The Herald
Business Reporter
The Zimbabwe Stock Exchange (ZSE) has said it is working on the framework of Contract for Difference (CFD) to govern the trading of foreign currency on the Victoria Falls Stock Exchange (VFEX).
A CFD is a financial contract that pays the differences in the settlement price between the opening and closing trades. CFDs essentially allow investors to trade the direction of securities over the very short term and are especially popular in forex and commodities products.
In recent years, forex trading has grown in popularity across the African continent, which has become an exciting new hub of trading markets for both international forex brokers as well as African traders seeking to find new ways to earn income.
However, ZSE chief executive Justin Bgoni said forex trading in Zimbabwe had been like a jungle market system with people losing their hard-earned money to unscrupulous foreign brokers.
“We will shortly be launching a platform to allow safe and secure CFDs or forex trading in Zimbabwe on VFEX,” he said in an interview.
He added that VFEX was always exploring initiatives that can deepen the capital markets and add value to investors. Mr Bgoni said research on CFDs was conducted in consultation with various stakeholders familiar with this type of product.
He said that forex trading had become more popular in Zimbabwe, but unfortunately had been hijacked by unscrupulous brokers who have duped people of their money.
The Reserve Bank of…
