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Trading stock involves ownership of the underlying asset.

Given the total nr of shares on the market are limited.

Given that the price moves according to Supply and Demand.

Would CFD trading and spread-betting directly move the price?

What about indirectly?

I think about CFDs and Spread-Betting as parallel "reactive" markets. Is this correct?

Thank you!

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    Derivatives only move the market, albeit a small amount, when transactions involve the buying or selling of the underlying. CFD trading and spread-betting do not and therefore they do not directly move share price. Commented Aug 29, 2018 at 12:10

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CFDs are a derivative of the underlying, in this case the underlying shares.

So CFDs derive their price from the underlying shares. If they derive their price from the underlying shares then how can they move a market they are derived from.

Spread betting works similarly.

So the answer is no, CFDs and Spread Betting do not move the stock market.

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