CFD's - good or bad ?

[syswizard]

https://www.marketwatch.com/story/t...t-volatility-using-his-credit-card-2018-02-06
This poor kid lost a lot of $$$ trading CFD's.
I know they are risky but they do have some advantages....no day trading rules; a 5% margin.
Has anyone traded them ?
Which exchanges and brokers supports them ?

 

[fordewind]

Oh,man..what CFD`s have to do with the stupid kid?

 

[fordewind]

One of the ET sponsor - IC Markets - amazing broker, supports many CFD`s currencies,metals, etc...But it`s not for the US folks, afaik.

 

[syswizard]

Uh, Dude....he decided to leverage himself and trade CFD's instead of stocks outright.
He knew what he was getting into.

 

[fordewind]

He would`ve lost it all with the furures or stocks even faster.

 

[fordewind]

btw, to trade 1 DAX cfd with IC Markets you need 85 bucks.Damn kid is just plain asshole.

 

[cole_]

yeah they're ok but iirc all cfd brokers are bucket shops

nadex spreads are very similar but it's only up to weekly expiration

$1/tick and fully unleveraged so no margin calls

 

[fordewind]

all the fuss about cfds i think i know what.if it was allowed in the US no one would trade futures anymore.with the 10K account you can trade from 1 to 100 sp-500 cfd back and forth forever.1 spoo cfd is just a couple of bucks.how did he managed to blow up 10K!!!he couldve caught the bottom even if he added 1 contract per 10 minutes.he`s probably loaded full margin within 2 seconds.

 

[syswizard]

he couldve caught the bottom even if he added 1 contract per 10 minutes.he`s probably loaded full margin within 2 seconds.

Of course...he didn't know what he was doing....that's now obvious.
You can't mess around with these levels of volatility.

 

[fordewind]

Of course...he didn't know what he was doing....that's now obvious.
You can't mess around with these levels of volatility.

indeed.with 2 bucks per contract even martingale would work!