Jump to content
  • 0

dealing share cfds


Guest fried

Question

when you are dealing share cfds at a certain price, 

its not like buying the actual shares so....

does this mean when you decide to open a position it will open straight away, 
unlike shares where you would have to wait for a seller to sell the shares to you?

so it would be possible to open a position on a share cfd at a million dollar worth of shares because you are not actually buying them???

 

im just first time on cfds and its been quite difficult to grasp its concepts

 

Link to comment

5 answers to this question

Recommended Posts

  • 0

@fried, you are more or less right in that you are not buying the underlying asset but a derivative of the underlying and the derivatives are far more liquid though bear in mind they are linked to the underlying and so will also sometimes suffer from illiquidity problems and therefore partial or non filled orders. Whether trading the underlying or the derivative there must still be someone to take the other side of the trade.

 

 

Link to comment
  • 0
5 hours ago, Caseynotes said:

@fried, you are more or less right in that you are not buying the underlying asset but a derivative of the underlying and the derivatives are far more liquid though bear in mind they are linked to the underlying and so will also sometimes suffer from illiquidity problems and therefore partial or non filled orders. Whether trading the underlying or the derivative there must still be someone to take the other side of the trade.

 

 

then what are you trading in cfds if there were to be similar issues as shares and are you able to view these on a bid/ask quote window like in shares so that you can decide your entry points without your order being partially filled? 

Edited by fried
Link to comment
  • 0
Guest AbDXB1345

@Caseynotes and @TrendFollower

I was pondering the Volume indicator on IGs platform, I assume this is this based on volume of CFD contracts/shares and not a reflection of the market? This seems to be the case with commodities, but when I see the volume of millions of shares I wonder if it is in fact based on the market?

Link to comment
  • 0
5 hours ago, fried said:

then what are you trading in cfds if there were to be similar issues as shares and are you able to view these on a bid/ask quote window like in shares so that you can decide your entry points without your order being partially filled? 

@fried  you are trading contracts for the difference in points between opening and closing the trade and that market is far larger than the underlying. You would need to be trading in very large size not to get filled in the cfd, futures or options markets, far more than trading directly in the underlying and your entry points should always be based on the trading plan whether fill, partial fill or no fill at all.

Link to comment
  • 0
2 hours ago, AbDXB1345 said:

I was pondering the Volume indicator on IGs platform, I assume this is this based on volume of CFD contracts/shares and not a reflection of the market? This seems to be the case with commodities, but when I see the volume of millions of shares I wonder if it is in fact based on the market?

Volume is a tricky one due to whether the asset is being traded on one exchange, multiple exchanges or no exchanges at all. See the answer given in the thread linked below (click arrow in header).

Also consider the the final volume count can come in very much latter than the actual bar close.

 

 

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • General Statistics

    • Total Topics
      23,599
    • Total Posts
      96,961
    • Total Members
      44,169
    • Most Online
      7,522
      10/06/21 10:53

    Newest Member
    Jag
    Joined 03/12/23 16:16
  • Posts

    • Trade statistics of the 'Triangle 8th' system as of 12/03/2023 Gain: 102.00% Profit: 781.52 USD Funds: 1,400.18 USD Balance: 1,781.52 USD Beginning deposit: 1,000.00 USD Withdrawals: 0.00 USD Top-ups: 0.00 USD
    • Name of stock - Vox Royalty   Name of Stock Exchange - NASDAQ   Leverage or Share dealing - Leverage   Ticker - VOXR   Country of the stock - Usa   Market Cap - 100M
    • It is a best practice to buy dip and sell high but this strategy mostly doesn’t go as planned because you can’t predict the final bottom. Some traders BTD anticipating a potential pullback which mostly doesn’t happen and this force some into panic selling. DYOR is mostly advisable but some people fail to know which analysis they should focus more on. When deciding to hold a token for a long-term FA is very important and its cardinal point should be thoroughly scrutinized before making such a decision. These points include; Whitepaper, Road map, and Usecase. These points have a huge impact on deciding how long to hold a project and also booast your confidence in the project's bullish potential.  The first principle in this industry is “invest what you can afford to lose" though many neglect this principle as such when a project is going through a price correction they panic sell and sell at a huge lost. Most normal regret their decision later when they see the project back on track. Once you adhere to the first principle you hardly fall victim to panic sales. Note that it is mostly not advisable to hold meme tokens una less you are convinced because meme goes with the hype and finds it hard to retest its ATH once the hype is over.  Anyway what are your trading strategy and principles you adhere to most?
×
×
  • Create New...
us