cfds the next big risk, page-19

one of the things that I didnt understand about CFD's was that for every 'bet' made there must be an equal and opposite 'bet' to ensure that the broker wasnt exposed to any risk. Just like the bookmaker works their numbers so that irrespective what happens they walk away with a %.

So if a CFD goes up 10% coming out of a trading halt were did the CFD issuer find the money. I didnt think CFD brokers entered the market to buy phyisical shares.

The other thing that concerned new how they determined the buy/sell margins. Seemed to be left to the broker to decide.

Can anyone provide a reference or explanation.