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					                                         Geelong Advertiser
                                         Monday 12/10/2009                                          Brief: TRENDS
                                         Page: 30
                                         Section: General News
                                         Region: Geelong VIC Circulation: 26,447
                                         Type: Regional
                                         Size: 119.96 sq.cms.
                                         Frequency: MTWTFS-

to battle
CFD market
IGMARKETS Australia will offer Both are vying for leadership                     with an office in Auckland.
New Zealand dollar denominated status in Australia and hold be-                   And until now New Zealand CFD
contracts-for-difference (CFD) tween a 22 and 25 per cent share of               traders have had to trade foreign
when it launches its New Zealand the market, which comprised 32,000              exchanges in their natural currency,
operations on today, throwing down traders at June 2009 according to             with any profit or loss realised in
the gauntlet to arch rival and mon- research firm Investment Trends.             that foreign currency.
opoly provider CMC Markets.                A CFD is an agreement to                "You have to still convert your
   A lack of competition, combined       exchange the difference in value of a profits into New Zealand dollars and
with a lot of traders with advanced      particular asset between the time at your exposure to those markets is in
level foreign exchange (FX) exper-       which a contract is opened and the      the natural currency of each mar-
tise, made the market very attract-      time at which it is closed.             ket," Mr Szabo said.
ive,   IGMarkets' chief executive           The high-risk derivative instru-       IGMarkets will offer New Zealand
Tamas Szabo said.                        ments are typically used by sophis-     dollar denominated CFDs whereby
  "We believe our launch will not        ticated traders taking geared, short-   the profits are realised in the local
only provide more aggressive pric-       term positions in volatile markets.     currency and the exposure to the
ing on CFD markets, it will also offer      They can be used to trade equi-      underlying asset is in the local
traders the assurance that they will     ties, indices, foreign exchange and
                                                                        currency, he said.
never experience re-quotes when          commodities but many traders are "Investors can avoid costs associ-
trading any of our products."       unwilling to repeat the high-risk ated with currency conversions and
  CMC Markets and IGMarkets are activity.                               foreign exchange fluctuations by
global CFD providers in expansion Until today CMC Markets was the locking in their exposure in New
mode and the largest players in the only CFD provider in New Zealand, Zealand dollar terms, thereby easily
Australian CFD market.              moving into the market in April2006 interpreting their profit and loss."

                                    Copyright Agency Limited (CAL) licenced copy                                  Ref: 58252356

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