more about cfd

iwan · Posts: 6 Join date: 2008-10-11

http://en.wikipedia.org/wiki/Contract_for_difference

I still confused, I need more info about:
- any interest fee
- validity of contract

please share

**orangtua** · Posts: 117 Join date: 2008-08-06

iwan wrote:

http://en.wikipedia.org/wiki/Contract_for_difference

I still confused, I need more info about:
- any interest fee
- validity of contract

please share

in cfd, u pay only a deposit of 5% to 40% for the position u open. therefore, the brokerage house will charge interest of libor plus some % per annum. % depends on brokerage house. your cfd contract has no time limit and therefore time decay. eg, if u buy 1 AAPL cfd share at $90, u pay $9only. if interest is libor (2%) plus 2.5%, your interest charge is $0.011 per day. 1 contract of cfd is 1share.

you may get more information if u visit www.cityindexasia-com and to also come to our cfd course on 18th Oct, Sat, from 1pm to 4pm at Hotel Ciputra for Rp350,000only. I can also then help you to open your account in city index asia for free. Photocopy documents required are KTP and credit card bill/PLN bill.

hope this information is useful.

regards.

iwan · Posts: 6 Join date: 2008-10-11

Let share here:
BENEFIT of CFD:
- You could short/ naked sell share, indexes, oil (but not all share).
- Margin
- Leverage

DISADVANTAGES of CFD:
- Risky ? why?

Please share your opinion, this will attract more traffics and live to our forum.

**andre313** · Posts: 5 Join date: 2008-09-08

For all of us who has been trading on US market , CFD commission is quite expensive , Like MON @ $75-90 cost about $ 25 -29 buy/sell ( 0.3 % ? ) , as compared to $1 with US brokers.
Trading platform is not as good as US broker and execution is sometimes slow ( web based platform usually slow ), need to requote . Online trading is sometimes not available until you complain , live chat .
I think CityindexAsia should do something to improve the platform in the future.