China and Finland hold the ‘trade secret’ for CFD experts


Australia’s top CFD traders looked to China and Finland for the best returns over the last week according to data released today from CMC Markets, Australia’s leading provider of trading services for frequent traders.

An analysis of CMC Market’s most profitable clients measured by dollar value, found that one of the most popular CFD instrument traded over the last week was the CHINA50, a share index tracking the performance of some of the largest “A” share companies traded in China.  These are companies registered in mainland China whose stocks are traded on the Shanghai and Shenzhen stock exchanges.

CMC Market’s top CFD traders also looked to Finnish company, Nokia.  Shares in Nokia have more than doubled in price from very depressed levels in mid-July as investors embraced its smartphone link up with Microsoft and many of the savvy investors have seen real upside for the company in emerging markets given its lower cost smartphone offering.

The second most profitable company CFD was Shun Tak Holdings, a Hong Kong based property investor and developer with interests in both Hong Kong and Macau. It also has interests in cleaning services, transport and travel agencies. Shun Tak’s shares rose strongly last week as part of a broad based rally in China’s market and following broker upgrades based on an improved outlook for Macau.

Ric Spooner, Chief Market Analyst, CMC Markets, commented: “Our most successful CFD traders are confident and experienced enough to look beyond the mainstream trading instruments to those offering more international exposure.”

CFD Instruments traders by CMC’s most profitable clients over the last week include:

Top 10 traded CFDs (by profitability)

1.       AUD: USD

2.       China A50

3.       Nokia

4.       US SPX 500 ( S&P 500)

5.       Gold

6.       US 30 (Dow Jones Index)

7.       UK 100 (FTSE 100)

8.       EUR: USD

9.       German 30 (DAX)

10.   Shun Tak Holdings

CMC Market’s top traders also looked to the AUD:USD currency pair to produce the best returns from the available CFD currency instruments. The currency pairs that yielded the least profit for the top traders was the USD:JPY.

Ric continued: “Major currencies and leading share indices are traditionally among the most popular trading instruments among our clients. CFDs like the AUD:USD, EUR:USD, US 30 and Gold are highly liquid markets with tight spreads and trade either around the clock or with only a small break which makes them favoured instruments for short term traders.

“The German CFD (based on the DAX index) has grown steadily in popularity amongst our Australian client base. European economies have been an increasing source of focus for international economies since concerns over a possible break-up of the Eurozone began to mount in 2010. Opening at 6pm Australian time and being active during the Australian evening, makes the German and index particularly suitable for part time traders working during the day.”

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