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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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Stock nodes and trading platform

On a dating app a man asked me to buy crypto currency and to trade stocks during nodes. Is this a problem? I had a small profit until now. But he wants me to invest more and if I don't do it he will ...
user136196's user avatar
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1 answer
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CFDs - What are the overnight holding times where you get charged swap fees?

We get charged overnight swap fees when holding CFD positions overnight. But what are the overnight trading times? Especially for crypto and shares. Scoured through the internet but could only find ...
masterpiece's user avatar
-4 votes
3 answers
2k views

Do CFD brokers ban profitable clients from trading on their platform, since these clients make them lose money?

Many CFD brokers make money from trading against their clients and profitable clients make them lose money. This is similar to how casinos operate. Casinos ban profitable customers. Do CFD brokers do ...
curious's user avatar
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As a retail CFD trader, who benefits when I lose money?

Who wins when I lose money as a retail CFD trader? Unlike Futures or other regulated assets, CFD's may not require a buyer counterpart (or the broker might play this role)... I suspect the broker ...
gaut's user avatar
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1 answer
303 views

IG CFD - difference between deal and order tabs

In IG platform CFD, what is the difference between Deal tab and Order tab? Looking for explanations and watched How to trade CFDs | IG Explainers but could not find an explanation. Deal tab Order tab
mon's user avatar
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1 vote
1 answer
104 views

What do brokers like IC Markets, IG Markets, Exness,... do with CFDs?

I understand that I don't own any share if I do CFDs but does the broker like IC Markets, IG Markets, Exness, ... buy the actual shares if I do CFDs trade buys or the broker does not buy the actual ...
Kim Mỹ's user avatar
  • 111
3 votes
2 answers
520 views

Trying to better understand eToro’s business model

As far as I understand CFD’s on eToro, I believe I am entering in a bet with eToro directly every time I go long on a stock CFD and they take the opposing side. If stock that CFD tracks goes up and I ...
miran80's user avatar
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1 vote
1 answer
308 views

Why is there a financing fee for holding a CFD overnight?

I read in lots of places that you pay an overnight financing/margin fee for CFDs, making them not suitable for long term holding - as the overnight fees add up. What I don't understand is, what is the ...
john blair's user avatar
0 votes
1 answer
236 views

Why is maintenance margin at 50% if initial margin is at 100%?

Let's say I open an account with a broker (plus500.com), to invest on margin. I want to open a position (in that case £100 on CDR:WSE) without leverage. It asks me an initial margin of 100%, meaning I ...
Pierre Espenan's user avatar
-1 votes
1 answer
138 views

Is it a good idea to buy and hold Bitcoin via CFDs? [closed]

Is it a good idea to buy and hold (from few months to 2 years) Bitcoin, or even stocks for that matter, via CFD (Contract For Difference)? The advantages (through some brokers) that I have found for ...
98418's user avatar
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1 answer
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Negative Sell Trades — what do I need to do now?

I'm new to trading. I'm trading crude oil CFDs. I'm holding a short position of 400 barrels of crude oil at $37.50, but the price of crude oil is now $41.50. During the move from $37.50 to $41.50, my ...
Yasir Shabbir Choudhary's user avatar
1 vote
1 answer
821 views

Are CFDs without leverage suitable for long-term investment?

According to Is CFD a viable option for long-term trading?, CFDs are inappropriate for long-term investments because of financing fees and margin calls. This conclusion appears to be true only if the ...
Flux's user avatar
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1 vote
1 answer
75 views

Are CFD stock shares anonymous?

I'm not an expert in the stock market but I've a question. Are CFDs anonymous or how do stock market listed companies identify their investors?
CSD's user avatar
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0 votes
2 answers
644 views

Tax and CFDs - is income on withdrawal or at trade execution? Australia

I wonder if for tax purposes, is income realised when funds are withdrawn into a bank account or when a profitable position has been closed? From what I understand so far, it is probably the latter. ...
user1330734's user avatar
1 vote
1 answer
133 views

Investing novice here, why after a 7.5% increase from an order am I still in the red? (CFD)

I was wondering if you would be able to explain the reason/maths behind this. I invested a small some into a CFD stock today and it's currently sitting at about an 7.5% increase from when I made the ...
Charlie Coplestone's user avatar
1 vote
2 answers
257 views

Why are CFD considered more dangerous than gambling?

Personally I see CFDs as a balance between spot and futures market. Future market are a bit expensive for a beginner because of lot size. Spot may not be right because of the settlement period, govt ...
PhilipFisher's user avatar
0 votes
2 answers
104 views

How to look for evidence of a stock that got suddenly halted during regular trading hour in the NASDAQ exchange?

Yesterday (May 14th, 2020) I was trading CFD on Co-Diagnostics (CODX). Then at 13:25 EDT the stock halted in the NASDAQ exchange and it was until 13:58 EDT that the market resumed (subsequently my ...
Bøbby Leung's user avatar
0 votes
0 answers
113 views

What is the difference between crude oil futures and CFDs?

In April 2020 WTI crude oil futures price gone negative. I trade crude oil CFDs using eToro and IqOption. On these platforms oil prices were different. On eToro the lowest price was around 7.3 while ...
hardman's user avatar
  • 13
0 votes
1 answer
71 views

CFD Value % per time decline due to fees

The picture above shows example of SHL stock (1000 shares) value (vertical) vs time horizontal axes. Redline shows ordinary SHL stock value overtime monthly. Greenline shows SHL STOCK+CFD value ...
Petkus 's user avatar
1 vote
1 answer
51 views

Should interest on CFD positions be subtracted from UK capital gains?

The question title says it all. If I open a CFD position and hold it for a while, I will be charged interest. Can that be subtracted from the net gain or loss of the trade?
Paul Razvan Berg's user avatar
1 vote
1 answer
599 views

Can CFD stock price get negative?

Please, help me to understand how no stop loss will work for me with buy position on eToro. With the conditions: Open BUY (Long) position Leverage: x1 Initial Investment: 1,000 USD APPLE STOCK (AAPL)...
hardman's user avatar
  • 13
2 votes
1 answer
107 views

My Short CFD limit sell triggered at the wrong price, why?

So today I did a few CFD trades. On one, I went short on Kimberly Clark which meant to enter the trade it was classed as 'sell'. I do this as a limit order to minimize risk and calculate projected ...
Declan Jones's user avatar
0 votes
1 answer
1k views

Warren Buffett's opinion on CFD [closed]

What is Warren Buffett's option on CFDs? I am looking for a quotes from a documented source (please provide a reference).
spam's user avatar
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-1 votes
1 answer
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CFD on dividend stock

Below is my theory, that is false (because if it would be true then everybody would do it) but I do not know why: If a stock price is being lowered by an amount that is paid as a dividend, does it ...
spam's user avatar
  • 323
-4 votes
1 answer
122 views

Does it have any sense to trade upon user-defined chart(/s) in mobile app? [closed]

Made an app working on any platform including mobile. It can read FX (MetaTrader 4) data and enables possibility to compare multiple assets or show any user-defined func(-s) - does it have any sense ? ...
Jan's user avatar
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0 votes
1 answer
123 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....
MCC's user avatar
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0 votes
1 answer
55 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 ...
JohnyC's user avatar
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1 vote
0 answers
73 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?
Ицко's user avatar
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0 votes
1 answer
516 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 ...
Cristian E.'s user avatar
1 vote
4 answers
503 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 ...
Yehia A.Salam's user avatar
3 votes
1 answer
1k 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?
Enrique's user avatar
  • 593
3 votes
2 answers
974 views

Interactive Brokers CFDs without leverage

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 ...
arisalexis's user avatar
3 votes
2 answers
282 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 ...
SQRCAT's user avatar
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4 votes
1 answer
210 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 ...
Ryan Mortensen's user avatar
0 votes
1 answer
107 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 ...
FrankTan's user avatar
  • 103
5 votes
2 answers
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 ...
Dean's user avatar
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2 votes
1 answer
94 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?
Vitalis Hommel's user avatar
2 votes
0 answers
1k 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 ...
finstats's user avatar
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2 votes
0 answers
859 views

What is the tax treatment for dividends paid on open CFD positions?

If an investor has an open CFD position when the underlying stock goes ex-div, there will be a payment made to the margin account in lieu of dividend. This is to ensure the investor does not actually ...
SMeznaric's user avatar
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11 votes
11 answers
18k 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 ...
DividedByZero's user avatar
1 vote
3 answers
2k 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.
Jonathan Meyer's user avatar
2 votes
2 answers
6k 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 ...
Amio.io's user avatar
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3 votes
1 answer
439 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 ...
lxgr's user avatar
  • 177
2 votes
1 answer
2k 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 ...
Alessandro Sassi's user avatar
1 vote
2 answers
897 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 ...
Quintonn's user avatar
  • 111
1 vote
3 answers
429 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 ...
user11308's user avatar
0 votes
1 answer
664 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" ...
user11308's user avatar
4 votes
1 answer
260 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 ...
User101's user avatar
  • 211
2 votes
1 answer
1k 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 ...
user3168078's user avatar
5 votes
1 answer
328 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 ...
ChrisJ's user avatar
  • 153