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Screenshot of a breaking news alert e-mail from Q2 2017
CMC Markets New Zealand, part of online trading services provider CMC Markets Group, today launches Contracts for Difference (CFDs) over the New Zealand Stock Exchange (NZX) top 45 shares on its Next Generation platform, beefing up the lineup of the 10,000 CFDs already available to the company’s clients.
The new offering enables clients of CMC Markets to utilise leverage on NZ’s largest listed companies without having to outlay the full cost of capital.
The platform will now give Kiwi traders CFD access to the NZX’s top 45 shares including Fonterra, Fletcher Building, Spark, Meridian, Mighty River, Auckland Airport, Genesis Energy, Fisher & Paykel Healthcare, Contact Energy, and Air New Zealand. The spread will mirror the underlying bid/offer in market at any given time and provide the ability to go long or short on a range of share CFDs. New Zealand shares offer a variety of opportunities for traders, with exposure to NZD fluctuations, dairy industry, China growth, construction, healthcare and retirement, and technology.
Chris Smith, General Manager at CMC Markets New Zealand, said the decision to offer the NZX top 45 was driven by client demand.
“We’re continually adding new tradable instruments to the Next Generation platform and listening to customer feedback. As the leading CFD platform provider in New Zealand, we can see the importance of giving Kiwi traders access to local NZ shares.
“Clients, particularly those focused on equities, want access to all global markets including New Zealand. Currently we have over 10,000 products on the platform after recently adding several thousand new equity CFDs,” Smith said.
CFDs offer the ability to speculate on price movements or hedge existing positions, provide a lower commission cost, compared to buying and selling shares direct, along with the advantage of being able to buy in the market, as well as short sell on some of the New Zealand most active shares, leading to huge benefit and more opportunities.
“CMC Markets assesses all markets and liquidity opportunities to ensure the widest product range for our clients. In this case, we looked at the top 45 NZ companies listed by size and liquidity of shares traded daily to assess the ability to offer a CFD over them.”
“All global markets are interlinked, so traders interested in the NZ share CFDs should be monitoring offshore market performance closely. New Zealand is an exciting market to be involved in as it’s heavily effected by market activity in the US, Asia and Europe on a daily basis plus the addition of many new listed companies”.
Smith recommends looking at the shares that are most frequently traded on the market in terms of volume and value of shares.
“New Zealand currency movements have a big effect on earnings for many import and export companies. Traders need to consider the interest rate outlook in New Zealand, China growth concerns, earnings seasons and New Zealand economic data releases.”
The market-leading technology of the Next Generation platform is optimised for mobile, iPads and web browsers. The platform provides traders with a range of order types, including: limit order, stop entry order, market order, stop loss and take profit orders, guaranteed stop loss orders and trailing stops.