Australian (ASX) Stock Market Forum

Article on CFDs in Fairfax Press

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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
 
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.
 
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
 
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.
Click to expand...

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 ?
 
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
 
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.
Click to expand...

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

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 :D

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

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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