They make money in three ways out of us:1) Buy / sell spread....

They make money in three ways out of us:

1) Buy / sell spread. Say BHP shares are selling at $10.00 on the ASX. If you want to go long (buy) you might get in to D4F at $10.02 wheras me who wants to go short will get $9.98. And if you and I got set at the same time and same number of shares D4F matched our 10000shares times 4 cents = $400 for them straight the way

2) Say we hold our positions for a few days since BHP is not moving to much up or down.So you and I both hold 10000 shares. you are long so in theory you owe them $10 times 10000 shares = $100,000 and they charge you interest say 6.5% divided 365 per dayso you are charged $17.80 a day for holding the position.
I on the other hand am short and so I do get 4.5% (i think) which comes to $10.95 leaving $7 odd for our friends who hold the bet. That is $7 a day.

3) Say BHP goes to $12.00 and you and I decide (independently of each other of course since we do not even know each other) to get out.You are selling now since you are long and you will get $11.98 so you have made$1.98 times 10,000 share = $19,800 . Good for you and horay.
I on the other hand am buying and my account looks like this . I am paying $12.02 a share meaning $2.02 loss
times 10,000 shares = $20200
So out of my $20,200 you will get your $19,800 leaving $400 for good old D4F ( and you though that the F ment Free did you not ). If we held our position for a month there would be odd $534 interest debited from your profit and $328 odd credited to my acoount leaving good old D4F another $200 odd.
All in all D4F made $1000, having itself no risk whatsoever and what more they would have made that same amount if BHP went up down or remained steady. Good job if you can get it. No shares changed hands, and you were charged interest on nonexistent loan. Still it is all legal and above board. I like people who can make money from thin air, that is creativity.
I suppose you can call them agents since they brough you and I together to have a bet with each other and they only creamed of 5%.
Bohemian