CityTrader
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I agree to think of it in terms of capital employed i.e. in the above example the capital employed is £100 ( all be it only £10 is mine) but the RISK is on £100 - thus if you make £10 it's surely a 10% return not 100%
Colinrichie - the broker doesn't ask for the full £100 as they make more money by lending you capital at base plus 2 or 3 % than they do from executing your trade. I have heard of CFD commissions being offered as low as 8 BP ( 0.08%) ROUND TRIP to sub prime institutions ( 4 guys I know working from a local office as a limited company)
W
Colinrichie - the broker doesn't ask for the full £100 as they make more money by lending you capital at base plus 2 or 3 % than they do from executing your trade. I have heard of CFD commissions being offered as low as 8 BP ( 0.08%) ROUND TRIP to sub prime institutions ( 4 guys I know working from a local office as a limited company)
W