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CFD Trading?

markk06 · 2007-03-15 20:24:58

Is anybody here familiar with the concept of CFD trading? Davy are now offering the service to investors. I know they are some for of derivative contract but there are a few differences including being able to close out your contract at any time, which would mean that there is obviously a large market of them. How do they…

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15-03-2007 9:24pm

#1

markk06

Closed Accounts Posts: 195 ✭✭

Join Date: February 2006

Posts: 181

Is anybody here familiar with the concept of CFD trading? Davy are now offering the service to investors. I know they are some for of derivative contract but there are a few differences including being able to close out your contract at any time, which would mean that there is obviously a large market of them.
How do they differ to any other short selling or long call postions?

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#2 16-03-2007 5:39pm
dunkamania

Closed Accounts Posts: 1,803 ✭✭✭

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comparable too a futures contract,closing requires a cpty to take an opposite position.

long call refers to buying an option,while a CFD is an obligation.These are leveraged instruements,and are not suitable for everybody

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