# Article on CFDs in Fairfax Press



## Alpha_Bet (29 August 2010)

Article on CFD's and CFD providers in The Age Saturday 28/08/10.
The physical paper had more content.
http://www.theage.com.au/business/when-brokers-are-the-enemy-20100827-13w40.html

And the article doesn't even discuss the topic of their synthetic index/FX etc markets. That would be quite a read.


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## robots (29 August 2010)

Hello,

yes great read, the hedging would be nowhere near 90% more like just 10% of positions

are the providers making money on interest only? as you dont really pay brokerage

thankyou
professor robots


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## Alpha_Bet (29 August 2010)

Hi robots,
When trading DMA (Direct Market Access) CFD's on shares your provider profits from brokerage and Finance provided.
If swinging a position the use of margin lending is a worthwhile consideration.


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## robots (31 August 2010)

Hello,

Even DMA is all made up man, they are all creating the market. 

The cfd's offered by the ASX (public listed company) are run through SFE ( a company owned by ASX). With SFE being the "otherside" or counterparty. 

Nothing wrong with all this just highlighting the situation.

Thankyou
robots


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## cutz (31 August 2010)

robots said:


> The cfd's offered by the ASX (public listed company) are run through SFE ( a company owned by ASX). With SFE being the "otherside" or counterparty.




Please check your facts bro,

ASX CFD's are exchange traded, the SFE is the exchange not the counterparty.

But then again I don't trade CFD's so what would I know ?


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## robots (31 August 2010)

Hello,

Please read the documents about the ASX Cfd's. 

SFE can be the counterparty and is the exchange. How's that hey! 

And you probably have no real way of knowing if SFE is the counterparty or not i would imagine.

Thankyou
robots


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## ROE (31 August 2010)

Alpha_Bet said:


> Article on CFD's and CFD providers in The Age Saturday 28/08/10.
> The physical paper had more content.
> http://www.theage.com.au/business/when-brokers-are-the-enemy-20100827-13w40.html
> 
> And the article doesn't even discuss the topic of their synthetic index/FX etc markets. That would be quite a read.




ah easy money, nice glossy brochures show you what you can make 

Alan has $1000 in his account
he bought $20,000 worth of BHP share in  CFDs at $40 a pop

Share gone up $41 a pop and he made $500 minus fee a close to 50% return on investment wooho  

then Alan thought if I can do that with $1000 let rack it up to $2000 and do
$40,000 CFDs trade 

why wouldn't anyone do it, it takes the market maybe 4 years to get to that level of return on investment 

CFDs win or lose the house always win, hello Casino anyone?


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