dudes, this is how I see CFD's working. Some one offers to loan you $1m for a day to by shares and all you have to do is put down $10,000 deposit and pay the interest. you buy the shares hoping they go up and sell up before the end of the day to repay the $1m. if they go up great, if not you need to put in the difference to top up. CFD's offer high leverage and the ability to short a stock. The problem i have is the pricing of the shares as you dont actually buy the shares rather buy the CFD through the issuer. And this is were I get lost is how the issuer covers themselves without holding the phyisical given it is a zero sum game as it has lay off the bet as well. The sub-prime fiasco would have made some very wealthy and others very poor in the CFD market.
Not sure that they issue CFD's on stocks such as MPO given the spreads, but I will standard corrected
To much leverage for me.
MPO Price at posting:
0.0¢ Sentiment: Buy Disclosure: Not Held
