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Author Topic: CFD to trade on Stocks  (Read 479 times)


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CFD to trade on Stocks
« on: April 24, 2017, 05:48:41 AM »
Hi All,

A quick question seeking to learn from your experience.

For those trading stocks, is there any material issues that you see with using CFD's (with DMA access) to trade against the underlying share assuming you maintain the same risk settings. (i.e. stops in place, no emotions etc).

In my mind, doing so allows one to open more concurrent positions whilst maintaining the same risk profile (ignoring slippage etc).

In this example, say I had a portfolio of $50k with a risk per trade of 0.5% then each risk unit would remain $250, but using CFD's I could trade with leverage to avoid the higher capital constraints.

The only real risk i can see is if the market gapped the wrong way (e.g. North Korea fire a missile) and you could see larger losses than you would have if you had to provision the actual capital (which would mean you are running a smaller portfolio).

Many thanks. Appreciate any guidance you all can offer.