What are the BASKET
BASKETS are baskets of stocks from the same sector or industry packaged in a Contract for Difference (CFD). The broker Kimura Trading offers the investor basket CFDs in which the underlying shares are all equal, even in the case of companies with very different capitalizations. This feature allows the investor both to diversify the risk on the different stocks that make up the basket, and to exploit the potential of smaller stocks, weighing them correctly against more mature stocks.:
Why Invest Using BASKETS
The BASKETS of kimuratrading.com are structured in small contracts, usually starting from 100 Euro, and can be purchased through the Kimura cTrader platform in single or multiple contracts. This allows the trader-investor to allocate even a small amount of capital to several stocks at the same time, which makes diversification possible even for those who do not have a large amount of money to invest. On the contrary, wanting to replicate a CFD basket by investing a few hundred euros on several individual stocks would make the investment inefficient due to the commission costs.
The difference between BASKETs, ETFs the purchase of the underlying shares.
The concept of grouping several shares into one financial product is the same for BASKETs and ETFs. The difference is in the number of stocks present in BASKETs, which is much smaller than in an ETF. ETFs, generally, are passively managed funds that replicate hundreds of stocks within them. They often aim to replicate broad and diversified indices or baskets. On the contrary, a BASKET, by allocating the investment on few stocks, usually less than 10, allows to invest vertically on a sector/industry. BASKETs represent an efficient solution for investing in specific stocks or sectors.
|Kimura Trading Basket CFD||ETF||Single Shares|
|Product Type||Contract by Diference||Investment Fund. (Emission Traded Fund)||Share|
|Product Purpose||Invest in a small group of stocks.||Investing in a large basket of stocks.||Invest in a specific company.|
|Diversification||Inherent in the product||Inherent in the product||No|
|Cost of Securities Deposit||No||Yes||Yes|
|Ability to use leverage||Yes||No||No|
|Cost of funding||Yes||No||No|
|Possibility of short selling||Yes||No||No|
Trading up and down on BASKET.
Kimura Trading's BASKETs are a particular class of CFDs that have multiple stocks as their underlying. Given the low funding cost, they are suitable for both investment and short/medium term vertical trading on a few stocks, either up or down.
The use of financial leverage with BASKETING.
Essendo dei CFDs, è possibile negoziare i BASKET utilizzando la leva finanziaria. Con un margine richiesto del 20% del valore nominale, come per i titoli sottostanti, sui BASKET è possibile sfruttare una leva massima di 1 a 5. Questo significa che è possibile investire su un BASKET del valore di 100 USD, impiegando solo un margine di 20 USD.
KimuraTrading offers numerous Baskets of equity securities
Kimura Trading has structured and offers numerous BASKETs, through which you can invest in the MegaTrends that are reshaping the world economy.