I'll answer your question Gaz!
CFDs Contract For difference downside is exactly what makes it very appealing-your trading on margin.
In otherwords you buy/sell a stock/sector/comodity ect at which size you pre determine.So if you buy 1000 CFD shares at $40 and the margin is 3% then all you have to cough up is $1200($40*1000*3%=$1200).Its like a deposit on a loan for shares.You just bought $40 000 of the stock and $1200 is the deposit.If you sell that stock at $45 you make $5000 profit,which is roughly 317% as opposed to only 12.5% in the physical market.($5000-$1200/$1200=317%).
The downside is it works the other way as well-so strict risk management is essential.CFD providers provide automatic stop losses and also guaranteed fixed stop losses.
Another great thing about CFDs is the commission/brokerage is very minimal and depending what you are trading no commission at all.
Cheers
I'll answer your question Gaz!CFDs Contract For difference...
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Last
$65.17 |
Change
0.870(1.35%) |
Mkt cap ! $12.55B | |||
| Open | High | Low | Value | Volume |
| $64.30 | $65.22 | $64.25 | $3.501M | 53.91K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 5 | 252 | $65.16 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $65.20 | 68 | 3 |
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| Last trade - 13.37pm 06/11/2024 (20 minute delay) ? |
| ASX (ASX) Chart |