CFD Trading Spreads??

hkmt

Junior member
10 0
Hi everyone

I have been trading via my ISA account but obviously I cannot do short selling there. I know that Spread Betting account or an CFD account is needed for that.

I know that on Spread Betting the spread is determined by the broker. Having considered that you are betting against the broker (any money you make is going to be broker's loss) it is obvious that the spread can easily be adjusted against you.

Is it the same case with CFDs? Or do we trade with the real market price?


I am a bit confused with that.. Would like to do some short selling with real market prices but cannot find a way to do it…

Thanks
hkmt
 

AdamTheAnalyst

Junior member
12 3
CFD's have a bid and ask spread, as well as a commission in most cases. To short sell at the real market price instead of using CFD's involves borrowing the underlying security from your broker and then selling it then buying it back (covering) at alter date for a cheaper price to give back to the broker.

Happy trading
 
 
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