CFD's, has anyone looked seriously into these?

Discussion in 'Share Investing Strategies, Theories & Education' started by Qaz, 22nd Aug, 2005.

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  1. Qaz

    Qaz Member

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    Has anyone here looked seriously into contracts for difference as an investment tool?. Would they work in tandem with Navra's blue chip fund?.
     
  2. Tropo

    Tropo Well-Known Member

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    Qaz,
    CFDs are not as easy to trade as it seems.
    There are still problems with CFD trading platforms.
    It takes a long time to fill orders ( 10 or 15 minutes ) in the fast moving market, participants are trading against market makers who are in it to win ( they win when trader loses ),
    brokers are making money from brokerage ( quite expensive sometimes) and participants losses,
    some of them might charge monthly fees if one does not have enough trading volume and some of them don't have guaranteed stop losses,
    if there is an insufficient volume in somebody's order, dealer will fill this order at the higher level - also market depth is deliberately manipulating from time to time, e.t.c.....

    After all - if you choose right dealer you might be quite profitable, but it is still risky.
    :cool:
     
  3. SydneyCider

    SydneyCider Member

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    I just downloaded the trial software from CMC Markets.
    I'm an absolute novice in this, so hopefully can use the trial software to determine whether this type of investment is for me.
     
  4. Tropo

    Tropo Well-Known Member

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    Cider,
    Have fun and G.L !.
    :cool: