CFD, Contracts for difference. The house (CMC et al) have set up their own betting ring. You as a mug punter have made a bet for the stock to go one direction, the bookie (CMC) hedges this bet against the up side, ie. buys an option contract to reduce the houses exposure. In the mean time he makes money from brokerage(goes directly to profit because it does not go through the ASX platform but thier own) and money from investing the money you have with them.
What happens if they collapse? Well if you went short and made a heap of cash you would still be an unsecured creditor as the house has no money to pay you out.
If you went long and want to get to your money, you can't because you own nothing except the debt the house owes you. Again unsecured creditor.
So who gets the money?
1)Recievers
2)Employees (yes that includes the directors)
3)Secured creditors (ANZ et al)
4)You
5)Share holders
Damn sounds like a whole lot of mess to me.
CFD, Contracts for difference. The house (CMC et al) have set up...
-
- There are more pages in this discussion • 25 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Add ASX (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$60.90 |
Change
-0.470(0.77%) |
Mkt cap ! $11.80B | |||
| Open | High | Low | Value | Volume |
| $61.08 | $61.08 | $60.58 | $14.59M | 239.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 8 | $60.89 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $60.92 | 16584 | 6 |
View Market Depth
| Last trade - 16.10pm 05/07/2024 (20 minute delay) ? |
| ASX (ASX) Chart |