Hi,
I am interested in getting into CFD's. From what I have read and heard, they are safer than CFD's. cmcmarkets.com doesn't mention them being riskier than shares, but a couple of other cfd brokers do.
Is my risk assessment below correct?
The risk is 100/margin%. Example: 5% margin = 20 x risk.
But if I was to put $500 into a company ($10000 value), share price was $1 and set a profit stop at 0.05c, I would end up with $100 profit - $16 trading fees. 0.05c wouldn't be hard to get in one day, so no finance fee.
Does this seem like a safer option than buying shares through a regular stock agency as 0.05 of 500 shares wouldn't even make a profit.
Thanks
Jason
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Hi,I am interested in getting into CFD's. From what I have read...
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