Discussion in 'Journals' started by Dharmakaya, May 1, 2010.
Trading S&P500 through CfdÂ´s.
IÂ´m trying to be "all in" with a tight stop..
What's the possible loss?
(what's a CFD? Is that one of those things they have in Australia?)
Contract For Difference Basically the same as buying the underlying but you have leverage anywhere from probably 2:1 - 20:1 on stocks and 100:1 i believe on indexes.
They are in Australia and the UK and maybe elsewhere aswell
It's something they allow to trade in FREE markets ;-)
In your face United Slaves of America
Not really. CFD's grew in popularity as a way to get around the UK stamp duty, a transaction tax on equity trades. They initially existed in response to an unfree market.
We have them in Canada, but they don't impress me at all. I prefer futures trading through U.S brokerages, for many reasons.
To the OP: You'll be getting to know your brokers risk department.
Yet another stupid journal with pipe dreams.
I'm currently swing trading with CFD's and i am not leveraging myself up much at all, but it scares me that in the rare event of a huge gap against me (I dont hold over earnings anouncements) i could potentially get almost wiped out overnight.
Needless to say i intend on moving to options soon to cap my max potential loss in an armageddon type situation.
We need a gambling for dummies section on ET.
Threads like this would all be moved there, and every new thread would be auto-ignored for all...
But bots would auto-generate random responses to make new posters like this feel they are being listened to...
I donÂ´t recommend CfdÂ´s over futures. I guess the spread is larger and maybe some firms even trade against you.
I donÂ´t recommend "all in" if you donÂ´t know what you are doing. Without money management you WILL lose everything.
I donÂ´t have a big fat wallet so i have to swing with my huuuge .... instead..
Trying to build a capital i mean..
If one already have $76378083 then whatÂ´s the point with taking risks?
With futures you canÂ´t lose more than whatÂ´s in the account. With CfdÂ´s you can owe them money if something happens. ThatÂ´s what the papers say at least. I guess itÂ´s just a way around laws and difficult to make reality of. They would not get a $ from me.
Just wanted to mention it.
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