Can you lose more than you put into a CFD trade? With CFDs (contracts for difference) due to the leverage that as a trader or speculator you can choose to involve, it is possible to lose more money on a trade than you put on margin in the first place. So yes, CFDs can go…
Are CFDs over the counter derivatives? Yes, CFDs (Contracts for Difference) are over the counter (OTC) traded derivatives, meaning they are not traded on major exchanges such as the Australian Stock Exchange (ASX). Over the counter in the case of CFDs basically means that the financial instrument is traded between two parties, for example between…
Are CFDs and Options the same thing? No, despite some ostensible similarities, CFDs (Contracts for Difference) and Options are not the same thing. In broad terms, Contracts for Difference are a contract to settle the difference between the opening and closing price of an underlying asset over a timeframe. Options are the right but not…
