Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 2: Principles of Financial Planning and Cash Flow in Financial Trading

SECTION 1 – UNDERSTANDING FINANCIAL MANAGEMENT IN FINANCIAL TRADING

6 Topics

INTRODUCTION

TRADING ACCOUNT

SECTION 2 – FINANCIAL TARGETS IN FINANCIAL TRADING

8 Topics

INTRODUCTION

SELF EMPLOYED TRADERS & DAY TRADERS

STOPPING OUT FOR THE DAY

FINANCIAL INSTITUTIONS

INVESTMENT PERFORMANCE & RISK

EXCESS RETURN

SHARPE RATIO

THE JENSON MEASURE

SECTION 3 – BUSINESS TAX AND VAT ON FINANCIAL TRADING

4 Topics

INTRODUCTION

STAMP DUTY

FINANCIAL TRANSACTION TAX (FTT)

FINANCIAL TRANSACTION TAX TYPES

Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) - UNIT 3: Understanding financial trading techniques

SECTION 1 – UNDERSTANDING HOW TO ANALYSE THE MARKET AND TRADING PATTERNS

50 Topics

1 of 3

SECTION 2 – UNDERSTAND HOW TO TRADE FINANCIAL PRODUCTS

40 Topics

TYPES OF SPREADS – CALENDAR SPREADS

TYPES OF SPREADS – INTERCOMMODITY SPREADS

TYPES OF SPREADS – INTRA-COMMODITY SPREAD

TYPES OF SPREADS – BUTTERFLY SPREADS

FUTURES BUTTERFLY SPREAD EXAMPLE

ECONOMIC INDICATORS KEY TO TRADING

READING ECONOMIC INDICATORS INTRODUCTION

WHICH INDICATORS MATTER MOST?

RELEVANCE, TIMELINESS AND RELIABILITY

BUSINESS CYCLE PHASE

STRUCTURAL CHANGE AND POLICY REACTION

A NOTE ON SEASONAL ADJUSTMENT

ECONOMIC ACTIVITY INDICATORS – HOW DO THEY TALLY?

GDP – THE CORE CONCEPT

SEVERAL FACES TO THE SAME COIN

EXPENDITURE SIDE IN THE US, BUT OUTPUT SIDE IN EUROPE

1 of 2

LEVEL 3 – UNIT 2 FINAL ASSESSMENT

LEVEL 3 – UNIT 1 FINAL ASSESSMENT

LEVEL 3 – UNIT 3 FINAL ASSESSMENT

Previous Topic

Next Topic

THE MAIN DIFFERENCE BETWEEN SPREAD BETTING AND CFDS

Skillsfirst Level 3 Certificate in Introduction to Financial Trading (RQF) SECTION 2 – UNDERSTAND THE OPERATION OF FINANCIAL MARKETS THE MAIN DIFFERENCE BETWEEN SPREAD BETTING AND CFDS

Spread-bets usually have a fixed timescale whereas CFDs do not. “Long” CFD positions attract daily finance charges and “short” CFD positions earn interest. But no time-related charge or benefit applies to spread-betting.

Capital Gains Tax applies to gains made from CFD trading, but not to gains made from spread-betting (although losses on spread-bets cannot be used to offset against gains elsewhere).

Consumers rarely pay commission when placing spread-bets – the business’s charges tend to be included in the spread. But quoted prices of CFDs usually match the underlying market and the business then charges commission for carrying out the trade.

CFDs tend to be linked to “real” assets such as shares, commodities and currencies. But spread-betting takes place on markets made across a wider range of activities.

Previous Topic

Back to Lesson

Next Topic