Cannabis carries proven and large medical benefits in pain relief and other medical areas. But it wasn’t until the last few years that cannabis legalization and formalization trend started, slowly but surely, spreading across the world. This tectonic development is bringing cannabis from the shadowy street deals to white-collar corporate business and stock markets. Billions of dollars of yearly profit from marijuana sales have been shifting to legal, regulated markets since 2014 when Colorado became the first American state to partially legalize an adult-use. At the moment, 11 states plus the District of Columbia have legalized recreational marijuana, while 33 states have legalized medical weed. On October 17th, 2018 the Canadian federal Cannabis Act came into force, making Canada the second country in the world, after Uruguay, and the first G7 country to formally legalize the cultivation, possession, acquisition, and consumption of cannabis and its by-products, not only in medical but recreational reasons.
Legal medical and recreational marijuana production is growing and developing at a surprisingly fast pace. While many new companies and players are just entering the promising market, the pioneers who took the risks a few years ago, at this point are far gone, operating the multi-digit numbers and selling their shares to investors on the world’s main stock exchanges including NYSE and NASDAQ.
*According to GreenWave Advisors’ Matt Karnes, Arcview Market Research and BDS Analytics.
Accordingly, the market for cannabis stocks is booming and showing every reason to believe it is only the beginning. The chart by “The Motley Fool” Investing portal shows the performance of the main cannabis stocks in 2018.
2019 started with the legalization of hemp production in the US and is believed to beat the last year capitalization in this industry. A lot of high-profile cannabis companies have already shown amazing gains since the beginning of this year, and the potential for growth is increasing as the industry is maturing and gaining the necessary legal framework.
* In 2018. Data Sources: Company Earnings Releases And Regulatory Filings. Chart By The Motley Fool.
So, while some people still find investing in Cannabis stocks questionable or have no idea they even exist, others regret they haven’t invested in it before and think it is too late now. The truth, in our opinion, is different. We think it is just about the time to discover this new promising industry and it’s investing opportunities.
Cannabis Stocks & CFDs
CFD, which stands for Contract For Difference is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of financial instruments such as public stocks. In other words, the investor enters a contractual agreement with the CFD broker to exchange the cash difference in price between the opening and closing prices of the contract. The main difference between CFD trading and share trading is when you trade a CFD, you don’t own the underlying share, but can still benefit if the market moves in your favor.
With share (stocks) trading you enter a contract and actually obtain the legal ownership by purchasing the shares for the full amount owing either using individually-held electronic funds or a margin loan.
- With CFD being a leveraged product, you only need to deposit a small percentage of the full value of the trade in order to open a position, since you don’t actually own the asset or instrument you have chosen to trade. This allows traders to open larger positions than their capital would otherwise allow.
- Typically the cost of a CFD is more or less equal to the same asset share cost. The game-changing difference is that CFD only requires you to put down on average about 5% to 20% of the actual contract value in order to enter a trade. This actually means that on a share CFD with a 5% margin, you can put your hands on twenty times as many shares for the same amount that is needed for buying the stocks.
Many major traders have recently added cannabis stocks CFDs in their offerings, and best10cfdbrokers.com expert team is happy to present you the analysis.