Really simple fundamental question here... Ofcourse CFD Companies charge for the transaction fee + they charge margin on losses overnight... But where does the profit come from, if my trade wins? Given trading is a zero sum game... With Securities. Other people loose when I win.
With CFD's. When I win... Is it the CFD Co that looses?
Let me provide an example:
Opening -transaction fees
Margin fee's... (Lets say this totals $10)
If I purchase a stock at $100.
And it goes up by 100%.
Now $200
I decide to close the position... Same figures again
Closing -transaction fees,
Margin fee's... (Lets say this now totals $20) Because the price doubled
I am then due $170 (Minus $10 Opening + margin fee's -$20 Closing fee's) The $70 difference Profit.... Does this come at a loss to the CFD Broker / CFD trading company?
