CFDs anyone?

[happytrader]

Re: CFD's anyone?

I notice it is a feature with some CFD brokers to provide an automated stop loss. I was wondering if anyone uses it and how they have found them.

Thanks in advance.

Cheers
Happytrader

 

[agreen]

Re: CFD's anyone?

Bobby, its $5 per contract! im only going to trade.


Max i can lose is $60 before my position is stopped out. My system allows me to have higher win/loss ratio with a nice risk/reward ratio (since im only doing a few trades per month).

So if worst comes to worse i lose all 4 trades for whatever reason it hasnt even effected my total capital not even a touch.

i appreciated the concern but i know the feeling of being over exposed before and losing lots of capital.

Anywayz ill keep you's posted

Cheera

Hi Ageo,
Just some quick info about IG Markets for you (I have been trading with them for the past four months, mainly the Aus Stock Index $5 contract which is their ASX200).
With a limited risk account the spread will be 6 points while the market is open and 8 points while it is closed.
The minimum you can set your stop loss is 15 points away from the current market level ($75 for 1 $5 contract).
The spread is added to the market price to determine your opening price.
So if the market is open and at 5,000 (assuming you buy) your open will be 5006 and your stop will be at 4991 (15pt stop loss).
During times when the ASX is closed the Index will still move around and as others have said is very volatile overnight (I guess based on World market movements) and just before the ASX opens.
The Index trades from 9.50am to 4.30pm (6 point spread) then closes & reopens at 5.10pm & I've found that it closes again at 7am (although I've heard that IG say 8am)

Cheers,
agreen.

 

[Ageo]

Re: CFD's anyone?

Hi Agreen, thanks for the info -

yeh i was just playing around with strategies (along with my system) to see what suits me. I went to a CMC seminar today and im going to open an acount with them simply because the platform they use is better (many more features) and some margins are lower which allows more flexibility.

Also i have read both PDS's and they are pretty much similar. The spreads on CMC are tigher aswell in a few indexes and other markets.



Adrian

 

[alankew]

Re: CFD's anyone?

Advice again please.I am looking at trading CFDs in some of the volatile but safe stocks(BHP etc)Is my inderstanding correct that i can buy say 10000BHP at a price of for example $28.50 and pay only 5% of value of trade plus commission.My query is if i want to hold for a few days or so(or until I at least make a profit),do i just issue 1 buy order until time is right to sell or does each trade have to be closed on same day

 

[Ageo]

Re: CFD's anyone?

Advice again please.I am looking at trading CFDs in some of the volatile but safe stocks(BHP etc)Is my inderstanding correct that i can buy say 10000BHP at a price of for example $28.50 and pay only 5% of value of trade plus commission.My query is if i want to hold for a few days or so(or until I at least make a profit),do i just issue 1 buy order until time is right to sell or does each trade have to be closed on same day

Your understanding is correct for the margins.

As for size of order basically if you buy 10000 shares today, and next week you want to sell - you put in a sell order for 10000.

Does this answer your question?

 

[alankew]

Re: CFD's anyone?

Think so looks like i was getting mixed up with spreadbetting!

 

[Ageo]

Re: CFD's anyone?

Think so looks like i was getting mixed up with spreadbetting!

Alen think of the spread as a brokerage fee but implemented into the trade.

Basically if the spread is 3 points then think of (its going to cost me 3 points, so if i make 10 points just minus 3 and im left with 7).

It can seem confusing at times but the more you hang around it the more you will understand it.

hope this helps