
Globally, the Germany 30 index is overall the most traded CFD equity index by Saxo Bank clients based on the Net Traded Volume since January 1, 2015. However, three of the top five most traded CFD equity indexes in the past year are from US stock markets, respectively US SPX500, US 30 Wall Street and US Tech 100 NAS.
Additionally, the top five most traded single stock CFDs globally since January 1, 2015 are leading US tech companies Oracle Corp, Apple Inc, Facebook Inc, Amazon.com Inc and Alphabet Inc – A share. The information on top traded CFDs is based on internal research by Saxo Bank and is indicative.
CFDs are derivative trading instruments which allow investment in a vast range of securities and asset classes, such as shares, equity indices and commodities, but without having to purchase or own the underlying asset. They are favoured by investors who want to maximise the impact of their cash available, for those who want the flexibility to take and liquidate a position at short notice to take advantage of alternative opportunities and transfer resources elsewhere; and for those who are indifferent to owning the investment itself but simply want to profit from its performance.

The purchase of a CFD is an agreement to settle in cash the difference between an opening price and a closing price of a particular asset and the investor has taken a position on. The CFD then tracks that asset’s price. The investor takes the position based on whether they think the asset will go up or down in value, without owning the underlying asset. CFD investors can also benefit from a falling market by selling a CFD that they believe will fall in price and then aim to buy it back alter for less money and make a profit. But if the asset rises in value, the investor also risks losing money.

Christopher Dembik, says: “The excellent performance of the US equity market can be partly explained by the fact that the USD surplus from emerging countries are transferred to the US market in periods of economic uncertainty. Therefore, even if the economic crisis began in the USA, the negative impact on the US stock market is temporary. The US market perfectly plays its role as a safe haven.”
Meanwhile the interest in single stock CFDs for tech companies looks like a trend that shows no sign of diminishing. Investors are turning to tech companies because they have shown to provide consistently good returns.