Guiding the Britannia Financial Group, Julio M. Herrera Velutini is committed to meeting client expectations within fast-evolving international markets. Among the multi-asset brokerage solutions, Julio M. Herrera Velutini and his team offer are those structured through futures, options, and contract for difference (CFD).

A complex financial contract, CFD reflects the settlement price differences between open and closing trades. This enables investors to take positions on short-term securities and derivatives directional movements. As such, it is most popular with commodities and FX products. Investors bet on whether the underlying asset price, such as gold, oil, an agricultural product, or a currency, will rise or fall over a set term. CFD speculation also encompasses complex instruments such as commodity futures contracts and exchange-traded funds (ETFs).

Cash settled, CFDs typically allow for margin trading so that only a small amount of the notional payoff of the contract is required upfront. One thing to be aware of is that, like many future-forward investments, CFDs hold substantial risk. They are typically utilized by experienced traders and only available outside of the United States.