Shorting - How do you do it?

[ithatheekret]

I only had one problem once , it was rectified , but as you all know I'm in and out , loather paying rollovers unless my dregs are well in the money and below an old support level , I mean old support not last ...........

I had a bash at a friends CMC account was impressed ........ but ...... even got one ........... still but ............ maybe I'm too fussy , but I expect what I want ...... now . Bad habit , but it's my money they want for that risk I must have control .

Anyone know some details on the ASX offering of CFDs , is broker participation orientated ?

 

[sardines]

well I'm one of the idiots still trading with a MM - CMC for that matter!

I haven't really experienced problems when placing trades on the open market. I've read claims of foul - play on "CFD provider reviews" and such - while it does not appear to be a systematic issue, there are times where I have thought that some amount of stop-hunting has occured. This is probably much more of an issue for illiquid instruments. I agree that it's really too much to have to trade against the market and your broker too. Right now, I'm considering trading ASX listed CFDs.

On the plus side for a MM, they do offer more instruments and leverage compared to say Comsec's listed CFD offering. I probably don't need both, and it certainly introduces an aspect of borrowing to gamble.

Anyways, what really frustrates me is that CMC's client data feed and order processing can have a habit of stopping straight after some important news release / major market spike up/down. eg. The last Fed rate cut a few weeks back led to a data blackout for me of about 1/2 hour. Market trades straight after these events have a higher chance of not getting filled properly / requoted.

For this reason, stop losses are very important or you could end up with a huge loss. Frantically attempting to call up a dealer but receiving the "please wait, we're busy" voice messages does not help whatsoever.

on the whole, I've lost money on CFDs so far. I've probably highlighted their disadvantages a bit more, but overall, I've found their service and platform not that bad to use.

This is not advice. Do your own research.

 

[kerosam]

Re: Shorting - How do you do it? (For AV)

[
Anything you like, from seconds to years. However, if you hold a position overnight there will be interest charges. Good thing about shorts is that you actually receive the interest, not pay it. However, if a stock goes ex-dividend when you hold it short you will have to pay the dividend amount. Always a "gotcha"

Cheers
AV[/QUOTE]

Hi AV,

so if I'm in a short position, when will I be liable for paying the dividends? XD date or payable date?

thanks in advance

 

[Trembling Hand]

XD date

 

[IFocus]

well I'm one of the idiots still trading with a MM - CMC for that matter!

Sardines I completely agree no nastiness intended

I haven't really experienced problems when placing trades on the On the plus side for a MM, they do offer more instruments and leverage compared to say Comsec's listed CFD offering. I probably don't need both, and it certainly introduces an aspect of borrowing to gamble.

Complete gimmick professionals focus on one aspect or area of trading and become experts in that area there are exceptions but at this point for you suggest just one area.

Anyways, what really frustrates me is that CMC's client data feed and order processing can have a habit of stopping straight after some important news release / major market spike up/down. eg. The last Fed rate cut a few weeks back led to a data blackout for me of about 1/2 hour. Market trades straight after these events have a higher chance of not getting filled properly / requoted.

Funny this happen too when they 1st setup here in Oz I used to have an account

For this reason, stop losses are very important or you could end up with a huge loss.

Stops are important

Frantically attempting to call up a dealer but receiving the "please wait, we're busy" voice messages does not help whatsoever.

Your trading psychology or your trading behavior development I would suggest is being severely damaged by this situation, it did for me took ages to fix.

on the whole, I've lost money on CFDs so far. I've probably highlighted their disadvantages a bit more, but overall, I've found their service and platform not that bad to use.

Just not good enough IMHO

There are now lots of CFD providers, I use MF Global DMA the platform is not as flash as CMC but it never fails I will repeat it never fails, the prices I see in the market are what I get filled for. I have had no issues and whats more I hear there are others who are as good and cheaper all DMA.

Sardines I am always stunned that there are MM's still around offering CFD's for the ASX market and people using them

This is not advice. Do your own research.

I agree with this please, please do some more research on DMA providers one idea that really appeals to me is have an IB account for going long and a CFD provider for going short.

Sorry if of topic but hope this helps no cheap shots intended.

Focus