Switching to CFD's

ffsear

Senior member
2,167 446
Having now been put on dealer referral by City Index, IG and Capital spreads, spread betting is no longer a viable way for me to trade with my method. I can't be bothered to work my way through the remaining spread betting companies so am i right in amusing that CFD's is the next best option for me? (average 5 trades a day, held anywhere from 2 minutes to 4-5 hours)

Having only ever used spread betting, I know very little about CFD's so was hoping someone could point in the right direct, perhaps a decent article that explains it all.

Mostly I want to know what 1 cfd contract is in terms of £pp. I.e If I was trading between £15-£20 via sb, how many CFD contracts would that be (on the FTSE and DAX) Or does it change with the value of the instrument itself??

Confused! :eek:
 

tar

Legendary member
10,443 1,313
It varies from instrument to instrument and from broker to broker , CFDs are not futures exchange contracts , anyway , you will face the same problems if you traded cfds with your current brokers , no difference between cityindex SB and cityindex cfd , just another wrap for a market maker product .

You can go with LMax they have indices cfds - mini cfds available - traded between traders and LPs . Or you can go with IG DMA cfds , these are mirrored cfds for shares traded on exchanges : LSE ... etc . Anyway i assume you want to trade indices ? I recall IG has mirrored cfds for full futures contracts : FTSE , Dax .. etc , you can email them .

Ftse futures contract is 10 pounds / point .
Dax futures contract is 25 euros / point .
Dow emini futures contract is $5 / point .
... etc .
Yes you can trade mini cfds with Fxcm , IG , city .. etc , but these are market makers products - like SB - .

The answers to your questions may vary alot and there are many details involved , unless you specify what you want to trade and at what size ..
 
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ffsear

Senior member
2,167 446
Cheers. FTSE and DAX only so I guess i'm looking at 1 contract on the DAX and 2 on the FTSE.

LMAX was top of my list so signing up now.
 

tar

Legendary member
10,443 1,313
Cheers. FTSE and DAX only so I guess i'm looking at 1 contract on the DAX and 2 on the FTSE.

LMAX was top of my list so signing up now.

Ok then that's easy and you can trade mini cfds with Lmax . Just bear in mind that the values i gave you is for full futures contracts traded on exchanges , with Lmax it would be different .
 

lexcorp

Experienced member
1,250 298
what is it about your trading that made them put you on dealer referal? you say your trades typically last 2min to 4hrs. I thought they only put you on referal if they thought you were trying to exploit a slow feed or something, and closing trades after a few seconds of entry.#

p.s - i'd just open a futures account with ninjatrader brokerage or something
 
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tar

Legendary member
10,443 1,313
"LMAX Professional CFDs are based on 10% of the notional value of the underlying instrument."
 

ffsear

Senior member
2,167 446
. I thought they only put you on referal if they thought you were trying to exploit a slow feed or something, and closing trades after a few seconds of entry.#
something


Thats what i thought, and I don't think my trade size was large enough to cause a problem. On occasion I have traded over £50pp and think perhaps that caused some kind of red flag? Either way, with City, on occasions its taken over a minute to for the trade to go through. And with Capital i've actually had to log out and back in again because I thought the platform itself had crashed.
 

DowJones

Experienced member
1,073 391
Having now been put on dealer referral...
Mostly I want to know what 1 cfd contract is in terms of £pp....Confused! :eek:

Good to hear - I know the experience well.

Yep, as mentioned above, the CFD spec will vary on the provider and asset. If you tell me what assets you want to trade, I'll happily provide the LMAX info for you if you require it. Here's a couple for starters:
Dax: 1 x Germany30 CFD: E2.5/pt (vs E25/pt FDAX)
FTSE: 1 x UK100 CFD: £1/pt (vs £10/pt Z)
Nasdaq: 1 x US Tech 100 CFD: $10/pt (vs $20/pt NQ)
SP500: 1 x US SPX 500 CFD: $25/pt (vs $50/pt ES)

My guess is you'll find a bunch of other benefits in this move. I would also expect your PnL to increase significantly (mine did).

Hope it continues to go well.
 
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Als

Active member
194 3
Cheers. FTSE and DAX only so I guess i'm looking at 1 contract on the DAX and 2 on the FTSE.

LMAX was top of my list so signing up now.

Looked at demo LMAX before as well
high margins for dow and dax ! (simply low leverage)
spreads are quite wide
commission? did not even bother to ask but believe it is lofty

my choice is to trade through IB of former bas...tard GFT (is it GAIN now?) with globex liquidity

two IBs

WHselfinwest
6 euros (3+3) commission per trade (indexes) regadless of volume
but segregated accounts and 6 offices

and fxflat
(indexes commission free)
small german broker

good platform (and MT4 is also available )
1 euro per point
leverage 1/200 so around 50 euros margin for 1 cfd (dax)
DMA
dow and dax 1 point spread session time

demo tells everything
live?
well.........not without interference of dealer plugin
but execution is tolerable
(after all IBs are not responsable for this prosess)

regards
 
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DowJones

Experienced member
1,073 391
Looked at demo LMAX before as well...
commission? did not even bother to ask but believe it is lofty

my choice is to trade through IB of former bas...tard GFT (is it GAIN now?)...

I love the high quality research on this site... :cry:
 

Als

Active member
194 3
I love the high quality research on this site... :cry:

wrong irony.........

when u compare same points gain in money sense of two demos
say lmax/fxflat reflected on your balance u'll have no wish to talk about other conditions
especially if u are offed childish form of charting
 

DowJones

Experienced member
1,073 391
wrong irony.........

when u compare same points gain in money sense of two demos
say lmax/fxflat reflected on your balance u'll have no wish to talk about other conditions
especially if u are offed childish form of charting

I've read your posts a couple of times and I have absolutely no idea what you've just said. Remarkable.
 

yellowfloyd

Active member
109 2
Having now been put on dealer referral by City Index, IG and Capital spreads, spread betting is no longer a viable way for me to trade with my method. I can't be bothered to work my way through the remaining spread betting companies so am i right in amusing that CFD's is the next best option for me? (average 5 trades a day, held anywhere from 2 minutes to 4-5 hours)

Having only ever used spread betting, I know very little about CFD's so was hoping someone could point in the right direct, perhaps a decent article that explains it all.

Mostly I want to know what 1 cfd contract is in terms of £pp. I.e If I was trading between £15-£20 via sb, how many CFD contracts would that be (on the FTSE and DAX) Or does it change with the value of the instrument itself??

Confused! :eek:

Hi

on Spread bet if you did £10 a point on the FTSE, you do on maxi contract which is exactly the same, a maxi is worth £10 a point,.

On Equities £1 a point is the equivalent of 100 shares. So if you did £10 a point on BP you simply do 10 X 100= 1000 shares in BP.

So you buy 1000 shares in BP.
 
 
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