CFD Trading Loss

[cynic]

I have a recent good example of how CFD providers make the most out of a clients loss. I took a short position on the Wednesday and decided to hold overnight. The following day the indicative price showed me I would be stopped out at open with a higher open price. I notice on my statement the position was closed not at open price but at the exact high of the day. :bad: Hopefully newbies will learn from this.

p.s. I can provide evidence.

May I ask which instrument and whether the provider was quoting an outside of hours market?

 

[Wysiwyg]

May I ask which instrument and whether the provider was quoting an outside of hours market?

RIO FPO and during market hours. Being a CFD you don't get to see the order take place on the exchange but you can see the position close. The transaction price appears on your statement.

 

[cynic]

RIO FPO and during market hours. Being a CFD you don't get to see the order take place on the exchange but you can see the position close. The transaction price appears on your statement.

Thanks for that. I just wanted to be certain that the actual closure occurred during market hours and wasn't a part of the shady "greymarket" shenanigans.

Are you intending to take them to task on this one? I'd be very interested to hear how they respond.

 

[Wysiwyg]

Are you intending to take them to task on this one? I'd be very interested to hear how they respond.

No because they say that was the best price their system closed the trade. The exact high of the day was coincidence. Lesson for new traders is be aware that CFD providers do squeeze every bit out of a trade. I have never had any problems trading using DMA (Direct Market Access). The trade mentioned was using the CFD market maker.

Check my GOLD trade on this forum where the spread opened up 4 dollars when usually fifty cents. Got screenshots to prove it. Posted it here somewhere. Will see if I can find it.

 

[cynic]

No because they say that was the best price the system closed the trade. The exact high of the day was coincidence. Lesson for new traders is be aware that CFD providers do squeeze every bit out of a trade. I have never had any problems trading using DMA (Direct Market Access). The trade mentioned was using the CFD market maker.

What an amazing coincidence!

It just so happened that the client they bet against somehow managed to incur the maximum possible loss on that trade!

 

[Wysiwyg]

I have never had any problems trading using DMA (Direct Market Access).

In saying that I don't see the short sell and covers as standing orders/sales in the market but the longs are visible as standing orders and sales. Being less transparent, they could possibly work the short order sale prices in DMA but I have been getting my prices.