CFDs for beginners

[Jackpot]

Hi

Is conditional order available in CFD trading.
I know normal shares trading allows "Stop Loss", "Stop Entry" and "Stop Profit" but how about CFD trading?

Which CFD broker do you guys go for when trading Aussie equity CFD?
How is the brokerage like? Is 0.08% the norm?
If conditional order is available, are there additional cost?

Cheers
Jp

 

[So_Cynical]

Re: CFD for beginner

CFD for beginner = danger will Robinson.

Surprised im the first to say this...GL Jackpot.

 

[Jackpot]

Re: CFD for beginner

CFD for beginner = danger will Robinson.

Surprised im the first to say this...GL Jackpot.

I understand the danger of leverage...just thought of finding out more.
Well guess I wont get much help here... thanks anyway

 

[skc]

Hi

Is conditional order available in CFD trading.
I know normal shares trading allows "Stop Loss", "Stop Entry" and "Stop Profit" but how about CFD trading?

Which CFD broker do you guys go for when trading Aussie equity CFD?
How is the brokerage like? Is 0.08% the norm?
If conditional order is available, are there additional cost?

Cheers
Jp

Typically all the conditional orders you mentioned are available, plus many more. They are usually free from additional fees.

0.08% commission is the norm, with minimum charge around $6-$10 per trade.

IG, CMC, GoMarkets, FP Global just to name a few. Personally use IG DMA platform which is good for the basic execution and other benefits imo. See the separate IG thread for more information (post #283 from that genius called SKC). https://www.aussiestockforums.com/forums/showthread.php?t=7952&page=15

Take note about mixing CFD and beginners. It's dangerous, but not insurmountable. You just have to learn more. Good luck.

 

[Jackpot]

Typically all the conditional orders you mentioned are available, plus many more. They are usually free from additional fees.

0.08% commission is the norm, with minimum charge around $6-$10 per trade.

IG, CMC, GoMarkets, FP Global just to name a few. Personally use IG DMA platform which is good for the basic execution and other benefits imo. See the separate IG thread for more information (post #283 from that genius called SKC). https://www.aussiestockforums.com/forums/showthread.php?t=7952&page=15

Take note about mixing CFD and beginners. It's dangerous, but not insurmountable. You just have to learn more. Good luck.

Hi skc

Thanks for the info, appreciate that.
I do know that CFD is a double edge sword and it magnify losses as much as gains. That is the reason I like to find out if Stop loss can be placed on CFDs trading....hoping by doing so it can prevent or at least minimise hugh losses.

Cheers
JP

 

[beamstas]

Hi skc

Thanks for the info, appreciate that.
I do know that CFD is a double edge sword and it magnify losses as much as gains. That is the reason I like to find out if Stop loss can be placed on CFDs trading....hoping by doing so it can prevent or at least minimise hugh losses.

Cheers
JP

Dont take larger postions just becuase you are using CFDs

 

[liquidmaker]

Jackpot,

I'm knew too CFD's also but have been trading them for about 3 months now. At the time of the order you can place a stop loss as well as limit if you like. You don't need too place the stop loss but it does reduce the margin you require in your account. The margin is the amount of money required in your account to cover the trade. The riskier the stock the more margin required.

You can log on too ig markets and dowonload a free demo if you want.

Hope this helps

Liquid

 

[liquidmaker]

Jackpot

Forgive my spelling.

The cost of CFD's are on IG markets are:

$8 for each trade either buy or sell.

Then interest on positions held overnight. So if your long you have to pay interest not much approx. 50c on positions say 1000 shares in a $2.00 overnight. If you short sell a share then IG pay you interest.

Liquid

 

[Jackpot]

Dont take larger postions just becuase you are using CFDs

Hi beamstas
The reason I was considering CFDs wasnt really to take larger position but more for the convenience of taking a 'short' position if need to I am sure there are other instructment for short selling but I only know CFDs. Options is a different ball games altogether and I am confused with all the delta, gamma etc.....

Cheers
JP

 

[Jackpot]

Jackpot,

I'm knew too CFD's also but have been trading them for about 3 months now. At the time of the order you can place a stop loss as well as limit if you like. You don't need too place the stop loss but it does reduce the margin you require in your account. The margin is the amount of money required in your account to cover the trade. The riskier the stock the more margin required.

You can log on too ig markets and dowonload a free demo if you want.

Hope this helps

Liquid

Jackpot

Forgive my spelling.

The cost of CFD's are on IG markets are:

$8 for each trade either buy or sell.

Then interest on positions held overnight. So if your long you have to pay interest not much approx. 50c on positions say 1000 shares in a $2.00 overnight. If you short sell a share then IG pay you interest.

Liquid

Hi Liquid

Thanks for the info. Its really useful to me....didnt know the interest portion : thanks for bringing that up.
The $8 trade is much cheaper than the $20 I am paying for commsec to trade shares. Another reason I wanna switch to trading CFDs..cheaper brokerage
I might give IG a try first since a couple of you have recommend it.

Cheers
JP

 

[Wysiwyg]

Jackpot

Forgive my spelling.

The cost of CFD's are on IG markets are:

$8 for each trade either buy or sell.

Then interest on positions held overnight. So if your long you have to pay interest not much approx. 50c on positions say 1000 shares in a $2.00 overnight. If you short sell a share then IG pay you interest.
Liquid

I`m fairly sure that with IG Markets you have to pay interest on short positions now as well. Please correct me if I`m wrong.

https://www.aussiestockforums.com/forums/showthread.php?t=14819

 

[clayton4115]

just to let you know i am with GoMarkets and use their GoTrader platform. I find them really good, good phone support as well, no complaints so far!

 

[skc]

I`m fairly sure that with IG Markets you have to pay interest on short positions now as well. Please correct me if I`m wrong.

https://www.aussiestockforums.com/forums/showthread.php?t=14819

IG pays you interest when you short, you pay IG interest when you are long.

The interest rate applicable is the benchmark rate (4.25%) plus/minus a margin to IG's favor. The margin is 2.5% I think...

So long, you get charged 6.75%, if you are short, you get paid 1.75%.

The situation described in the other thread applies to UK shares and some Fx, where the margin is greater than the benchmark rate. So say benchmark is 2%, IG end up paying you -0.5% (i.e. actually charging you) on any shorts you have.

 

[Wysiwyg]

IG pays you interest when you short, you pay IG interest when you are long.

The interest rate applicable is the benchmark rate (4.25%) plus/minus a margin to IG's favor. The margin is 2.5% I think...

So long, you get charged 6.75%, if you are short, you get paid 1.75%.

The situation described in the other thread applies to UK shares and some Fx, where the margin is greater than the benchmark rate. So say benchmark is 2%, IG end up paying you -0.5% (i.e. actually charging you) on any shorts you have.

Yes that is it, thankyou.

 

[Jackpot]

Hi

Anyone familiar with IG Markets?
What is the different between the PureDeal and PureDMA trading platforms?

How is the transfer of funds? Is it any good?
I mean how easy it is to deposit and withdraw funds from IG Markets?

Thanks
JP

 

[beamstas]

Hi

Anyone familiar with IG Markets?
What is the different between the PureDeal and PureDMA trading platforms?

How is the transfer of funds? Is it any good?
I mean how easy it is to deposit and withdraw funds from IG Markets?

Thanks
JP

PureDeal is MM - Basically they try to rip you off as much as possible. Your trades won't actually go in the market, and they'll gun for your stops at every change.
PureDMA is Direct Market Access - You need $5000 in your account to use this.

If you don't know what MM and DMA are, i suggest you take a while and research CFD's before trading them. There will be trading opportunities next week, next month or next year. Don't rush and do some research first. SuperCharge your trading with CFD's by Jeff Cartridge is a good introduction to CFD's.

I believe the transfer of funds is just as good as any other broker, normally overnight.

Cheers

 

[Trembling Hand]

PureDeal is MM - Basically they try to rip you off as much as possible. Your trades won't actually go in the market, and they'll gun for your stops at every change.

Really?? You got any evidence of this?

 

[beamstas]

Really?? You got any evidence of this?

Looks like i just got stopped out (again)

Always here of people on this board of people getting stopped out when the price didn't even touch that. I have no hard evidence because the short time i was actually using IG i didn't take much notice of the screen. More of a general consensus among people who have traded on IG.

And don't try to tell me they are trying their best to help you make money for giving you good fills / not stopping you out. Their sole objective is to take as much money off you as they can. They are a MM and this is how they keep their company afloat.

 

[Trembling Hand]

Looks like i just got stopped out (again)

Always here of people on this board of people getting stopped out when the price didn't even touch that. I have no hard evidence because the short time i was actually using IG i didn't take much notice of the screen. More of a general consensus among people who have traded on IG.

And don't try to tell me they are trying their best to help you make money for giving you good fills / not stopping you out. Their sole objective is to take as much money off you as they can. They are a MM and this is how they keep their company afloat.

Yep thought so. Typical drivel from losing traders.

 

[beamstas]

Yep thought so. Typical drivel from losing traders.

They didn't bother me because im not a scalper / day trader so a few cents here and there doesn't bother me.

I understand your point you made on your blog about MM's and how they couldn't afford to spike prices. Not everyone is as fast on the button as you, i bet 95% of poeple would still be reeling about a price spike rather than actually trading one. Unless a few able minded traders like yourself could take advantage of them and swing 500 contracts back to the real price they could make money off it every time. I do have evidence of other brokers marking up prices on the SPI by 5-10 points over the real futures contact. Not sure if this is anything devious but it definitly doesn't give you a true indication of where the market is at.

Anyway i'll retract my statement and leave it like this

When you are trading through a MM you are not on an even playing field. You are trading against the people who are meant to be simply a conduit for you into the market. I don't trade MM's, not because i've been stung by any devious manouvers, but because i have enough trouble profiting in the market with real fills, i don't want the extra trouble of fighting with a broker too.

I can't give you any evidence other than to watch the live charts yourself. Personally i havn't been stung (i don't think) by any stop catching manouvers, but you'll hear about them if you ask around. I don't think it can be proved that they don't do it either.