iron ore eases, page-20

If you believe stocks even the strongest ones goes up and down over time. LT investors can keep holding because they believe in their LT investment but short term may have some volatility so they can hedge it and make the difference when it falls. Effectively no gain in value but in an ideal situation short cover at the lows to take the short profit and then reverse long additional trade with the 'extra profit' and when it gets back to the hedge level, you effectively have more shares. No capital gains as you have not sold your shares. Not investment advice but one of the ways of using a CFD for hedging or outright trade.