CMC Markets Connect's CFDs Offer Quick Route to Managing Equity Market Exposure

In the wake of increasingly volatile equity prices, CMC Markets Connect is reminding clients that its range of single stock and index CFDs provides a convenient route to managing portfolio exposures on a global basis. With over 10,000 single stock CFDs on offer, along with indices and thematic share baskets, the Contracts for Difference provides retail and institutional clients alike with a flexible way of increasing exposure on a long or short basis.

Biyi Cheng, Head of Greater China for CMC Markets, commented: "The CFD was initially launched as an institutional product, but its flexibility and associated low trading costs saw wide adaptation by the retail community. As institutions look for more flexibility in constructing portfolios, the instrument is now seeing something of a renaissance."

The Chinese regulatory crackdown in recent weeks has wiped billions off sectors such as technology, property and education. This has in turn provided a clear illustration of the flexibility of the CFD product set offered by CMC Markets, which includes individual China H-Shares, the Hong Kong China H-Share index, along with the China Tech and Hong Kong Large-cap RRG Momentum+ thematic share baskets. 

Biyi Cheng, added: "The flexibility of a CFD truly comes into its own in fringe markets, where it might not be so straightforward to access the underlying asset. Volatility in China has been a classic example of this, but we have also seen spikes in price action on products as varied as natural gas, coffee and lumber over the last few months. Again, those who are connected to a CFD provider with a comprehensive tradable universe have been very well placed to manage their risk through these volatile spells."