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Trading CFDs

Discussion in 'Shares' started by voigtstr, 22nd Jul, 2012.

  1. voigtstr

    voigtstr Well-Known Member

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    Hi guys,
    I'm looking to dip my toe in the water regarding CFDs. A friend has had some success with IGMarkets, however my research (lets call it google) indicates that the house will bet against you even on small trades, they look at where likely stops would be based on resistance levels and drive the price there to trigger peoples stops and then the price bounces back again. (thats what one blog said anyway). Is there much truth in this? What other platforms are users using to access forex, forex minis and CFDs derived from equities. What are the pros amongst us using for their platform, and do those platforms require large deposits (greater than 5k) before you can place small trades?

    wdongli: please dont respond to this thread.
     
  2. Tropo

    Tropo Well-Known Member

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    Your stop-loss becomes a known target for CFDs/FX operators and will be triggered if possible to take your money, however small your trade.
    This practice definitely occurs, and is also applied to take-profit/limit orders.
    You may try: Oanda (mini), IG market, FXCM...
    I don't trade CFDs.
    What Forex Broker should I use?
     
  3. voigtstr

    voigtstr Well-Known Member

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    That trendtrimmer stuff seems to be all about automated trading. I thought you were more hands on Tropo? Or is that link more to point us at http://www.traderschoiceglobal.com/broker-video/topbrokers.php? (PM me if you have a recommendation but didnt want to be seen as "advertising" :)
     
    Last edited by a moderator: 23rd Jul, 2012
  4. Tropo

    Tropo Well-Known Member

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    This link is an idea only. I rather do not recommend a broker.
    What works for me may not work for you, and vice versa.
    I heard that Oanda is a good platform to start with, if you consider mini FX.
    I am more hands on than you think I am. Also in some instances I am using fully mechanical system.
    As I said many times before, position size, stop loss/profit, risk/money management etc...is of paramount importance in this game.
    Take some time before you put your money on the line.
    Happy trading!! ;)
     
  5. Jason Rogers

    Jason Rogers New Member

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    FXCM Australia introduces lower spreads

    Hi Tropo,

    You may like to know that FXCM Australia is now offering lower spreads through our new dealing desk execution option. Here’s a list of the new spreads for twelve of FXCM’s most popularly traded currency pairs.

    [​IMG]

    While FXCM believes that NDD execution provides the best overall trading experience, we also offer dealing desk execution as an option for traders whose primary concern is low spreads. Traders can now choose which option best fits their needs.

    There is a table on our website that goes into more detail about the trading restrictions on the dealing desk option such as maximum lot size, maximum account balance, etc. www.fxcm.au/execution-types.jsp, and let me know if you have any questions.

    Jason
     
  6. Tropo

    Tropo Well-Known Member

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    Thanks Jason.
    I know that.
     
  7. Billv

    Billv Getting there

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    voigtstr

    I've done CFD trading but now I'm only trading Forex with a broker called pepperstone.

    Trading isn't as easy as the spruikers are telling you and you are more likely to lose your money but the potential to make money is there and this is what attracts people.

    What attracted me is the ability to trade from anywhere any time plus the high gearing brokers offer so you don't need a huge starting capital to control a sizeable trade. However there is no free lunch, it will be hard work, you'll lose heaps of money and you are likely to be very stressed in the beginning.

    btw, I think American brokers don't allow hedging and have a so called first in first out (FIFO) rule so ask the broker you choose if he has these restrictions.
     
  8. Billv

    Billv Getting there

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    Also, the info that the house is betting against you is true so u need to know what you are doing and even then they'll run your stops when they can and will slip your trades (delaying execution) reducing any profit
     
    Last edited by a moderator: 3rd Aug, 2012
  9. Jason Rogers

    Jason Rogers New Member

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    By the way, the low spreads also apply to FXCM’s automated trading platforms including MT4 and NinjaTrader.