Real vs artifical? Am I correct?

[Carlosyabrudy]

I tried contracts for difference demo, and was successful in it with good money and risk management and made a good profit on the demo.

I then started to spread bet but none of what I had learned seemed to turn my profit to loss ratio higher than 3:1 or 3:2.

Spread betting - Candlesticks and market movement is created by the spread betting company therefore a lot of patterns and reversal patterns will not apply and it will be harder to guage market sentiment. Easier to lose money and markets are designed for most people to lose out anyway. On top of that up or down moves are harder to confirm because of NO VOLUME INDICATORS being present. Randomized spikes that are not present in real market data and stops are hit when the price has not reached the set stop.

CFD - Same thing but it mirrors the market on Level 2 Data and you can see the volume being traded. On top of this real market sentiment is reflected and you trade against everyone else instead of trading against the firm. You pay tax on anything over the threshold (which is around 8-9 thousand).

Am I right?

What's the point in spread betting when you can go for CFDs...

Better to be taxed on something than to make losses continually......

 

[Cactrader]

I think you're probably right.

I did CAC futures contracts and lost out because of the fast rise in losses when you're going the wrong way. I'm now testing a CFD demo using micro contracts and for the moment all is well.

I agree with you that the CFD prices are sometimes a long way away from the real prices and for that reason I use separate graphic software to get the real picture.

 

[Carlosyabrudy]

I think you may have misunderstood Cactrader,

CFD prices are the real prices mirrored but Spread bet prices are manufactured by the company....

I always check real prices with everything im doing...

 

[Cactrader]

Sorry, Carlosyabrudy, I think I did indeed misunderstand. I happen to live in a country where spread betting, as far as I know, doesn't exist. I thought the use of CFD's and sb were the same. Am going to look them up on the web

 

[gle101]

I think you may have misunderstood Cactrader,

CFD prices are the real prices mirrored but Spread bet prices are manufactured by the company....

I always check real prices with everything im doing...

They both should follow the underlaying asset, still they are both provided by the SB company or CFDs broker, and as you are pointing out, the price needs to be monitoring. Some CFDs are issued by the stock exchange and are not "manufactured", for instance some instrument on the Australian stock exchange (ASX). In this case you have an issue with the liqvidity of the CFDs.