Seemed to have sneaked through under the radar but an explanation for the high volumes traded these past two weeks can be attributed to the fact that traders can now trade CFD's in PRR. The quick explanation is that people can get set for a cent or two so the institutions/providers need to have the stock in place. What's a CFD? I hear coming through the ether.
CFD providers allow speculators to take long or short positions on CFD positions by hedging their liability under the contracts in the market.
So if a trader was, for example, to submit an order to buy 10,000 CFDs in PRR, the provider would buy 10,000 shares in Telstra as a hedge, and write a CFD at the same price.
In this way, the trader receives the CFD position, in this case long 10,000 PRR CFDs, while the provider has hedged its side of the contract, which is going short on Telstra by buying shares in the market.
But that ties up the issuer's capital - so the issuer will want to be compensated for that. So if the trader wants to hold the position overnight, or over a period of days, the issuer will charge a daily interest rate on the full value of the CFD position. This is known as the financing charge.
Most CFD brokers specify their interest rates as a set number of points over the London Overnight Interbank Rate (Libor).
The minimum contract size is typically one share and the trading hours are generally the same as the underlying exchange.
Hope this helps. Ask your broker, anyone can get in on CFD's.
Also this is important suggest as many as possible listen in.
** As a reminder Dendreon plans to discuss "Updates on U.S.
Commercialization Progress, European Strategy for PROVENGE, and
Pipeline Progress"
DB-BIO DIAL IN INFORMATION:
US: + 1 800-309-8606
International: +1 706-679-0645
Access Code: 35235800
I am willing to predict that Dendreon will announce they are to use the same European manufacturer as Prima Biomed.
Prima uses in Germany the Fraunhofer Institute of Cell Therapies
Who will Dendreon use in Europe?
Watch this space.
Look for my December SP prediction of 25c+ next week when the market gets into full swing.
I'm planning the Local Hero $1 party for sometime in May.
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