Contracts for Dummies? The Performance of Investors in Contracts for Difference
نویسندگان
چکیده
Investors widely use contracts for difference (CFDs) to leverage and short sell underlying financial assets. We investigate the after cost performance of investors in Australian Securities Exchange listed share CFDs, and find that market order CFD trades earn small positive returns at the daily horizon, with negative returns reported for one month to one year horizons due to financing costs. Market orders also net sell positions, which suggests that investors use CFDs for shorting opportunities. Overall, we find that liquidity demanders in CFDs obtain favourable execution, which is inconsistent with the view that CFDs are used by naive individuals.
منابع مشابه
An Analysis of Risk as Perceived by the Investor in Iranian Oil Service Contracts and its Impact on Feasibility of Investing in Upstream Activities
Since the national wealth of oil-rich countries including Iran is connected to petroleum resources, these countries attempt to make their fiscal regimes and licensing system more attractive to international oil companies and investors. On the oil company side risks and uncertainties in oil and gas exploration and production are important challenges when deciding between different projects. This...
متن کاملDeveloping a framework for studying and evaluating the types of psychological contracts in the context of relationship marketing
Nowadays, belief in the criteria and conditions of interactions with an organization to promote customer relationships is somehow tied to the organizational performance, and its final goal is of great importance. In the literature on organizational behavior, this belief is defined as the “psychological contract”. The intention of this mixed research is to identify and discover the contents of p...
متن کاملOptimisation of Healthcare Contracts: Tensions Between Standardisation and Innovation; Comment on “Competition in Healthcare: Good, Bad or Ugly?”
An important determinant of health system performance is contracting. Providers often respond to financial incentives, despite the ethical underpinnings of medicine, and payers can craft contracts to influence performance. Yet contracting is highly imperfect in both single-payer and multi-payer health systems. Arguably, in a competitive, multi-payer environment, contractual innovation may occur...
متن کاملAmerican Option Pricing of Future Contracts in an Effort to Investigate Trading Strategies; Evidence from North Sea Oil Exchange
In this paper, Black Scholes’s pricing model was developed to study American option on future contracts of Brent oil. The practical tests of the model show that market priced option contracts as future contracts less than what model did, which mostly represent option contracts with price rather than without price. Moreover, it suggests call option rather than put option. Using t hypothesis test...
متن کاملModelling and Experimental Testing of Asymmetric Information Problems in Lease and Hire Contracts (Based on Contract Theory)
This article aims to study lease and hiring contract in the Iranian-Islamic setting and analyze the asymmetric information problem in these contracts. For doing this, we study the characteristics of lease and hiring contracts in Iran (real world experimental characteristics that recognized in other studies), using library method, then we mathematically model different aspects of asymmetric info...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
عنوان ژورنال:
دوره شماره
صفحات -
تاریخ انتشار 2013