How close does a stock CFD match the underlying stock? | Forex Factory

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How close does a stock CFD match the underlying stock?

  • #1
  • First Post: May 8, 2010 2:17pm May 8, 2010 2:17pm
Are stock CFD's worth trading? Does anyone have experience trading them through alpari? Thanks
  • #2
  • May 9, 2010 6:20am May 9, 2010 6:20am
CFDs are not legal to trade in the US as of yet...
Not sure they will be soon either.

I believe one of the main reasons is the ability to sell short firstly, or go long w/o actually owning shares.

US has huge stock markets and pure speculation adds to the demise of companies on a hunch or for that matter insider.........

Why not just trade FX?
XAU-XAG/USD_Gold n Silver Trader's Thread = Technicals, Fundamentals & News
  • #3
  • May 9, 2010 1:36pm May 9, 2010 1:36pm
Quoting XTrade
CFDs are not legal to trade in the US as of yet...
Not sure they will be soon either.

I believe one of the main reasons is the ability to sell short firstly, or go long w/o actually owning shares.

US has huge stock markets and pure speculation adds to the demise of companies on a hunch or for that matter insider.........

Why not just trade FX?
Hey X, thanks for the response.
Are you sure its not possible to trade stock CFDs? I know people trade all sort of other CFD's, like gold etc.
I would just stick to FX, but CFD's seem like a good option too. They are also actually cheaper to trade, spreadwise, for the moves you get. Would love to be able to trade them, and risk half of what I normally do, but take twice as many trades. Would lower my variance a lot, and make day to day trading a lot less of a rollercoaster.
  • #4
  • Last Post: Mar 14, 2020 10:19pm Mar 14, 2020 10:19pm
Quoting XTrade
CFDs are not legal to trade in the US as of yet... Not sure they will be soon either. I believe one of the main reasons is the ability to sell short firstly, or go long w/o actually owning shares. US has huge stock markets and pure speculation adds to the demise of companies on a hunch or for that matter insider......... Why not just trade FX?
They ban CFD's because it's a bet, the money used to create a CFD (contract-for-difference) is removed from circulation and must be held in escrow by the broker and not in a bank deposit. This alternative to demand for spot positions reduces the demand for spot positions and does not impact prices, thus it can not create asset bubbles. CFD's are banned because they don't promote asset bubbles, elementary.
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