I am new to CFD. The intention is to hedge a share holding that you owned. During a rights issue news, usually share will plunge the new day or next instant. Does it make sense to hedge the stock by selling CFD. E.g. a share is priced at $1.10, right after the news comes, i sell CFD at $1.00 and it plunge further to $0.80 or more. Does it make sense to hedge it like this?
SELL CFD - News on Rights Issue
in Shares and ETFs
Posted
Hi Guys,
I am new to CFD. The intention is to hedge a share holding that you owned. During a rights issue news, usually share will plunge the new day or next instant. Does it make sense to hedge the stock by selling CFD. E.g. a share is priced at $1.10, right after the news comes, i sell CFD at $1.00 and it plunge further to $0.80 or more. Does it make sense to hedge it like this?