Agreed...CFD's are great when the stock goes up and up and it does so smoothly....violent dips or even slow and steady falls are not your friend if you have CFD's. (unless you short them but that's a whole different ball game and there wont be that many that offer the Put equivalent on PAR).
They offer great leverage so a small amount controls a decent amount of underlying shares and you get the benefits of the SP lifts including dividends! After just a few days or weeks of good lifts you can develop a powerful and meaningful position using these things and the reinvestment of the same into cfd's only adds more power.
Use them very carefully as PAR or any other stock can and has come down...it's those falls you have to watch out for. Make sure you have a good buffer that you don't draw on to let the stock 'breathe' and so you don't get margined out.
This and margin lending is not for the faint hearted. You have to be well versed with how they work and what can go wrong. The stats show that the number of successful CFD traders and holders are amongst the very few in number. You won't find such true stats and stories in the glossy CFD banners that crop up.
Straight shares, though not leveraged, is so much easier...just set and forget...if there is a mild dip you don't give a hoot! (Hoot is a nicer word).
Not advice.
PAR Price at posting:
$2.86 Sentiment: Buy Disclosure: Held
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