stevespray
Experienced member
- Messages
- 1,289
- Likes
- 156
Sounds interesting. Question is.... Will they be leveraged instruments? If so who will underwrite the risk and how will they calculate cost of carry etc?
Steve.
Sounds interesting. Question is.... Will they be leveraged instruments? If so who will underwrite the risk and how will they calculate cost of carry etc?
Steve.
00007 wrote:
Are listed CFDs same as exchange traded CFDs and does anyone have comments vs standard CFDs? This thread seemed to dry up some while ago - can anyone update please?
---------------------------------------------------------------------------------------
0007 well the answer is a big NO.. STEP AWAY from CFDs unless you are
a. happy in the knowledge that you will most likely be playing AGAINST the book /broker.. not necessarily the market.
2. You accept that your business in trading is at worst SWING and best positional trading over longer time frames
Forget CFDs if you are trading intra day or are looking to spread trade in any sort of way because your position will not necessarily be hedged properly as the price being offered is only a proprietary price between you and the broker and they will be able to manipulate the price they offer you on a WHIM!!!!! it will have no transfer value should the company go bust... so why the devil would you really want to trade CFDs outside an exchange?.. beats me.. a lot of people need to smell the coffee and wake up and walk away from such nonsense especially because they are new..even IB is better
however this is not the case with exchange traded CFDs which will function in almost the same waty as a Futures contract when all is said and done but you wont be subject to the vagaries and opaqueness offered and usually experienced by a charlatan of broker who will not give you an honest and directly complete answer to the question "why is your price offered not the same as the Market?"
Are listed CFDs same as exchange traded CFDs and does anyone have comments vs standard CFDs? This thread seemed to dry up some while ago - can anyone update please?
---------------------------------------------------------------------------------------
0007 well the answer is a big NO.. STEP AWAY from CFDs unless you are
a. happy in the knowledge that you will most likely be playing AGAINST the book /broker.. not necessarily the market.
2. You accept that your business in trading is at worst SWING and best positional trading over longer time frames
Forget CFDs if you are trading intra day or are looking to spread trade in any sort of way because your position will not necessarily be hedged properly as the price being offered is only a proprietary price between you and the broker and they will be able to manipulate the price they offer you on a WHIM!!!!! it will have no transfer value should the company go bust... so why the devil would you really want to trade CFDs outside an exchange?.. beats me.. a lot of people need to smell the coffee and wake up and walk away from such nonsense especially because they are new..even IB is better
however this is not the case with exchange traded CFDs which will function in almost the same waty as a Futures contract when all is said and done but you wont be subject to the vagaries and opaqueness offered and usually experienced by a charlatan of broker who will not give you an honest and directly complete answer to the question "why is your price offered not the same as the Market?"
0007
Senior member
- Messages
- 2,377
- Likes
- 664
Paulds11,
Thanks for prompt reply - your comments appreciated. One of the possible advantages of SB / CFD is the ability to go short - but the drawbacks you point out raise some dificulties.
So what do you think is the best way to go short on FTSE350 stocks over approx 10 week period?
Thanks for prompt reply - your comments appreciated. One of the possible advantages of SB / CFD is the ability to go short - but the drawbacks you point out raise some dificulties.
So what do you think is the best way to go short on FTSE350 stocks over approx 10 week period?
If you become a good CFD trader you should not worry too much about what the brokers do with your open positions. And to become a professional CFD trader will take years and years of hard work and market watching. Once you've become a pro CFD trader you will find that you can even make money by placing your trades with the likes of CMC as well.
Regards,
TraderRod
The CFD Traders
Regards,
TraderRod
The CFD Traders
