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Questions tagged [cfd]

A contract for difference (CFD) is a financial contract between two parties in which the seller agrees to pay the buyer the difference between an asset's current value and its value at a time stipulated in the contract.

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47 views

CFD trading in commodities, is it safe to hold?

I am looking into trading and created a demo account for this trading website just to mess around a little and try to get some understanding of how it all works. I made an order to open at a set price....
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1answer
27 views

Reduce CFD financing cost by depositing more

Is it possible with any brokers / spread betting firms that charge contract for difference financing fees to reduce those fees by depositing more money to your margin account after your position was ...
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0answers
38 views

EU citizen temporary living in the USA, trading CFD

I am an European citizen, currently living (non-permanently) in the USA. I am US non-permanent resident, in other words. Am I allowed to trade CFDs, through an European portal?
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85 views

Does CFD and Spread Betting “move the stock market”?

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 ...
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4answers
192 views

Investing in Stocks vs CFD in safe Mode

I made a few thousands dollars through a couple of freelancing projects (around $20k - $30k), i’m 32 with almost no responsibilities, have a full time job making decent money, and I live in Egypt with ...
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0answers
28 views

Difference CFDs and stocks at Interactive Brokers?

what's the effective differences for a trader at IB between CFDs and stocks? As far as I understand the following: CFDs are quoted at the same price as the underlying stock (ask/bid is the same) and ...
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1answer
105 views

Is possible to short sell stocks without using CFD?

the title is all my question :) Is possible to short sell stocks without using CFD?
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2answers
162 views

Interactive Brokers CFDs without leverage

So I would like to buy a certain stock that is not available in my currency and also an index fund. I see there is the option to buy it with CFD but I cannot find it in the documentation or through ...
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0answers
30 views

Smart stops on CFD trades

I've just started trading currency with a CFD broker. Luckily on a demo account for the time being, but at some point I want to move to real money. Right now I'm trading mini contracts. A contract is ...
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2answers
154 views

Forex & CFDs good profits, but why?

First off, i am a total newcomer to trading. I opened an account with an online broker, am using their App with a 10k demo account. I am under no illusions when it comes to trading. I am not ...
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1answer
120 views

How can a broker support mass copytrading with a $100 investment when there is a larger account minimum for day-trading?

My understanding of the U.S. rules for day-trading is that you must have $25,000 in equity at the time you make a day-trade. Yet, a broker like eToro offers "copytrading", which mimics another ...
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1answer
61 views

Cfd Buy or Sell understanding

i would like to understand the following picture Example of trading if i place this kind of position what dose mean The price is 20,00 ? when the Price of the cfd is 164,00 ? Can you help me to ...
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2answers
1k views

Financial leverage - why am I only responsible for my securities?

I'm a newbie in trading and I've been reading about the financial leverage mechanism when trading CFDs. From what I got it works by letting me trade on margin by moving greater amount of money lent by ...
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1answer
61 views

When hedging with CFDs, buying and selling the same financial instrument, don't you end up earning nothing respectively losing because of the spread?

When hedging with CFDs, buying and selling the same financial instrument, don't you end up earning nothing respectively losing because of the spread?
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0answers
474 views

Is forex spread betting legal and/or taxed in Canada?

I have some questions regarding forex spread betting in Canada. 1) Is spread betting legal in Canada? I have found a few unofficial sources that say spread betting is legal in Canada, however I was ...
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10answers
9k views

Is CFD trading a good idea?

I am planning on speculating in forex and possibly indices, however due to my lack of experience I don't want to invest too much. With £100, you can't really get very far with indices, and profit ...
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2answers
372 views

It's possible to short a stock without paying interest?

Is it possible to short a stock or stock CFDs without paying any interest or swap fees for mantaining the position? Thank you.
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2answers
2k views

InteractiveBrokers: How to calculate overnight commissions for CFD?

How to calculate overnight commissions for CFD on InteractiveBrokers? Here https://www.interactivebrokers.com/es/?f=/en/trading/pdfhighlights/PDF-CFDs.php?ib_entity=es they state: Overnight ...
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0answers
54 views

Why CFD works? No stocks involved? [duplicate]

I don't understand CFD. I know sth about the leverage. Also that you can make money on the stock price fall - you sell before fall and then buy the same number of stocks to "resupply" the broker. But ...
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1answer
224 views

CFD market makers: How is the price coupled to the underlying security?

If I understand it correctly, there are two different CFD provider modes of operation: DMA (direct market access), where the provider will immediately hedge all positions with matching trades on an ...
3
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1answer
555 views

Is it possible to have a debt in real money cfd account?

Is it possible to switch from a demo to a real money account in plus 500 and then try to trade with the $25 you start with? I'd like to try trading, starting only with this money, but I fear I could ...
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2answers
725 views

Anyone know if IG or Plus500 are scams or not? [closed]

I have been doing some research into online trading and came across 2 platforms that are pretty good and user friendly. http://www.IG.com and http://www.plus500.com I have read quite a lot of reviews ...
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3answers
290 views

Making money through CFD

If I don't own the stock I am investing in, like in a CFD, then how do I make money? Where does the money I am investing go to, and where does the money I make come from? And what happens to the ...
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1answer
316 views

Understanding bid and offer prices in CFD's

I am currently researching the mechanics of CFD trading and, being new to this, am a bit confused about certain terms. I understand that the "bid" is the price that the CFD is sold at and the "offer" ...
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1answer
210 views

Ex-dividend dates for Nikkei and Dow Jones on CFD and Spread Bet Markets?

I've found a few ex-dividend date sites for the Dow Jones (can't find any decent ones for the Japanese Nikkei Index). However the ex-dividend dates don't seem to match when I get dividend payouts on ...
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1answer
585 views

Why buy SPY when there is S&P500?

I don't quite understand the purpose of SPY (SPDR S&P 500 ETF Trust) and other S&P500 ETF. If SPY is designed to track the performance of S&P500, why not just buy S&P500(like index ...
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1answer
196 views

How does a CFD work behind the scenes?

I'm curious as to how the Contracts For Difference (CFDs) work. I understand how they work for the consumer side - you enter into an agreement to pay/be paid the difference between the stock price at ...
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1answer
5k views

What is the difference between spot forex trading and cfd forex trading?

Some brokers offer to clients the facility to trade the foreign exchange market via the spot market or via CFDs. The thing I don't understand is that some currency pairs are offered via both methods. ...
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4answers
4k views

Is it possible to trade CFD without leverage?

I'm new to trading. Based on what I read, trading CFD involves high risk because of leverage. Is it possible to trade CFD stocks without leverage (in Etoro for example)? If this is possible, then I ...
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1answer
4k views

Overnight charges for brokers holding stocks?

I'm trying to learn about stock markets. I eventually want to invest a small amount over a long period. Yet, I notice on a lot of broker sites that they tend to charge an overnight fee for any stocks ...
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1answer
394 views

How trading in currency pair works, underlying techniques and mechanisms

I am somewhat experienced in Forex trading, but I have a question which has bothered me for quite some time. If we for instance go back in time four months, to before the beginning of value loss the ...
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1answer
80 views

Is it a bet on price fluctuations and against the house?

When one trades Forex, CFDs, metals, or stock indexes with online brokerage firms, does it mean we bet on the price fluctuations without actually owning the underlying assets and is it a bet against ...
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6answers
12k views

Is CFD a viable option for long-term trading?

Something really does seem seedy that if I invest $2500, that I'll make above 50k if the stock doubles. Is it really that easy? Looking at the opposite side, yes my investment can vanish from just a ...
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1answer
360 views

Why people still look for “naked” short-sellng stocks instead of short selling CFDs

I have been doing some research about equity trading and the stock market in general, and I have a doubt. I see that a lot of people is looking for short-selling stocks, but that is not so easy ...
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1answer
274 views

Can liquidity provided by CFD be almost as good as the real market action on the actual exchange?

CFD providers mirror the market action on the actual exchange. But how good is the mirroring? Do they try to match both the bid-ask prices and the bid-ask sizes exactly? Is it possible that the ...
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1answer
328 views

Do CFD providers withhold liquidity in a market panic?

My understanding of CFD providers in UK is that they try to imitate the real market action by being market makers. However, is it a risk that they may withhold liquidity in a market panic crash to ...
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5answers
14k views

Buying a small amount (e.g. $50) of stock via eToro “Social Trading Network” using a “CFD”?

On LinkedIn I saw an ad claiming I could buy some AAPL stock for as little as $50. I clicked and came to a site called eToro that calls themselves a "Social Trading Network". It appears the buying of ...