Anyone clued up about CFD trading?

[joeyjojo]

You do realise with that kind of leverage they will be asking you to add more funds as soon as the share price dips slightly? That's presuming you don't have any cash sitting in the account.

With your stop loss at $14 you'll be down around £1000?

You guys talk as if OP is a hedge fund manager. We're all just having a bit of fun here, lighten up!

Not so light considering mr tommo's post.

 

[Theophany]

I'm not even sure why joe public is allowed to play around with such instruments. This thread highlights why.

 

[Nerusy]

Not so light considering mr tommo's post.

His stop loss is at at around >25% decline, I doubt it will get hit in a month time, he is more likely to get stuck at around this price level.

£1,000 is not exactly life saving, I am fairly sure OP realizes that he is gambling and just having a bit of fun.

 

[Spit]

The other little amateurish thing you have done is set your stops at round numbers ($14,$15) the market makers love taking out these stops.

 

[Theophany]

The other little amateurish thing you have done is set your stops at round numbers ($14,$15) the market makers love taking out these stops.

http://www.bloomberg.com/news/2013-...at-4-p-m-in-london-provide-rigging-clues.html

The big boys will always screw the little guy one way or another.

 

[isonomicjedi]

You are already on a road to failure getting emotional about the stock.

Never seen that before but love it.

 

[Theophany]

The above goes hand in hand with the data that backs it up:

 

[thepharcyde]

CFD and a zero understanding of markets will always end in losses. There are so many variables that impact shares prices and indices it's only those making money that are hedging to leverage any loss.

Personally op if you have money, look into funds and a Fund Manager to invest your money in a BRIC fund if the associated costs are affordable.

 

[Johnnytoxic]

This Syria thing is unsettling now. I know it would affect FTSE and Wall Street but how much does it affect individual companies.

 

[Destination]

What are your values now, at the end of day three?

 

[Johnnytoxic]

Closed at 18.88 was a better day indeed.

 

[Destination]

I see that, I just looked at weekly and daily figures for them, this time last year they were sitting at 8.00 a share, now it is 18.88. How much per day does it cost? Compound?
Is that cost based on your deposit or the entire leverage?

 

[kalath1032]

This Syria thing is unsettling now. I know it would affect FTSE and Wall Street but how much does it affect individual companies.

Really I am surprised if the markets in London / US would be effected by Syria. It not like Egypt and the Suez Canal.

 

[Nerusy]

Closed at 18.88 was a better day indeed.

Awwwwwww why, I thought you wanted to hold it for a month, carry cost couldn't have been large.

Oh well I guess it was a wise move afterall, wise but boring

 

[Destination]

The shares close at 18.88 not he closed is account at 18.88

 

[Nerusy]

The shares close at 18.88 not he closed is account at 18.88

Ah good to hear!

 

[Sin_Chase]

Some comedy in GD...subbed!

 

[Johnnytoxic]

I see that, I just looked at weekly and daily figures for them, this time last year they were sitting at 8.00 a share, now it is 18.88. How much per day does it cost? Compound?
Is that cost based on your deposit or the entire leverage?

It's about £1.50 a day to keep open.

0.03% a day of the total share value I believe.

 

[dowie]

Compound?
Is that cost based on your deposit or the entire leverage?

its based on the purchase of the entire position as stated earlier in the thread - in theory CFD provider purchases stock on his behalf, interest is to fund this purchase, essentially he's paying for a loan for them to buy some shares on his behalf - in reality he might well be using a bucket shop style CFD 'broker' who are acting more as a counterparty rather than a broker and may or may not open an actual position in the stock as a result of his trade

 

[Strife212]

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