CMC Markets is expanding its product portfolio in Germany and Austria.
“CMC Markets, a leading global provider of online retail trading, has expanded its product portfolio with the launch of Knock-Out CFDs (Contract for Difference) in Germany and Austria,” according to a press release announcing the new product.
Knock-out derivatives not only expires if a minimum price isn’t reached but expires if the underlying security exceeds a maximum price; these derivatives are priced much lower than their corresponding knock-in derivatives.
A CFD is a contract which pays the difference between current value of an asset and its value at contract time; unlike options and futures no commodity or stock is delivered.
CFD’s are available in numerous European countries as well as Singapore, Hong Kong, Australia, South Africa, and Canada but not in the United States.
“We are very excited to be able to launch Knock-Out CFDs in Germany and Austria and become the first CFD provider in Germany to do this. This is part of our extensive new product development pipeline.” Peter Cruddas, Chief Executive Officer of CMC Markets, said.
Matt Jamieson, team director for CMC Market’s public relations firm, said the product will allow for a wide variety of trades.
“There are no minimum trade sizes, you can even do fractional trading to 0.1 of a point on the Germany 30. The maximums are dependent on each instrument, for example on the Germany 30 its 75 units per trade to a max of 370 units’ total position size.”
Jamieson said unlike the products which caused a near financial meltdown in February 2015 with the so-called SNB event, the new knock out CFD’s will limit the down side to the strike price.
“Knock-Outs are a limited-risk product, you can’t lose more than your strike price amount and your account can’t go into negative.”
Jamieson said CMC Markets currently has no plans to expand this product beyond Austria and German.
After spending a decade in finance, Michael Volpe has been a freelance investigative journalist since 2009. His work has been published locally in the Chicago Reader, Chicago Crusader, Chicago Heights Patch, and New City. Nationally, Volpe’s work has appeared in a wide variety of publications including the Washingt
on Examiner, the Daily Caller, Crime Magazine, the Southern Christian Leadership Conference Newsletter, and Counter Punch. Volpe has been recognized by whistleblowers as leading the charge in getting their stories out. His first book Prosecutors Gone Wild was published in October 2012, his second book The Definitive Dossier of PTSD in Whistleblowers was published in February 2013 and his third book Bullied to Death was published in August 2015.