New tool for the Russian stock market

A. Kuznetsov

Can I buy a large amount of shares of RAO UES, paid a commission of 2 rubles? At first glance, it looks fantastic. Recently, fantasy becomes a reality - in Russia has finally been introduced advanced Western technology in the areas of finance, such as Contracts for Difference (CFD) for Russian equities.

What is a CFD? Contracts for Difference (CFD - contract for difference (ang.)) - a new synthetic financial instruments [1], based on shares of domestic companies (RAO UES, Lukoil, Rostelecom and others), as well as indices of RTS, MICEX, which may deal with the use of leverage. Profit on an individual instrument is dependent on fluctuations in the value of the asset underlying it. In the CFD on Russian stocks and indices reflected the full benefits of trade in shares and indices, without the need of real ownership of these assets and related costs. These advantages are:

- Low fixed commission per transaction (on 2 rubles)
- Great for the stock market leverage (1:5)
- Low initial deposit (1000 rub.) - A consequence of the large credit leverage
- Lack of additional costs and fees (with the depository services, merchant terminal Exchange Commission, etc.)
- The possibility of trading in small lots

It is important to note that the CFD on Russian stocks and indices are ideal for active intraday transactions with large amounts because of low fixed commission and the lack of additional costs. Low fixed commission - a consequence of over-the nature of CFD on Russian shares, although the quotes CFD to mirror the movement of all Russian shares on major stock exchanges (MICEX and RTS), and active traders do not feel any inconvenience during the transition from operations in the stock market operations with the Russian CFD.

The emergence of new, affordable tool will help break the monopoly of the Russian stock market brokers. What is this monopoly? For example, you are an active seller and methods of those. analysis revealed that the shares "Norilsk nickel" should be just about to fall in price soon. You urgently call your stockbroker and ask for a "short selling" shares "Norilsk nickel" in the hope to earn in the fall. What you broker says: "Sorry, these shares have not given speculators for short selling." Do you know why? Yes, just your broker keeps a large package of shares and either plays himself on them "in the short or they have tacitly agreed with the company not to allow speculators" to reduce the capitalization of the company. " Or here is another example. In late September, early October 2004 the market shares of Mosenergo experienced explosive growth in prices. Stocks Mosenerngo "a few days went up by nearly 170% to 3.5 rubles. to 9.5. Could a simple exchange for a player this week to earn 170% using the standard brokerage services? Can. Theoretically. A little might. When asked the broker, "Why not open a long position on shares Mosenergo could hear and talk about light and about the lack of equity in the market. It was impossible to hear only the truth. But the truth is that there is a brokerage company quietly graduation clients - at those who understand and those who are worse. If you have less money to the brokerage account, than that of any Western investment houses - the client of your broker - and then your application will perform worse, and the shares at the right time for you will not.

Now talk about the costs related to the sale of shares. It's no secret that for active traders in the amount of brokerage commissions, as well as numerous related charges is a significant problem and the problem of eating up the hard-earned profits. Russian brokers "proud" low commissions, and argue that "the following have no place." One of the brokers is just 400 rubles, with circulation commission of not more than 400,000 rubles. per month, while another suggested that 0.01% of daily turnover. It seems to be true - where much lower? But while expressing an unprecedented low prices, stock brokers shift part of the commission for hidden fees: the trading platform, the key to the electronic signature platform for depositary services, do not forget about the exchange commission and VAT. Want to urgently transfer money from your trading account? Pay. Want shares of Gazprom? Since you have taken an additional different needs. Particularly high rates are Russian brokers for the use of the margin (leverage).

All of the above problems can be avoided by going to trade CFD on Russian shares in the company "Kalita-Finans". CFD - a very efficient tool (with a fixed commission of 2 rubles), by its nature designed for active speculation. You can verify this by opening a free demo account and testing capabilities of Internet-trading with the trading platform iTrader. All CFD on Russian stocks and indices in the company Kalita-Finance is (in contrast to the Russian shares from domestic brokers) margin instruments, ie with them always, regardless of the situation on the Russian stock market, you can perform a transaction as a purchase or for sale (open short position). For you to operate a single trading account and in-between sessions on the Russian stock market, you can trade currencies on the Forex market, or contracts for difference to American or European stock indexes.