Dax ,fra40 and italy40

[SteveMalta]

Hi I am very new to trading indices, yesterday as Euro ECB where slightly bearish, the named indices, had a price hike, and their values increased. Also noted if a US news is bullish, these stock are bullish, and if US news is bearish, their values depreciates. In my naive opinion it have to be the other way round

Thanks
Steve

 

[hhiusa]

Hi I am very new to trading indices, yesterday as Euro ECB where slightly bearish, the named indices, had a price hike, and their values increased. Also noted if a US news is bullish, these stock are bullish, and if US news is bearish, their values depreciates. In my naive opinion it have to be the other way round

Thanks
Steve

Fra40 = CAC40, Italy 40 = FTSE MIB? An index CFD may not respond the same way that the physical index does. Index CFDs are not essentially real instruments. They are a contract between you and your broker. There is no CAC40 company selling you shares of the CAC40 index. Since this is the case, there are no market pressures involved in trading CFDs. If I place 10,000 contracts for the CAC40, it will not do anything to the index value as it would an equity.

Direct market access (DMA) was created in response to concerns that the price in the market-maker model may not match that of the underlying instrument. A DMA CFD provider guarantees that it will do a physical trade on the underlying market to match each CFD trade on a one-for-one basis. The contract is still between the traders and the CFD provider but through this method it is guaranteed that the CFD price is the same as the underlying price and that they will not be re-quoted.

Titkellem bil-Malti?

 

[SteveMalta]

Fra40 = CAC40, Italy 40 = FTSE MIB? An index CFD may not respond the same way that the physical index does. Index CFDs are not essentially real instruments. They are a contract between you and your broker. There is no CAC40 company selling you shares of the CAC40 index. Since this is the case, there are no market pressures involved in trading CFDs. If I place 10,000 contracts for the CAC40, it will not do anything to the index value as it would an equity.

Direct market access (DMA) was created in response to concerns that the price in the market-maker model may not match that of the underlying instrument. A DMA CFD provider guarantees that it will do a physical trade on the underlying market to match each CFD trade on a one-for-one basis. The contract is still between the traders and the CFD provider but through this method it is guaranteed that the CFD price is the same as the underlying price and that they will not be re-quoted.

Titkellem bil-Malti?

Hi , Thanks a lot for your detailed reply, I am still very new to trading and am still learning the basics, but I have a keen interest in learning.

Iva mela nitkellem bil-Malti, Ghandek xi qraba Maltin ?

Stephen

 

[hhiusa]

Hi , Thanks a lot for your detailed reply, I am still very new to trading and am still learning the basics, but I have a keen interest in learning.

Iva mela nitkellem bil-Malti, Ghandek xi qraba Maltin ?

Stephen

Le. M'għandix xi qraba Maltin. Nitkellem bil-Malti biss ftit. Jiddispjacina ghal xi żbalji.

 

[kalott]

there are no market pressures involved in trading CFDs. If I place 10,000 contracts for the CAC40, it will not do anything to the index value as it would an equity.

maybe with companies like worldspreads?