Exchange traded CFD?

Question

What is an exchange traded CFD?

Answer 1

Looks like a junk bond fund. Pretty expensive at 3.37% as well.

The primary objective of the Fund is to seek high current income. The Fund will also seek capital growth, to the extent consistent with its primary objective of seeking high current income. The Fund may invest at least 65% of its total assets in high yield bonds, debentures, notes, corporate loans, convertible debentures, and other debt instruments. The fund invests up to 30% of its total assets in the securities, including high yield obligations, of issuers domicile outside the United States.

Answer 2

CFD = Contract for Difference.  It's a derivative of the underlying asset inasmuch that you never actually buy it - you simply agree to pay/receive the difference between the strike price and the closing price at the end of the contract.

Exchange Traded means that it is traded on a financial or mercantile exchange - such as LIFFE, NYMEX, ICE etc.

The payments you make are to cover the loss you may make on the trade.  You pay an amount at the start (initial margin) and you will be asked for other payments if you go out of the money (variation margin).

Answer 3

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