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by Martin on April 4, 2018

Where and how to trade OBX25 CFDs

Contracts for Difference (CFD) is a trading derivative where a trader speculates on the price movements of financial instruments. A CFD is traded between traders and providers. There are many CFD providers in the market some of whom are only interested in defrauding the general public. As such, when you want to trade in CFDs, it is important that you do some research before you jump into the market.

As explained by portal, OBX25, the Oslo based exchange has included 25 of the most liquid companies until now. All the stocks found on this platform can be traded with options and futures. CFDs are some of the most popular derivatives on OBX25.

Norway regulations regarding CFDs

In June 2017, Norwegian financial regulator, Finanstilsynet, published its results on supervisory activities of the CFD brokers in the market. In the recent years, the regulator has been paying close attention to unregulated brokers. According to the regulator, over 80% of 1,000 CFD traders sampled lost their money in the previous 2 years. It noted that the traders lost around 55% of their equity. It is with this information that a CFD trader should check where and how to trade OBX25 CFDs.

How to choose an OBX25 CFD broker

  • Chose a regulated CFD broker – Many of the CFD brokers in Eurozone are registered and regulated by CySEC. However, in Norway, Finanstilsynet has put in place additional regulations which every CFD broker must abide by if such a broker wants to operate in the country. It is, therefore, not sufficient to just look for a brokerage firm which is accepted and licensed in EU but rather one which is recognized by the Norwegian regulator.
  • Trading platforms – Because CFD trading is done online, a broker must present to traders an impeccable trading platform. A broker should have a high-quality platform such as MetaTrader 4.
  • Educational tools on CFD trading – As noted in 2017 by FCA, UK regulator, of the more than 80% traders who lose their money while trading CFDs, many of them don’t understand this instrument properly.

Where to trade OBX25 CFDs

OBX25 index presents one of the most lucrative investment opportunities that many CFD traders can think of. At the same time, Finanstilsynet pays close attention to the brokers registered to offer CFD trading services based on this index. The regulator not only looks at the competence of the provider but also regulates the leverage that such a provider offers. The regulator has a list of all the regulated CFD brokers in Norway.

Full article here:

By Martin

Martin has been a Trader for 5 years now. He has experience in trading Forex, stocks, and cryptocurrencies. Aside from his trading career, he also worked for a UK news outlet as a web article writer and interviewer for 3 years. His insight on news and brokers have been refining for the past 4 years.

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