When shorting a CFD, do you pay (sell) at the BID price and sell(buy) at the ask price?

Discussion in 'Trading' started by cashclay, Mar 18, 2016.

  1. cashclay

    cashclay

    Just wondering if CFDS shorting is the same as shorting
     
  2. botpro

    botpro

    No, you just sell or buy for that price that you desire, ie. you make your own offer and wait for a sucker who is willing to take your offer... :D
    For this you use a limit order, not market order.
     
  3. d08

    d08

    What CFD? Equities, indexes and other groups are all different. Equity CFDs behave exactly like the underlying but with less routing options. Indexes seem to have a different spread compared to the underlyings, so it's not as straightforward.
     
  4. AbbotAle

    AbbotAle

    A CFD is like any other financial instrument, there's a bid and offer price. If you want to guarantee short, sell the bid, if you want a better price but no guarantee of a fill work an offer. Vice versa for longs.
     
  5. d08

    d08

    For DMA CFD brokers, it's not a separate market determined by supply and demand. It's tied to the underlying and the bid/ask is arrived from it as well.
     
  6. CBC

    CBC

    Where are exchange listed CFDs? I thought they all went to OTC.

    If u trade OTC, then ur broker will decide ur prices for you, and let me tell you, it aint to ur freakin advantage.
     
  7. d08

    d08

    They're OTC but you need to know the difference between a DMA and a non-DMA one. I trade CFDs every day and I get exactly the same prices as I would with the underlying, otherwise why bother.
     
  8. AbbotAle

    AbbotAle

    Yes, in my example I was assuming the broker was DMA. But then it's the same non-DMA, you'll be offered a bid and an offer, if you want a guaranteed fill sell the bid (to cover a long or go short).
     
  9. CBC

    CBC

    Hi d08,

    Which exchange are ur CFDs trading on?
     
  10. cashclay

    cashclay

    Hi thanks for the responses. So just to simplify everything when shorting a CFD im selling at the bid and buying them back at the ask??? And why does it say i cant sell a security because the price is too close.
     
    #10     Mar 18, 2016