trading for a living, page-136

I personally would not trade CFD's as there are quite few drawbacks, mainly the spread between buy an sell is often to large, sometimes you will not get filled at the price offered when you wish to enter and also you are really just buying a betting slip, not actual shares. If you are long in CFD's for for some time the interest charged is huge relative to your initial investments. It is charged over the total value of the stake and can wipe out your investment even if the share price did not drop, just stayed the same. Even if you are short, there is some interest charge at least on ASX CFD's and so the promoter makes a handsome profit for managing a book of bets between participants. Occasionally the promoters cover some bets by buying or selling an option opposite to your position but mostly they balance long and short positions between their customers without having to go to physical market.

I prefer Exchange Traded Options because they are based on physical stock. On expiry any still open positions are exerized and actual shares change hands.
The transaction costs can be a killer and can eat in to your profits or add an insult to injury if getting out at loss. They could be few percent compared with physical shares where they are about 0.11% if you trade decent parcel.