You can no longer buy commodities at Merrill Lynch. My guess is many analysts and even executives are too young to know how a hot commodities market can be. They will soon.
Contracts for Difference (CFDs) are agreements to exchange the difference in value of a particular security, from when you enter into the contract to when you close it, without the requirement to own the physical asset. CFDs are traded on margin, so you can take a position without having to pay the full value of the transaction. The margin requirements are commonly just 5% for major shares. CFDs benefit from low commission rates, low margin and zero stamp duty and the ability to go short as well as long – thus profiting from falling as well as rising markets.
GAM provides an execution-only CFD service to our clients, however, we can provide clients with practical advice on risk and money management.