Australia's largest stock trading and investment forum Australia's #1 stock forum

CFD question, page-2

First 2 Last

Share
Profile

Follow
Qazi11

53 Posts.

26/08/16

23:56

Post #: 18726750
Share

Originally posted by iliya ↑

hello everyone

i just had a question regarding a situation with CFDs. Lets imagine the following scenario:

i have 1.2 million dollars. i open a long position with 1 million dollars on my CFD trading account and receive the maximum leverage. lets say 5 million dollars worth of CDFs on the company AHZ long with leverage. Now in the actual market i buy 200,000$ shares on the ASK and i checked the depth 200,000 buys will increase the AHZ share price by 20% since the company is worth 0.34c per share atm. now priced is pushed up by 20% therefore the value of MY CFDS has increased by 20%, meaning its now 6 million dollars therefore i receive a profit of 1 million dollars. and about the share in AHZ, lets they are all gone. Now i have made a profit of 800,000$ guaranteed.
this way all CFD companies should be bankrupt if people can purposely increase the value of underling asset of the CFD themselves.

now my question is what laws/regulations are there to stop this from happening? can the CFD providers do the same thing as well so they win?

please respond if you know the answer

thanks a lot

Expand

You can't buy CFD of such small conspires, they offered companies with billions MC, can you do this with BHP, CBA or TLS?

Thanks
Upvote

Reply

Top Stories

BPH

Australia’s gas crisis is here – and dying coal plants aren’t helping

'Not possible' to port renewable gas: ACCC takes AGN to court

Listen: HotCopper Wire Podcast 015 – Yeah, we're thinking the IPO market is back

NATO’s 5% target: Why Almonty Industries’ mega mine and NASDAQ listing are a perfect fit for investors

ASX Market Close: Index creeps lower as half-year mark approaches | June 26

First 2 Last

SPONSORED BY