How do Trading 212 deal with their profitable clients in CFD? I know losing positions go straight to the broker and with winning positions they pay you. How do Trading 212 deal with the 24% of clients who can consistently make money?
I am not CFD expert. So maybe my logic is completely flawed. If so, my apologies.
But it doesn’t make sense to me that t212 makes money on spread when you win “bet”. They just lose less money as you need to overcome bigger hurdle aka spread.
As my understanding it is Trader vs t212, there is no man in middle, no actual securities trade taking place, just bet if the named security price will rise or fall…
@GetRichQuick A broker doesn’t generally look at clients individually but rather the overall exposure that must be controlled due to regulation.
If there’s an issue with exposure a broker can hedge if they decide to, which means that not every win is a broker’s loss & vice versa.