CFDs and their many attractions

THE global capital markets have never been more intriguing, with central banks dictating fund flow and effectively using markets to drive economies through inflation expectations.

However, despite 25 central banks around the world cutting interest rates this year, and the European and Japanese central banks expanding their balance sheets through asset purchases and the expansion of base money, inflation expectations have not yet responded. This is a huge concern for central banks and will be for financial markets if we don't see improvement.

The question is: how long do the markets wait before losing faith that central banks can achieve their mandates through monetary easing? For now, though, rising inflation is really only seen at an asset level, which is throwing up huge opportunities for traders and investors alike. Taking advantage of these opportunities has never been easier with such a broad array of financial products which retail participants can use to express their view or trading strategy. These range from exchange-traded funds (ETFs), fixed income, futures, derivatives, warrants and options, as well the more commonly used equity markets.