kennynah wrote:the CFD brokerage is always taking opposite to ALL your trades... you buy, they sell, and if you sell, they buy... no CFD traders trade with another CFD trader..ie, they are the gambling house / casino
don't ever trade CFD directly... they will ALWAYS have the edge...no matter what they say
but then why do so many still trade using CFD? the answer is simply "leverage".... and becos of "leverage", the risks involved is exponentially multiplied... but this is not the only reason why one should not use CFD to trade stocks...
the other reason is that CFD houses decide if they want to keep a certain counter open for trading... ie, it is 100% their perogative as to whether they want to trade with you...herein lies the danger...
imagine this scenario... you bought a company X at $5 using CFD...and for whatever reasons, company X make a sudden and very damaging announcement about their business prospects...the next day, market opens and company X stock price opens at $2 and continuously drop to 50cents... that CFD house can choose to NOT accept your SELL order... why should they? they make money when you lose..and they are in NO way obligated to trade with you, if they choose NOT to...
go ask people what happened during the days after the planes crashed into NY.... you will discover that many many many CFD houses refuse to open for trading... too bad...
Cheng wrote:I chanced upon Kim Eng's Direct Market Access (DMA) CFD. Is this a new model that is more transparent as compared to the Market Maker CFD model?
Are there any restrictions in DMA?
I got this info from here http://www.nextinsight.biz/content/view/2466/79/
There is not much info at Kim Eng though.
Poles wrote:does it mean when you short using CFD....brokerage will long against you??
Poems CFD wrote:What is CFD Direct Market Access (DMA)?
Phillip Securities Pte Ltd (“PSPLâ€) sends a corresponding stock order to the respective exchange upon receipt
of the client’s CFD (DMA) order, allowing clients to participate in the order book of the exchange and the
liquidity of the market. Clients can also participate in the pre-opening and
pre-closing sessions of the exchange.
kennynah wrote:no CFD deals will be reflected in SGX Exchange....
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