The Shield Account delivers the benefits of CFD trading and helps limit your trading risk.
What’s different about the Shield Account?
With the Shield Account you can take a position in CFDs knowing that your risk is limited to the balance in your trading account - unlike other CFD accounts.
You can also choose to place a Shield Stop Loss Order* directly through Marketmaker®, for any or every position you open. So if the market moves against you, your position will close at the level you’ve selected. Guaranteed.
The Shield Account can help to:
Protect your Self Managed Super Fund (SMSF)** portfolio against major market movements
The closer you get to retirement the more important it is to safeguard your wealth. Hedging is a strategy that can involve taking a position in CFDs opposite to that of your share portfolio. This can shield you against the risk of major market movements as gains and losses offset each other. Hedging is often used when one or more of your physical share prices are expected to fall, or when your entire portfolio needs to be protected for a certain period of time.
Diversify concentrated stock portfolios and defer Capital Gains Tax
Many investors are faced with the challenge of holding a concentrated position of a single stock. At some point, you may need to diversify. Taxes can claim a significant part of your holding. Selling CFDs against concentrated stock positions lets you lock-in a sale price without selling the physical stock.
Increase the profitability of your long-term investment portfolio with leverage
We all want to make the most of our money. Trading CFDs on leverage gives you greater market exposure than your small initial outlay - your unused capital can then be available for alternative trades. In this way you can diversify or increase your portfolio, and subsequently your profit potential. All the time limiting your exposure to the balance of your Shield CFD account.
Re-weight your portfolio
In order to maintain a diversified portfolio, you may need to regularly review and re-weight your investments. Re-weighting involves taking your investment portfolio back to its original distribution. Selling CFDs on stocks that have risen can reduce the volatility of your returns. It can also reduce the temptation to hold onto your best performing asset classes without taking profits.
