Would just like to absorb some knowledge about these. I opened a demo account on the saxo bank website to just learn more about how to use CFD's and learn some of the terminology. Anyone day trade these? A guy at work does and he shorts the ASX200 as a hedge against all of his long CFD trades, though he only looks at charts and follows basic rules. Im more interested to short Australian building supply companies/developers with the weakness in the housing market accelerating If so what strategies do you use etc. Also can someone explain to me what the difference between market/limit is? cheers Wout
Ssssshhhhhh! Be careful! Mention CFD's on this forum and you may be accused of being evil, immoral, a gambler, a market manipulator... and the most ironic of all - a speculator! :lol: Better you just stick to fully exposed, unprotected metal speculation! Meanwhile, take a look at these posts: http://forums.silverstackers.com/topic-22773-i-don-t-wanna-stack-i-wanna-tradeplease-help.html http://forums.silverstackers.com/topic-22890-how-to-turn-a-10oz-bar-into-a-30oz-bar-overnight.html
I meant as a hedge against my fully exposed, uninsured, unprotected phyzz ofcourse^^ I made $550 in 2 days on my demo account going long on US natural gas, I cant believe it is just over $2 when in 07/08 it was at $12 - $13$ Just another inflation proof speculation maybe.. Still learning, thanks for the links!
Wout, Looked at these myself recently and I am still uncomfortable on margin. Haven't as yet taken the plunge. I don't know anything about the Australian housing sector, but it maybe an idea to try and find out if there is an equity which runs inverse but you can just buy like a normal stock/ETF + stop, without having to use CFD, margins and all the risks that go with it?
Yea I could do that, Im still going through those two links and practising wrc's strategy with using stops and planning a trade beforehand. The margin does scare me a bit but I guess if you didnt use margin you wouldnt make much on your trades, for the first few I might just use no margin and see what happens, I cant find where I can change the margin in my demo account though..
I don't think you will find a "no margin" CFD, there would be no purpose for it. That is the definition of a CFD (Contract for Difference) - you are putting a deposit on a contract to buy or sell, not buying or selling the underlying. If you want to trade no margin, you need to trade ETF's, shares, or Phys silver etc.
Yea Im realising that now, I thought there would have been an option to at least change the amount leverage of your CFD eg instead of having 5% deposit you could choose to have a 10% deposit etc
If you want to reduce exposure, just reduce the number of contracts traded. This has a similar effect as decreasing leverage, but actually ties up less capital, without reducing the return on capital.
