Newbie question- derivatives for investors?

[#1]

Are derivatives strictly used by traders, or can they also play a role in an investor's portfolio? If I want to, for example, take a bullish view on a company over a 2 to 5 year period, is there a way to gear the investment? If so, what would one use- CFDs, SSF or warrants? Which of these would offer dividends? Would the costs involved be too expensive to make the leveraging worthwhile? What is the procedure to roll over from quarter to quarter?

[swordfish]

CFD's, SSF and warants was never made to be held so long. try share instalments.

[#3]

u cant use warrants cos they decay over time to zero, futures can be held for long periods cos they can be rolled over to a new contract, u pay interest for the money u exposed for so to for cfd, cfd has no roll over costs and dont expire so may be a better option if u want ur levage high enuf to better ur borrowing costs. share installments may be the safest way as no margin calls are required and u wont be neeed to close postions if the price falls , long term it hard to say if the company price gona stay up

[RisseN]

I've also been wondering the same thing. If you've identified a share that's on a long term bull run then are CFD's appropriate? For example, say a share price has increased by 60% in 12 months, with a few ups and downs but predominantly up, would CFD's be an option? (by the way, are there any books on CFD's out there? I've been to the SBK course on CFD's which is good but am always looking to learn more)

[Rams]

Its all about cost of capital and return on borrowed capital.If you are able to borrow at 10% and get a return of 20%, then borrow.But for long term investing I would rather use the derivatives for Hedging...