I’m not sure you get my point. It’s about funding costs. Let me explain. Say if a CFD provider were to let you on for size, 1M shares at 25%. They might do this but maybe not. Those levels they give are just a guide and would be the max subject to their overall exposure.
So you are long 1m shares at $1. That’s $1m worth of exposure and you have to put up a minimum $750k. Of course you’d have to put up more otherwise you’ll get hit with margin calls all the time so let’s assume a 10c per share buffer, that’s $850k and a $150k loan. Now CFD companies charge about 3%pa on longs on your whole position size, that’s $30k pa. That’s 20% on your $150k leverage. No rational person would pay that for leverage.
Local News, page-1188
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Last
$1.63 |
Change
-0.055(3.27%) |
Mkt cap ! $418.8M | |||
| Open | High | Low | Value | Volume |
| $1.66 | $1.67 | $1.63 | $376.3K | 229.7K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 10338 | $1.63 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.64 | 51400 | 2 |
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| Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
| KCN (ASX) Chart |