https://www.marketwatch.com/story/t...t-volatility-using-his-credit-card-2018-02-06 This poor kid lost a lot of $$$ trading CFD's. I know they are risky but they do have some advantages....no day trading rules; a 5% margin. Has anyone traded them ? Which exchanges and brokers supports them ?
One of the ET sponsor - IC Markets - amazing broker, supports many CFD`s currencies,metals, etc...But it`s not for the US folks, afaik.
Uh, Dude....he decided to leverage himself and trade CFD's instead of stocks outright. He knew what he was getting into.
yeah they're ok but iirc all cfd brokers are bucket shops nadex spreads are very similar but it's only up to weekly expiration $1/tick and fully unleveraged so no margin calls
all the fuss about cfds i think i know what.if it was allowed in the US no one would trade futures anymore.with the 10K account you can trade from 1 to 100 sp-500 cfd back and forth forever.1 spoo cfd is just a couple of bucks.how did he managed to blow up 10K!!!he couldve caught the bottom even if he added 1 contract per 10 minutes.he`s probably loaded full margin within 2 seconds.
Of course...he didn't know what he was doing....that's now obvious. You can't mess around with these levels of volatility.