Can you give me the underlying of 1 cfd that you can short that will give you the person short the shares the dividend. I would like to investigate this further. Agreed insanity on the high leverage that is what I said.
:lol: In my wildest dreams! Same as shares - long receives divvy, short delivers divvy. However, here is the kicker - leveraged finance is settled daily. Long pays interest, short receives interest. Yes, that is correct - when you short sell CFD's, the interest on money owing from the sale is paid to the short seller daily. You get paid to hold a short position, which is miles away from costly time decay of options. Only if you use it recklessly.
I always watch iGold Advisor's videos on YouTube ... For those who haven't seen any of his analysis videos .. definitely worth a watch. Here is his latest videos - February 10 - where he discusses both the Gold and Silver Markets and trends. [youtube]http://www.youtube.com/watch?v=HLN3a46XJlE[/youtube]
So a cfd is only a brokerage account to trade in that allows a very low margin requirement and no brokerage fees. I would be careful dealing with one of these companies then because the reason for margin requirements isn't your safety it is for the brokerage houses safety and if they go bankrupt because of someone else's poor trading skills you will lose all of your money as well. Now I go back to the same statements as earlier regarding a put being better than short selling and since cfd are just leverage and the definition of leverage is just amplification of your gains or losses. A bad trade that loses $100 doesn't become a bad trade because the requirement to put the trade on was $10 versus $1 it is the same trade with the same total risk.
if considering the knock and out, with silver fix like that, the lost will be complete in no time. :lol: market liquidity is very important to trade, while manipulated... there is always too many dark rooms to get stuck in
I'm guessing you might be a US citizen since you know about options and not CFDs, which case unfortunately you can't as CFDs are illegal for US citizens.
My silver short position is deep water now, crap. Commercial traders tend to have deeper pocket than I have. So I decided to double down my silver short @15.72, and I would like to see how Swap dealers unwind their short position in the following weeks.
I think the silver chart looks like a cup and handle forming. If so, once at $16 or so we will drop to form the handle, then up past $16 if we are in fact in a bullish cycle again (short term, long term?). If not bullish then we go back in the $14s and maybe lower. I have no clue which it will be. Good to see you back Leon. Jim
Future seems to be looking a bit better for Leon with silver now at $15.34. Are you getting close to break-even?
If he literally doubled down his break even will be around 15.22. So he will probably come out of this looking good. I at least hope so. Only for selfish reasons though. I am wanting to buy some and wanting to see the drop.
Yes, something I have followed closely. Discussion at http://forums.silverstackers.com/topic-71073-chart-analysis-videos-igold-advisor-on-youtube.html if you want to talk about the information and ideas contained in his videos. Also like his new iGold Power subchannel.... should be very useful to many of us in here.
No. Profits and losses are marked to market daily, so no chance of a bad trade getting out of hand. Agree. That was my point.
Swap dealer is equivalent of market-maker in this rigged futures market. How can they lose money? They're sitting on massive short contracts, and they have to cover them somehow with a profit. I am simply following them. Is it a good time to buy silver? I would wait until swap dealer's short/long ratio reduces to 1:1. So far it is more than 2:1. It's gonna take some time, be patient.
