Hello,
I have some question that I always been looking for thier answer
1- Where does The CFD trade on ? OTC or exchange .
2 IF it is on OTC, then who is my counterparty ?
3- trade on OTC , meaning there is no clearning house, then there is a risk associate with it . in this regard how can my broker manage to redistribute wins and losses among market players? Let me suppose that I realized 1 billion dollers and my counerparty went defalut. how can my broker deal with such situation?
thanks
I have some question that I always been looking for thier answer
1- Where does The CFD trade on ? OTC or exchange .
2 IF it is on OTC, then who is my counterparty ?
3- trade on OTC , meaning there is no clearning house, then there is a risk associate with it . in this regard how can my broker manage to redistribute wins and losses among market players? Let me suppose that I realized 1 billion dollers and my counerparty went defalut. how can my broker deal with such situation?
thanks