been a hotcopper member for about 8 years now, haven't traded for about 5 yrs,
I don't even know how this site works...damn
Ive got a few qs re: cfds. can some one point me or tell me pls.
now, I don;t even know if tis is the right place to post...
now, I understand, that for CFDS, a typical eg, is 10% of the value as a deposit, so $100 in the account, buys $1000 worht of shares...... all good.
shares go up 10%, so which is $100 profit, so $100 investment, = $100 profit = 100% profit in a short time... alll good, easy.. what are the charges involved..
now, the question, I don't undesrand is if you have a stop loss of say 10%, the shares go down to $900, do you lose the $100, I asked the CFD dealer, and he said , it depends... this confused me a lot........
so my understanding of CFDS is basically, if you think youve got a good stock thats going to fluctatue say 10% in a short period of time, you basically borrow money to magnify your profit or loss......if this is hte case, seems quite risky to me..... obviosuly you can't affford or have the cashflow for the full share values, so you borrow funds to magnify your profit OR loss...
