Is there such a thing called DMA short CFD?

[Charlie Whiskey]

It's next to impossible to short sell shares on the ASX and short CFD seems to be the perfect solution. The issue is, will I still be able to get real market prices (DMA) if the CFD provider can't really do a real short on the ASX itself?

 

[Krusty the Klown]

It depends on the CFD provider.

If you look through their list of tradable shares, some you can go long only.

You may have to go to a MM to do it.

 

[SilverRanger]

IG markets offer approx 220 shortable stocks, MF Global about 150.
CMC Markets (MM) probably has the most shortable stocks.

 

[Charlie Whiskey]

IG markets offer approx 220 shortable stocks, MF Global about 150.
CMC Markets (MM) probably has the most shortable stocks.

Now, do IG Markets and MF Global hold the physical securities and do an actual sell when a trader purchases a short CFD? The reason I'm asking is, everyone perfer a broker that wants them to win for good reasons, and I'd imagine if that's not the case then the spread on offer would be very much wider than the actual market? Would you gents have experience to share?

 

[tasmanian]

I trade with IG markets.There quotes on asx stocks are exactly the same as the real market.When a buy sell moves so does the pprice on ig.Its identcal.Your buy sells arent in the real market though unless ig are hedging there bets.

With indices,oil,gold etc no comission just the spread.They make there money by spreads,interest on long/short position.comissions and probaly the most by people losing all the money in there accounts.

Thats the way I see it anyway.If you beat the market you will make money from IG.Its not rigged or anything as far as I can see.Otherwise they would have no customers after a while.Ive made money from iG and if you withdraw money its in your bank the next day 2 at the most so cant complain.

And I dont work for IG and have nothing to do with them personally.I havent tried any other CFD providers so cant comment on those but ig seems as good as any that I looked at price wise,

 

[SilverRanger]

With DMA CFD providers in general I would assume that all buy and sell orders will go through the actual exchange order book, so the spread you get is the market spread.

However, I am yet to use IG's DMA as I am having problem activating it (yes, you actually need to activate DMA with IG otherwise it will serve you as MM)

http://www.igmarkets.com.au/cfd/dma-example.html

 

[skc]

Yes. IG DMA goes straight through to the exchange. You can see your order in the market depth.

They may charge you a stock borrowing fee every now and then, depending on how hard it is to locate the stock. This generally doesn't occur and when it does it is quite low... I got charged ~$1.25 for holding a $2.5K short position for 10 days.

 

[Wysiwyg]

I have used CFD DMA for Index and OTC Forex but not for stocks. I know the LONG orders go straight into the market and are visible in market depth as per regular brokering practice but I have not seen nor heard that SHORT sale orders go straight into the market.

Question to any CFD DMA users as I am no longer with a CFD provider.

Is your order to SHORT sell the stock visible in market depth?

 

[captain black]

Is your order to SHORT sell the stock visible in market depth?

Yes. I use MF Global and all orders (long or short) show in market depth.

 

[Wysiwyg]

Yes. I use MF Global and all orders (long or short) show in market depth.

Good thank you Captain. Looking back now I don't know why I went through the Dealing Desk. Although fills with insufficient volume did work in my favour, transparency is now preferred.

 

[Pit Trader]

Good thank you Captain. Looking back now I don't know why I went through the Dealing Desk. Although fills with insufficient volume did work in my favour, transparency is now preferred.

I have used MF Global they are good and the Iress platform is good.
IG are ok but I prefer MF.

 

[RazzaDazzla]

I have used MF Global they are good and the Iress platform is good.
IG are ok but I prefer MF.

Iress is good? Compared to what?!

Where do I start with the issues it has?!
-Need to enter prices in cents rather than dollars and cents
-Can't enter STOP MARKET orders. Only accept STOP LIMIT orders. If your limit price is too far away then your trade won't execute. IF your limit is to close, you risk not being filled!
-Can't enter bracketed orders. So need to wait until your contingent order is filled then go and set another contingent order to act as your stop.


I begrudgingly use MFG eClick platform, which is even worse than their IRESS platform. I only use them to short stocks as I can't short with IB. I choose to use the eclick platform as I am not going to pay $80/m for platform/data when I have all the data I want in IB.