Alanmcg below is a copy of section 2 from FPmarkets pds section 1 . As I said when u lose on a FP dma cfd posi the money comes out of your bank into theirs and when u win it comes out of theirs into yours .As for comparing dma with mm I really don't give two hoots . In my view they are both as bad as each other but hopefully treasury will get enough positive responses to clean up the moronic agreements . From the pds From section 2. Share contracts for difference ;
2. Share contracts for difference 2.1. About Share CFDs Contracts for Difference allow you to receive many of the benefits of owning the underlying security on which the CFD is based, without physically owning it. CFDs are an over-the-counter (OTC) derivative product that allows you to benefit from the price movement of the underlying security. The difference between the opening and closing price of a CFD is settled in cash. At no stage do you take delivery of the underlying security. CFDs are an alternative medium to short term trading solution that provide many of the benefits associated with dealing in financial products such as shares, without having to physically own them. The holder of a CFD can open leveraged “long” or “short” position without having to take or make delivery of the underlying security. In order to open a CFD position an initial margin must be provided as collateral. All open positions are marked-to-market based on the price of the underlying security with profits or losses being debited or credited daily. As holders of CFDs do not own the underlying security on which they are based they have no right or obligation to acquire or deliver the security itself.
