fr*gging warrants..., page-4

Hi Miles,

I'm looking at Dealforfree myself just lately... about the only two downsides I can see with CFD's (compared to warrants) is that:

1. it's a "money up front" situation, ie, if your strategy on a particular stock is willing to tolerate a bit of movement against you, your position will suck more money (and it can be a lot of money) over and above your initial outlay for the position directly out of your account; and

2. strictly speaking (and related to the first point), one has unlimited exposure with CFD's. (But then again, they offer guaranteed stop loss for an extra premium).

And if you know what you're doing, you could make a lot of money - a LOT of money - on CFD's. So well worth considering...