Recent content by Chobster

Ok I’ll start again. There are a lot of people asking which firms are the ‘best’ when it comes to trading CFD’s. These people are then wrongly told that the answer can depend on whether the firms are ‘market makers’ or hedge via DMA. The theory I’ve read time and again goes something like this...

Nearly! I did happen to study accounting & finance as an under grad but that was many years ago now. I do also an MPhil in Finance so I’m not a total retard. My results on optimising finite difference methods to price path dependent options can still be found rotting somewhere up at Lancaster...

The present value of the futures price is the spot price. If this condition is ever broken then an arbitrage opportunity arises. What about Backwardation? Why should this doesn't matter. Where the cost of carry or yield is greater than the risk free rate then the futures price should rightly...

I apologise for being patronising. My explanation was only meant for people who are confused by this market maker/DMA fallacy. The semantics are irrelevant but whatever you might say or think a CFD is a type of futures contract or if you prefer a futures contract is a type of CFD, it doesn’t...

I apologise for being patronising. My explanation was only meant for people who are confused by this market maker/DMA fallacy. The semantics are irrelevant but whatever you might say or think a CFD is a type of futures contract or if you prefer a futures contract is a type of CFD, it doesn’t...

I notice that everyone seems a little confused on this. Therefore to settle the debate for you all, the difference between DMA and market makers is irrelevant. It only makes a difference when the underlying market is closed. I hope some of you at least will find the following explanation...