Hey everyone,
I was wondering if you could give me a hand understanding CDFs better and how it works on T212, I’ve been looking around but can’t seem to find enough good material.
Also, will options ever be available on the platform?
Thank you
"Contract for Difference”, or “CFD”
The major difference between CFD trading and equity trading regards ownership. When you trade a CFD you do not own the underlying asset.
CFD trading works a little differently compared to the traditional share dealing.
When you buy a share of a company you become an actual minority owner to this company,be it a very small one. With CFDs, on the other hand, instead of receiving an ownership stake of the underlying asset, you are merely speculating on the price of the
particular instrument: whether it will move up or down. If the price moves in your direction you’ll make a profit. If it moves against you, you’ll make a loss.
CFDs are a leveraged product, which allows you to open a position by depositing a small percentage of the full value of the trade. With equity trading, you purchase the shares for the full amount owing by either using individually-held electronic funds or margin loan.
CFD market orders are immediately executed whereas when placing a market order for
equities you need to wait for the settlement.
This is copied from a site witch in my opinion explains good, i hope you will find this helpful.
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