Personal Finance & Money Stack Exchange
Personal Finance & Money Stack Exchange

Questions tagged [cfd]

A contract for difference (CFD) is a financial contract between two parties in which the seller agrees to pay the buyer the difference between an asset's current value and its value at a time stipulated in the contract.

A contract for difference (CFD) is a financial contract between two parties in which the seller agrees to pay the buyer the difference between an asset's current value and its value at a time stipulated in the contract.

CFD's are available in most financial markets except the United States.

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Buying a small amount (e.g. $50) of stock via eToro "Social Trading Network" using a "CFD"?

On LinkedIn I saw an ad claiming I could buy some AAPL stock for as little as $50. I clicked and came to a site called eToro that calls themselves a "Social Trading Network". It appears the buying of Apple stock for just $50 is using something…
wondering
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Is CFD trading a good idea?

I am planning on speculating in forex and possibly indices, however due to my lack of experience I don't want to invest too much. With £100, you can't really get very far with indices, and profit in forex would be nearly unnoticeable. For this…
DividedByZero
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Is CFD a viable option for long-term trading?

Something really does seem seedy that if I invest $2500, that I'll make above 50k if the stock doubles. Is it really that easy? Looking at the opposite side, yes my investment can vanish from just a small drop in the price however I have funded my…
Francis Kim
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Financial leverage - why am I only responsible for my securities?

I'm a newbie in trading and I've been reading about the financial leverage mechanism when trading CFDs. From what I got it works by letting me trade on margin by moving greater amount of money lent by the brokers. I also got that I'm responsible…
Dean
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How does a CFD work behind the scenes?

I'm curious as to how the Contracts For Difference (CFDs) work. I understand how they work for the consumer side - you enter into an agreement to pay/be paid the difference between the stock price at time of entry and exit, but how does the broker…
ChrisJ
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Is it possible to trade CFD without leverage?

I'm new to trading. Based on what I read, trading CFD involves high risk because of leverage. Is it possible to trade CFD stocks without leverage (in Etoro for example)? If this is possible, then I would lose/gain only the percentage by which the…
EasternRiver
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How can a broker support mass copytrading with a $100 investment when there is a larger account minimum for day-trading?

My understanding of the U.S. rules for day-trading is that you must have $25,000 in equity at the time you make a day-trade. Yet, a broker like eToro offers "copytrading", which mimics another investor's trades autonomously — with a much lower…
Ryan Mortensen
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Ex-dividend dates for Nikkei and Dow Jones on CFD and Spread Bet Markets?

I've found a few ex-dividend date sites for the Dow Jones (can't find any decent ones for the Japanese Nikkei Index). However the ex-dividend dates don't seem to match when I get dividend payouts on my CFD/Spread bet account, the US seems to have…
User101
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Overnight charges for brokers holding stocks?

I'm trying to learn about stock markets. I eventually want to invest a small amount over a long period. Yet, I notice on a lot of broker sites that they tend to charge an overnight fee for any stocks held over night. I presume this is every night…
Karri
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Is avoiding fees commonly found with CFD trading possible?

I'd like to push my trading experience a bit. I've been looking into opening an account with a broker that offers automated trading (I'm a programmer and would like to use my own trading algorithms). It seems for an under 25 the joining fee is…
Ally
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What am I actually buying when trading in CFDs?

I'm trying to figure out what is actually happening when I'm trading in CFDs (Contract for Differences). Investopedia says: This is generally an easier method of settlement because losses and gains are paid in cash. CFDs provide investors with the…
Jinx
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Is possible to short sell stocks without using CFD?

the title is all my question :) Is possible to short sell stocks without using CFD?
Enrique
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Interactive Brokers CFDs without leverage

I would like to buy a certain stock that is not available in my currency and also an index fund. I see there is the option to buy it with CFD but I cannot find it in the documentation or through search if it is possible to buy this without leverage…
arisalexis
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Forex & CFDs good profits, but why?

First off, i am a total newcomer to trading. I opened an account with an online broker, am using their App with a 10k demo account. I am under no illusions when it comes to trading. I am not interested in doing real trades until i spent at least 2…
SQRCAT
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CFD market makers: How is the price coupled to the underlying security?

If I understand it correctly, there are two different CFD provider modes of operation: DMA (direct market access), where the provider will immediately hedge all positions with matching trades on an exchange, and market making, where he takes on the…
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