Effect of CFD/Spreadbetting on market

black prince

Junior member
12 0
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

Veteren member
3,717 84
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

Active member
155 3
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

Veteren member
3,717 84
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.
 

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