Effect of CFD/Spreadbetting on market

[black prince]

Hey everyone im new to trading but have been having a good look around - I have a few questions.

Due to the nature of the above im guessing slippage wont happen when you exit a trade since you arent actually buying/selling any of the underlying security?

 

[gle101]

Hey everyone im new to trading but have been having a good look around - I have a few questions.

Due to the nature of the above im guessing slippage wont happen when you exit a trade since you arent actually buying/selling any of the underlying security?

Yes one can always dream. From a technical point of view you are right but trading with a market maker can give you another experience. With fixed spread it should be more likely not giving slippage, but with a variable spread slippage is more likely because of widening of the spread. I am not talking about a natural gap, that is another issue altogether.

 

[Hate2Lose]

Hey everyone im new to trading but have been having a good look around - I have a few questions.

Due to the nature of the above im guessing slippage wont happen when you exit a trade since you arent actually buying/selling any of the underlying security?

Why don’t you look for a provider that offers you Direct Market Access trading? That way you shouldn’t get slippage when buying/selling positions.

Of course this is only available with CFDs and only some providers offer this

 

[gle101]

Why don’t you look for a provider that offers you Direct Market Access trading? That way you shouldn’t get slippage when buying/selling positions.

Of course this is only available with CFDs and only some providers offer this

Are you sure about this? Either you can get slippage or trade rejections.

 

[kalott]

http://www.trade2win.com/boards/brokerages/18316-interactive-brokers-141.html