4 reason to use a professional CFD trading account
CFD Account Definition: Day Trading Terminology - Warrior
What is a Contract for Difference | CFD Trading| CMC Markets
CFD Trading Account - FXCM Markets
The comedy how I lost all my money in two hours
I'm trading for 11 months with pretty good success. I never traded metals and forex before, just stocks. Today when gold started to consolidate at the last hour, I decided to scalp short it with a large amount, so I opened 100 lots. I haven't realised, in forex 100 (lots) doesn't mean "100 pcs", because I used to stocks and I went full retard without knowledge. Seconds later, I realised it means 10 million dollars (1 lot = 100.000, and I had 500x leverage). It moved up a bit and immediately I was down £4000. I scared as fuck and rather than closing the position quickly I hoped maybe I could close break even. The market closed, and I waited for the Asian session. The gold popped like never before, and I lost all my life savings (£55000) in less than two hours. (including the 1-hour break between sessions). If I count that I lost all my earnings as well, I lost around £85000. Here is the margin call https://imgur.com/a/XY5m4ZA https://imgur.com/a/VSgmCSs https://imgur.com/pRWl5g9 IC Markets closed my position partially in every 1-2 minutes until I shut it myself at £35. You know the rest of the story. I'm depressed, crying and shouting with myself. Yes, I know I was stupid, thanks. I just wanted to share this with you. Edit: WOW THANK YOU, GUYS! I haven't expected this, but you help me. Many of you asked the same questions, I answer it here: - I live in Europe, and we usually trade CFD's, not futures. - Currency in GBP. - As you can see, this account made on IC Markets. They not just allowing you a 500x leverage, it's the default. - You can ask me why I went against the market. Because gold is way oversold? Because I expected institutions would sell their shares before gold is hitting £2000, leaving retails hanging there. Also, as I said, I wanted to scalp, not riding the gold all the way down. If I had a loss of £100, I would close the position immediately. But when I saw the £4000, my heart is stopped, and my brain just freezes. - I went for a revenge trade with my last £2k, and I don't have to say what happened. I uninstalled the app, and I give up trading for a while. - Again, in the past months, I was cautious, I lost a significant sum in March, but I managed to recover. Made consistent gains, always with SL. This is just an example of how easy is to fuck up everything you did. - I didn't come here for some shiny digital medals. I can't tell about my losses to anyone who I know in real life. I would make a fool of myself. - Anyone who attacking me that it is a scam. Well, think what you want. I feel terrible and the last thing is to answer all the messages saying "You fucking karma whore". I don't give a shit about karma.
Plain english warning about CFD trading, just something I wish someone had told me
tl;dr - trading CFD's is the equivalent of drag racing your drunk mate down the freeway into oncoming traffic. No self respecting adult would bother with them, CFD's are for cocaine-snorting thrill-seeking morons (like me apparently) who have no respect for risk management. Don't gamble with your savings. What are CFDs CFD's are 'Contracts for Difference'. Very simply, if you have a trading account with the right permissions you can trade in CFD's. Why are they dangerous Because say you trade $250, on a normal trade (ie stocks etc) if the price falls by 10% you lose $25, which sucks but isn't world ending. CFD's are NOT like that - they are 'leveraged' which just means that if you put up $50 your exposure is many many many many times larger than that EXAMPLE You buy 50 contracts on a stock that is trading at $100 a share.The stock then drops $10 in value.Your exposure is (50 * 100) = $5,000 BUT because your 'margin' is only 5% of that, the initial amount you put up is a mere $250. So to illustrate: Stock Trading Initial Investment - $250 Value drop - 10% Loss - $25 CFD Trading Initial investment - $250 Value drop - 10% Loss - $5,000 Closing remarks These things are illegal in the US for a good reason. CFD's are for suckers, don't listen to anything that you hear to the contrary. EU regulators say that 76% of CFD accounts lose money. Let me say that again, 76% of these things lose $&*#ing money. If the odds at the casino were 1:4 there is no fkn way anybody would go. When you trade CFD's you are essentially just gambling but with WAY WAY worse odds.Cited: https://www.iexpats.com/76-of-cfd-traders-lose-money-on-their-deals/ You can't make long investments with CFD's, they aren't a long-term strategy and they are not part of ANY investment strategy with a reasonable risk profile. Please don't make the mistake I did and get sucked into trading them, it's stressful as hell and it is pure bravado driven bullshit. Stay safe out there folks, times are nuts Edit 1: Formatting got stuffed up
First day trading on CFD with real money - How my day went
Hey guys, So I wanted to share my experience on CFD since it was something that was kinda scary to me. I finally put in 1000$ on my CFD account this morning. Before that I was training on demo mode and my strategy was working pretty well. MY STRATEGY: So I'm not familiar with leverage yet so I started asking myself what would be the way that I'm the most comfortable trading with leverage. I started looking for a stock that consistently grew since even a 1% a day rise could be good with leverage. That's when I realized that trading with an ETF could work. So I started looking at the S&P 500 and running the numbers. In the last year, on average, there is a a 2,47$ gap between the low and the close of SPY. So I though that if I could figure out the low each day, buy in and sell at the end of the day, I would consistently make money. After 1 week in the demo account, with a 10k practice amount, it worked 4/5 times giving me +300$. MY FIRST DAY: Today was Powell's speech. Basically he didn't say anything new. So the bull trend had no reason to stop today. 9h30: I monitor the opening of the S&P 500. It starts with a slight dip. Unusual since most the time, there is a buy-in at open. But since there wasn't a sell-off at the previous close, I'm thinking it's nothing too alarming. 10h: first dip. I'm hesitant. The last few days the first dip was followed by a deeper one around 11h. 11h: Still no dip. It even hits new highs. I'm starting to rethink my plan. Just the day before, the S&P 500 ran up all day with practically no dips. Then I notice a trend: the price seems to "hug" the EMA 20. I wait for the price to drop under the EMA 20 and decide to jump in with 14 shares. https://preview.redd.it/9qp5q476flj51.png?width=939&format=png&auto=webp&s=5e96a03713169869cf1a18badac5246e7af26102 Well that didn't go as planned. The price kept running down, further and further from the EMA. At that point I made a minor mistake by not jumping out when my plan didn't go as expected. I was lucky enough to hit a break-even price and jumped out of the trade at 0. Scary. I decide to take a little break to clear my mind and come back 30 minutes later. SECOND TRADE: At this point I realize the price is breaking a resistance that I had noticed earlier (the day's high). I think it's a good signal for a significant break out towards higher highs. https://preview.redd.it/6v6j5obxflj51.png?width=1312&format=png&auto=webp&s=8bef020f8689c862478e1bb2d50e0ef5e8e66cb8 Well I was wrong again. The price goes down, and down, and down. Luckily, I had taken a rather small position of 2 shares since I was kinda shook by my first unsuccessful trade. At this point I didn't really know what to do other than watch the price run down. I decide to buy positions on the way down. 2 shares each time during the downward trend (circled in black): https://preview.redd.it/lebrwuk2hlj51.png?width=1312&format=png&auto=webp&s=50dee1eca7c2fc543453daa2ff29722ee34c6caf The SPY keeps going down, and I nearly have no more money. My live result is -20$ and I'm starting to think that I will keep the positions open over night and that tomorrow I might get lucky. At this point I'm starting to get a better idea of the support and resistances of the day. I figure if the price goes bellow the day's low, then I would have to accept the loss and sell. But then 1pm come along and we finally get a nice bounce. I'm up +4$. I sell all my positions and call it a day. The day is not over yet when I'm writing this but I obviously could have sold later. In hindsight, if I had just followed my initial plan (buy at open, or at day's low, sell at close) I would have done much better (maybe 10$ profit?). https://preview.redd.it/6yqr1boijlj51.png?width=1280&format=png&auto=webp&s=a025e9d56fafdc16616bfc489fcd1fec34cadf70 WHAT I LEARNED: -However well you performed with fake money, I will be completely different with real money. -Any plan/strategy you had before hand will disappear once the market opens. -You will make many mistakes. You can't just watch YT videos on trading signals and apply them. No matter what the YT gurus tell you, It's not easy to day trade. -Spreads kill your profits. When I bough in, there was a 0.25$ difference with the actual price and when I sold it was 0.10$! Maybe the spread decreases with low volatility? I hope somebody will find some useful info here! I will answer questions if you have any. If people want to give me advice, be welcome! I'm a beginner!
Beating the UK brokerage via true arbitrage - £8k -> £98k ($128k) since 21st April
Alright you American autists, here's a gains post from the UK across the pond - listen up because it's pretty incredible, managed to screw over our broker to turn ~£8k into £98k / $128k USD by reading the small print, true u/fuzzyblankeet style. https://preview.redd.it/9mlup18v0q951.png?width=343&format=png&auto=webp&s=aea1393d304d16063d62d54d30cc5be9b23d937a Unfortunately, we don't have options trading, commission free robinhood which crashes, or any other US based degeneracy, but instead we British chaps can trade "CFDs" ie. 'contracts-for-difference', which are essentially naked long / short positions with a 10-20% margin (5-10x leveraged), a 'holding cost' and you could theoretically lose more than your initial margin - sounds like true wallstreetbets autism, right? Well grab a lite beer (or whatever you lite alcoholic chaps drink over there) and strap in for this stuff: So, CMC Markets, a UK based CFD brokerage, wanted to create a West Texas Intermediate Crude Oil 'Spot' product, despite WTI contracts trading in specific monthly expirations which can thus have severe contango effects (as all of you $USO call holders who got screwed know) - this was just a product called "Crude Oil West Texas - Cash", and was pegged to the nearest front-month, but had no expiry date, only a specific holding cost -> already a degenerate idea from their part. So in early April, just before when the WTI May-20 expiry contract 'rolled' at **negative** $-37, the "WTI Cash" was trading at $15 at the time, but the *next* month June-20 expiry was still $30+ we (I am co-running an account with an ex-Goldman colleague of mine) simultaneously entered into a long position on the "WTI - Cash" product, and went short on the "WTI Jun-20 expiry", a pure convergence play. Sure enough, the June-20 tanked the following week, and we made over £35k, realised profits. But meanwhile the May-20 also tanked, and we were down £28k. But rather than realise this loss, we figured we could just hold it until Oil prices recover, and profit on both legs of the trade. However, CMC Markets suddenly realised they are going to lose a lot of money with negative oil prices (Interactive Brokers lost $104m, also retards), so they screwed everyone holding the "WTI - Cash" product trading at $8 at the time, and pegged it to the December 2020 expiry trading at $30, with a 'discount factor' to catch up between the two. https://preview.redd.it/zjjzyahx0q951.png?width=517&format=png&auto=webp&s=9523bab878f06702133631f12c1109081f299f65 Now fellow autists, read the above email and try to figure out what the pure arbitrage is. CMC markets will charge us a 0.61% **per day** holding cost (calculated as the 10x levered value of whatever original margin you put up, so in our case £8k*10x=£80k*0.61% = £500 per day, £1.5k on weekends for extra fun) on our open positions, but also "increase" the position value by 0.61% per day vs. the **previous day's** WTI - Cash value. Got it yet? No? Still retarded? Here's where maths really helps you make tendies:-> If your 'cost' is fixed at 0.61% of your original levered position, but your 'gains' are 0.61% of the previous day's position, then your gains will be ever increasing, whereas your costs are fixed. So we added some extra £££ (as much as we could justifiably put into a degenerate 10x levered CFD account) and tried to see if it works. Long story short, it does. At this point in July we were making **over £1k per day on a £8k initial position*\* regardless where the WTI Dec-20 fwd moved. Unfortunately, eventually CMC markets realised what utter retards they were, and closed down the arbitrage loophole, applying the holding costs to the previous day's value. But not before we turned £8k into £98k, less holding costs. https://preview.redd.it/uh0f8knz0q951.png?width=553&format=png&auto=webp&s=c7e629f72de5aeb4e837ccef44ecae708f058bee Long story short, puts on $CMCX they're total retards, and given what a startup robinhood / other brokerages are, never assume that only they are the ones taking your tendies away, sometimes you can turn the tables on them!
LONG TIME lurker, first time posting. Profitable trader here wondering how I’d give something back to this community without saying, “buy x company at $1 and sell at $1.2”, or giving up the secrets of my strategy. I’m from a banking/arbitrage trading/risk analysis family...would anyone be interested in information around those areas in regard to day-trading? EDIT: I’ll have a bit of a write up tomorrow and stick it up here. Thinking I’ll post something on the arbitrage topic first as that’s probably the most interesting/provocative. EDIT2: Alright, here goes. Instead of an arbitrage specific write up I want to talk about something else first—inspired by TheLoneComic’s comment. This is just what came out when I sat down to write. If it’s well received I’ll keep writing. This will probably be most beneficial to beginner traders with small capital and individuals struggling with stop losses...I can also go into more detail on this post, I’m typing this up within the time frame I have. Arbitrage traders (also my background) don’t think the world of day traders as individuals—or at least ALL the traders I know don’t. Saying that, the trading world as a whole LOVE day-traders. The brokers do as they get commissions and everyone else does as 80-90% of you lose your money to the swirling pool of money in the market. This dislike or “looking down the nose” isn’t all warranted, I’ll admit, but the trading world has to be filled with many losers—many of whom, unfortunately, are just average Joes or Janes trying to free themselves from the wage-cage. This is a noble pursuit but most people shouldn’t, or don’t, require leverage to be profitable and are in fact endangering their capital by doing so—not to mention cutting their career short. This probably the most mind-boggling aspect of the typical day-trader. The term, “trade within your means” springs to mind. The main point of contention within my arbitrage world is those hung up in the world of technical analysis and how reliable it actually is. Keep in mind these are firms with super-computers that execute and exit trades in the blink of an eye, searching all day across entire sectors for price disparity. There’s little room for human error and emotion...Arbitrage companies are incredibly profitable for this reason. I don’t really want to get in a debate over TA as I know how emotionally invested people are in it. I do want to get beginners to rethink how they buy and sell. I will say this, broadly speaking, TA subscribers tend to mistake their success on patterns when the real winner is discipline and strategy—that’s why I like to read this sub. if you don’t have these you will lose...the same is true for all areas of business. We could easily transplant these people into any industry and I’m sure they’d thrive. I believe there’s a missing link in the arsenal of the day-trader. Particularly for the beginner. And this missing link is combining Share Trading and CFD trading. This is a powerful stepping stone for those who want to wade into the rough ocean of CFD. Especially because it will help you better understand risk management and price movement. I’d like to propose a strategy to the 80-90% of strugglers and losers—not the disciplined with sound strategy as they don’t need much help. I believe this is a far better way to enter into the world of trading and will give you a better understanding of leverage and when/how to better utilise it. First, we’re going to start trading within our means, as protecting our capital is vital. We’re going to do this by combining Share trading and CFD trading. Specifically, we need to look for markets wherein there’s no restrictions on trading both CFD and buying shares outright. This means you’ll also need a broker that allows you to do both. Next step is your strategy, PLEASE NOTE, you’re still going to develop your own strategy and work on your discipline so spend plenty of time on this...the only thing that is going to change is how you BUY/SELL. Don’t mean to do this to you all but I’ll have to leave this one as a to be continued...I’ve run out of time and will continue later today should there still be interest. EDIT 3: I’ve got another short period here to continue on. I would like to share what I believe is the true value in leveraging for a day-trader and I’ll tie it in to where I left off. My algorithm will spit out roughly 20 strong trades a day across many different markets. Some of these trades will require being open for several days, weeks, or even a month (I know, this takes them outside the realm of a “day trade”). Herein lies a risk of capital being tied up in multiple long term holds and open positions. Two things here on why I like to actually use buying stocks as a DT strategy: brokers usually charge you a fee to leave a position open over multiple days...this cost adds up—especially if like me you set a price target and don’t exit a trade until it is hit. And secondly, clear stop loss positions are not always clear. So my solution was to just BUY shares of the stock, commodity, or ETFs if I’d projected the trade to be longer than a day or if I couldn’t find a solid stop-loss point (please note my average position size is $15,000-$20,000 per trade so I don’t need the leverage to make money). I could write a whole essay on hedging, as it can be very powerful when combined with this method correctly. It’s roll to play is so important that I will have to divulge more at some point...maybe in a future post. I use leverage mostly to hedge and play some short game while I’ve got my longer term, bigger plays in the ground. Leverage is not a method I use for playing large positions for quick money. I think this is a far better attitude for beginners as the emphasis is always going to be on price targets and exit points, risk management, and money management/allocation. More to come. EDIT 4: To summarise my viewpoint, those seeking to enter the world of trading should first learn to share trade and hedge. Learn to walk before you run. Not only will you gain better experience, be more controlled and methodical, be less frustrated and have a lower chance of bottoming your account, you’ll also have another weapon in your arsenal for when you decide to use leverage. Learning this skill will also allow you to understand when you can increase your stake/risk. Some parts of this have been left a bit vague due to either time constraints or they require a thread/discussion of their own for further explanation. If there is anything I need to dive into a bit deeper please let me know. I’d like to post another thread on hedging and a “turning $1000 into $2000” play-by-play if such things are allowed? Also thinking about posting some of my algorithm’s picks, price entry, and price target. I like discussing such things but don’t have a very wide circle outside of work to share with at the moment.
Im still playing about on the training accounts but not sure the difference between CFD and Invest. Am I right in saying that CFD can be traded any time but invest is during the trading hours. If so, what is the difference between trading on one or the other. Is one more suited for long term and the other for quick buy and sells.
Case study from Iran shows that stonks only go up when the Fed brrr and Gay Bears must repent
Tl;dr : Iran stock market doubled since virus hit despite GDP down 15% and oil price crash, stonks only go up, SPY/DOW reach new highs on OCT, Dow 30000/SPY 350 on 10/16 I keep seeing autists saying how virus cases rise, the second wave and the riots would send the market down. But let me introduce you Iran, a country that has been sanctioned by the US for years, hit by lowest oil price in recent decades, GDP down 15%, one of the earliest and severely hit country by the virus. https://moderndiplomacy.eu/2020/06/16/the-post-pandemic-irans-economy/ So, by my descriptions you would think Iran is in a recession (while it is) and the stock market should hit an all time low? You are terribly wrong. In fact, the TEDPIX (Tehran Stock Exchange Index) has gone from 549185 in March to 1270627 today. The TEDPIX increased 886528 or 230.81% since the beginning of 2020, according to trading on a contract for difference (CFD) that tracks this benchmark index from Iran https://tradingeconomics.com/iran/stock-market It must be weird right? Seeing the Iran index going to the moon when the GDP is down 15% and inflation pass 40%, but this could be contributed to the more crazy brrr by the Iran central bank. The latest liquidity figures released June 15 by the Central Bank of Iran show the volume of money in circulation in the country grew by 31 percent from March 2019 to March 2020. https://en.radiofarda.com/a/iran-s-money-supply-skyrockets-parallel-to-inflation/30671910.html By comparison, the US M2 has increased 23% between Jun 2019 - Jun 2020, while it may seem small in comparison to Iran, the M2 increase from march to June could be considered one the largest spike in history where years’ worth of money supply is suddenly dumped into the US economy and what do you think would happen? Stonks go up. https://fred.stlouisfed.org/series/M2 So, Iran has been printing more money than ever and we haven’t been able to see how much Iran is brrrr since March when the virus is beginning spreading like wildfire and closing down many businesses, while inflation is high the stock market goes higher. This is why being a gay bear in the US could see blood on your bank account but being a gay bear in Iran could actually be murdered by the Iran central bank by literally throwing money at you in real life(coin forms of course) and your stock account going to negative https://www.usatoday.com/story/money/2019/06/14/countries-where-being-gay-is-legally-punishable-by-death/39574685/ So stop being a gay bear and prepare for the new highs as the Fed (owned by Donny now) would never ever allow it to go down at least before the elections, he could in fact send the stock market to new highs just to pump up the elections, remember Iran stock market just doubled since march. EDIT: Venezuela stock market up 1900% in 1 year. https://www.bloomberg.com/quote/IBVC:IND Caracas Stock Exchange Stock Market Index 1 Year Return 1,902.99%
Can someone explain to an idiot (me) how the cost of a trade of CFD, whether it be Forex, oil, crypto etc, is calculated in terms of how much money is required per trade? This is all in a practice account, I just enjoy playing with it. For example the price of Ethereum on T212 is currently around the $311 mark. If I take out the highest quantity of 500, what is the calculation of how much this costs me? I've done so, and the blocked funds in my account are around £6000. I just can't get my head round where £6000 is calculated from 500 units of $311?? Many thanks!
Hey guys. So I have 10k savings and I've been looking into buying something that can keep up with inflation over time. I'm planning to add to this amount any chance I'll get. I wanted to open a Plus500 account but then I realised it only offers CFD trading. Isn't that basically gambling? You don't know if your money is going up or just entirely vanish. You don't own anything but are just relying on the volatility of the market. So I'm just wondering why people get into it. Is it good? Is it better than buying shares through brokers? What are your experiences/thoughts? (sorry if this isn't the right place to ask the question. I'm not pro in Reddit.) Just letting you know I live in Australia. Over here they’re not banned 👀
With Bitcoin Suddenly Surging, Canaan Stock Is Also Going Up Today
Hey all. I've been using trading 212 for over a year now to buy and sell (only invest acc never done CFD's/shorting). I really like the platform but I want to be able to buy a stock and sell it straight away (scalp) which obviously you can't do on T212. I see these youtube channels who will scalp all day and make much more reliable profits even from a few thousand pound/dollar buys. What platform would you recommend me to move onto next? The shoring side of T212 is pretty awful imo, the spreads are crazy, I've shorted lots on the practice accounts and the stock have to nosedive so badly to even get tiny profits when shorting on here. I'm just looking for a more professional scalpable platform and one that you don't need to have like something dumb like 50 grand in for the account to stay open!. Any advice greatly appreciated - Thanks.
CFD providers are reporting a significant increase in new clients because of Covid-19. Whilst most seasoned traders understand the difference between DMA (Direct Market Access) and Market Maker pricing, I'm sure many have opened accounts with the likes of CMC Markets, City Index and IG Markets without reading the PDS (Product Disclosure Statement). A CFD or Contract for Difference is an agreement between you and your provider to exchange the difference in price of an asset between when the contract is opened and when it is closed. The CFD product is simple to understand and offers considerable amounts of leverage enabling traders to take out positions much larger than if you purchased the underlying product. Now in the beginning, CFD providers charged a fee for opening and closing a position in exactly the same way a broker would charge in order to buy and sell ordinary equities. If you wanted access to live prices, you needed to pay an exchange fee. As CFDs became more popular, CFD providers began innovating the product in order to generate profit. The providers decided to enter into agreements with real banks and financial institutions in order to hedge their exposure and make more money by taking the opposite position to what was being traded. This still wasn't enough for CFD providers who again changed the product by charging a spread (the difference between the buy price and sell price). The major banks / financial institutions who partnered with the CFD provider in order to hedge were not charged a spread. This, again, was still not enough for many providers. CFD providers began the unthinkable and decided to charge their own price for the underlying instrument! This meant that it was now possible for providers to not only take the opposite sides of the buy / sell price using liquidity partners, but also adjust the price of the CFD to any amount they want. It was now possible to increase the price of a CFD trade to a level high / low enough to hit your stop losses before adjusting it back to whatever the market price was. I would consider the above to constitute fraud if it wasn't so clearly described in their Product Disclosure Statement (PDS), a document that obviously many people do not read. DMA CFDs DMA (Direct Market Access) CFD providers offer a much, much better product. Upon placing an order, the provider typically places the same order into the underlying market. The prices quoted are the same as the underlying and you can even see your trade in the order book. Most DMA CFD providers charge:
Exchange Data Fee
A fee to buy / sell
In my opinion, I would much rather pay the fees quoted if it meant I was actually trading the financial markets instead of a price that can be changed in order to close out my positions at a loss whenever the computers at CMC feel like it. DMA CFD Providers Some DMA CFD providers include: FP Markets Pepperstone IG (DMA)
Pros and cons of migration to eToro AUS from eToro (Europe)?
Fellow traders - just got the e-mail below from eToro. Aside from the obvious downside associated with more of my trades being CFDs rather than outright ownership of the financial instruments and the possibility for withholding of (what will be minimal) tax on interest paid on my uninvested balance, is anyone else associated with any pros or cons of migrating to the Australian investment scheme? Right now I'm inclined to request to stay in the European investment scheme (if it ain't broke, don't fix it), but didn't know if there was any potential upside to the migration. Cheers!
As you may already know, your eToro account is currently assigned to eToro (Europe), which is authorised and regulated by the Cyprus Securities Exchange Commission (“CySEC”). However, based on a review of your account, we have decided that it would be best to migrate your account to eToro AUS Capital Pty Ltd (here and after eToro AUS) and "eToro Service". The eToro Service (Scheme) (ARSN 637 489 466) is a registered management investment scheme that is operated by Gleneagle Asset Management Limited (GAML) (ABN 29 103 162 278 AFSL 226199). Investors who acquire an interest in the scheme obtain exposure to investments in stocks traded on US stock exchanges. Subsequently, this will change the regulatory authority associated with your account to the Australian Securities and Investments Commission (ASIC). You will be prompted to accept the transition via an in-app pop-up by Monday following this email. Please note that once you transfer to eToro AUS, open trades forcryptocurrencies, stocks andETFswith ownership of underlying assets will be converted into CFD trades, excluding stocks traded on US stock exchanges. You can read more about CFD trading here. To migrate your account, you will be requested to accept eToro AUS and "eToro Service" client documentation as soon as possible via the popup mentioned above. Once you do so, your account will be moved to eToro AUS and eToro Service without any further action needed on your part. In a case you prefer to stay under eToro (Europe) please followthis linkand complete the requirements specified. Please note: You will need to either approve the migration or take the necessary steps to stay under your current regulatory authority as soon as possible. Otherwise, your account might be limited. eToro AUS may withhold and deduct any taxes due under applicable law and regulations that may arise from interest paid on the cash balance. We appreciate your cooperation and understanding and wish you a pleasant eToro trading experience. Sincerely, The eToro team
What are you weekly/yearly goals. Do you think they are achievable?
Up until a few weeks ago I'd been using a practice account, thinking I was Billy big bollocks, throwing money here, there and everywhere and seeing massive gains. Started using my own money and quickly realised things are a lot different and my bum hole tightens up at the thought of minimal risk. My current target is 5% a week. 1000 + 5% over 52 weeks = 12,000+ I'm up 25% over 3 weeks, with this week being quite poor, so I feel this could be manageable. I'm also from the UK so day trading is not an issue. Can't buy/sell options but can switch to CFD account. What's everyone else targets?
I started gambling about ayear ago. At first it was small amounts but soon enough that changed. I gambled away my salary as soon as it huts the account. Rn i have no money and idk what to do for the next 2 weeks until my next payday. 0 money. I have to starve myself for 2 weeks, i see no other way out. Moreover i have an overdraft that i lost on cfd trading. It will take me about 2 years to cover it. I borrowed from friends lied to my gf, my family, my sister, my friends. Everyone. I feel lost. I never have money, i always lose what i save. This is no way to live. I need a way out.
Developing a new strategy, can I please get some opinions from people familiar with VIX hedges
Intro: I trade CFDs on a MM model, as proof I am not a CFD noob that will destroy my account here is my equity graph with X as trade number and Y as performance in %. The period of obvious change is when I developed my current strategy. I was leveraged 8X long in the March crash and 2X in this weeks one, so my risk control has worked so far, although I took a massive hit to unrealised profits. I have never used a VIX hedge so if anyone has experience with them any help would be great. https://imgur.com/a/xvoGXtJ My new plan: The whole idea is based upon keeping it as simple as possible, whats more simple than S&P longs. In essence the trade is a pyramiding BTFD on SPY with max leverage set at 20X and a VIX hedge. The Products: -CFD on the S&P spot price, there is no expiry or rollover. There is however a holding cost of 2.69%PA paid at 1700h NY time. -CFD on VIX futures contract, furthest out. No holding cost, but expiry will be between 1-2 months depending on entry point. Position Sizing: -Entry 1: Long S&P at 1X account value, Long VIX at 1/4 S&P trade value. The 1/4 comes from this information I found "According to the CBOE Website, on average, the VIX rise 16.8% on days when the S&P 500 index drops 3% or more. This means that if the SPX move down by 10%, the VIX can potentially shoot up by 56%. To play it safe, the fund manager assumes that the VIX will rise by only 40% when the SPX drops by 10%." https://www.theoptionsguide.com/portfolio-hedging-using-vix-calls.aspx#:~:text=To%20implement%20such%20a%20hedge,known%20as%20the%20reverse%20collar. -Entry 2: Repeat of entry 1 which is pyramided on top of it. This makes the trade 2X, all subsequent entries will add 1 the leverage amount. Risk Management: -Upon entry 2 the 'take profit stop' of entry 1 and the 'stop loss' of entry 2 will be set to a position slightly above break even for the trade, including interest and VIX roll over losses. -Profit off VIX will be taken in event of a major crash that shuts down the main position. - In the event of VIX spike >50 VIX may be shorted at an equal level to the long that is open Entry 1 Rules: -VIX >28 -S&P retracing -S&P in uptrend as defined by HHHL in 4h chart -MACD has convergence between indicator line and price action (shows continued momentum) Subsequent Entry Rules: -As per entry 1 rules -Current position profit >5% of position base value, increasing by 2% for every extra entry Exit Rules: -If I hold a strong conviction the market will drop severely -If max leverage has been reached, close down some profitable positions to increase cash balance which in turn lowers leverage value. This will allow the strategy to continue to grow further. -Profit on VIX may be taken if: VIX is in profit, has a declining price, and contract expiry >2weeks. The hedge position will then be rolled onto new furthest contract. I will update this as the thread continues by strike though for removals and italics for admission
Hello you downy shitbirds. I have decided to take on the role of getting the first, of what will likely be a very short-lived, ASX_Bets competition started. I feel that by 'running' the competition, I might be able to make it less shitty and cringeworthy than some of you. Firstly, the name. I know Rene Rivken is not exactly the most contemporary reference, and I had considered other names, like the Bradbury Cup (still not super recent, but probably a better predictor of what I see happening with this competition). The reason I went with Rivken is in 2001, Rene Rivken had a meeting with the CEO of Impulse Airlines (I don't remember them either) who told Rivken that Impulse was likely going to merge with QANTAS. Rivken leaves the meeting, and HOURS LATER buys 50,000 QANTAS shares. He is convicted of insider trading, after making $2,664.94 on the trade. This is just a beautiful story, and I think it needs to be memorialised. Ok, now that we've got that out of the way. The rules are fairly straight forward:
On 18 May (yes, 18 May - you can wait one fucking week) you must purchase no more than AUD$1,000 (including brokerage) worth of any Australian financial product. Evidence must be provided in the form of a screenshot. Just take a screenshot and upload it to imgur and link it. Don't DM me.
I will make a new thread every Friday evening, where EVERYONE MUST POST their weekly trades by Sunday 6.00pm. If you baghold for the week, you can just provide an update on the value.
This is a YOLO competition. Pick one product and roll with it, sell, repeat. I don't actually care about it being a YOLO competition per se, I just don't want to have to keep track of 10 different stocks and the buying and selling. You can hedge outside of the competition if you must.
You lose any value that is not rolled into your next trade. I.e. if your first trade is 1k - 1.2k, your next trade must be worth 1.2k. You can take profits, but that value is lost moving forward. This is because I am not Rain Man and won't keep track of all your leftovers. This is also to prevent the inevitable "I saved $86 in week 1, $47 in week 2, and here is some random penny stock trade that I made with leftovers that went +900% and now I win." - Everything must be on the table in the weekly updates.
The competition will end at 6.01am AEDT Saturday, 27 June. The winner will be the person with the highest total MARKET VALUE at that point. If you are still holding your products, fine. You don't have to sell, but the market value will be used to determine their value. Not your vibe; not what you think they're worth; not what they might be worth at expiry.
The following are all acceptable products to trade:
e-minis, whatever the fuck that is
I'm not sure if we should allow US options. Please discuss (I have ended the competition assuming we are). I think this should be a level playing field competition and many people don't have US Options accounts, so happy to go either way. Let me know what you all think. Everything is up for debate (including the cup name), but at least now we have a starting point for those discussions.
When it comes to trading cryptocurrencies, you have to speculate whether the market you have chosen will go up or down in value. And the interesting thing is that you never own the digital asset. Actually, the trading is done with derivative products like CFDs. Let's take a look at the benefits of trading crypto currencies. Read on to find out more. Volatility While the cryptocurrency is a new market, it's quite volatile because of the short-lived speculative interest. The price of bitcoin dropped to $5851 from $19,378 in 2018, in just one year. However, the value of other digital currencies is quite stable, which is good news. What makes this world so exciting is the volatility of the value of crypto currency. The price movements offer a lot of opportunities for traders. However, this comes with a lot of risk as well. Therefore, if you decide on exploring the market, just make sure you do your research and put together a risk management strategy. Business Hours Typically, the market is open for trade 24/7 because it is not regulated by any government. Moreover, the transactions are done between buyers and sellers across the world. There may be short downtimes when the infrastructural updates take place. Improved Liquidity Liquidity refers to how quickly a digital currency can be sold for cash. This feature is important as it allows quicker transaction times, better accuracy and better pricing. Generally, the market is kind of illiquid as the financial transactions happen across different exchanges. Therefore, small trades can bring large changes in the prices. Leveraged Exposure Since CFD trading is considered a leveraged product, you can open a position on what we call "margin". In this case, the value of the deposit is a fraction of the trade value. So, you can enjoy a great exposure to the market without investing a lot of money. The loss or profit will reflect the value of the position at the time of its closure. Therefore, if you trade on margin, you can earn huge profits by investing a small amount of money. However, it also amplifies losses that may exceed your deposit on a trade. Therefore, make sure you take into account the total value of the position prior to investing in CFDs. Also, it's important to ensure that you are following a solid risk management strategy, which should involve proper limits and stops. Quick Account Opening If you want to buy crypto currencies, make sure you do so through an exchange. All you need to do is sign up for an exchange account and keep the currency in your wallet. Keep in mind that this process may be restrictive and take a good deal of time and effort. However, once the account is created, the rest of the process will be quite smooth and free of complications.
Regular's may have noticed that Trading 212 is heavily promoted here, more so when markets are down... so I browsed through some of their filings. It turns out this spike is explained for a couple of reasons. Firstly, marketing is almost entirely "restricted to online channels". In fact, "no rebates are paid to 3rd parties for client acquisition". The company describes these activities as "costly". But effective for attracting a "retail only" CFD clientele. Secondly, for T212 they describe that "volatility is the single biggest driver of client acquisition". So whatever advertising works for them, they're going to be doing more of it as volatility spikes. We know volatility spikes hardest when markets drop fastest... Helps rationalise the increase in posts that promote T212 by young reddit accounts. Is T212 Good? I'm not a customer, I can't comment from that perspective. But for the owners, hell yeah! 2018 income was just shy of 29mm on 56mm of revenue (which at the time was all derived from CFD business). This allowed the the two main shareholders to enjoy most of the 12mm in dividends paid that year. Not bad for a company of about 200 employees and 50,000 customers! How is it so profitable? Well their core business was historically offering only CFD trading to retail-only (not institutional) client base. CFD as a product started getting more regulated a couple years ago (retail vs pro customer distinction). Long story short, T212 longer term are trying to build a robinhood / freetrade [if anyone interested they're acting as an internaliser via bulgarian entity, although i couldn't figure out why this is a good way of offsetting any meaningful cost of running zero-fee sharedealing as i didnt imagine the volume would be sufficient, could be wrong]. The advantage they have is they still have this CFD cash-cow that benefits when they attract sharedealing clients, some of whom will no doubt dabble, winning (or probably losing) money on CFDs. CFD business model The CFD business model is pretty simple. You offer a spread on a product, when you're big you can net-off client longs against shorts, and then you take an equal and opposite position of what exposure is leftover with your counter-party... fully hedged your left with (almost) zero risk but collected the spreads. In the past T212 used to not only make money from the CFD spread but also from "client losses on unhedged positions". To what extent they ran unhedged isn't clear, but when "76% lose money" its a nice way of juicing your returns for a little extra risk. More recently the T212 UK Ltd entity states in their reports they operate on a "matched principal basis", "fully hedging all client positions"... the matching broker is T212 Ltd (Bulgaria)... so its not clear whether any part of the Bulgarian entity's book is unhedged, although T212 topco states that revenue is derived from "profit from a tighter spread offered by their counterparties, than they offer to their clients". Where's T212 Client money? A few years ago (when it was a CFD only business) client money used to be held in Cyprus through the group subsidiary Trading 212 Cy Ltd. The Cyprus entity is no longer owned by the T212 topco, that entity was disposed of around 2018 (For 822k didn't say to whom). Back to the point, where's the money... well we can see from T212's CFD T&Cs that there are provisions stating "we may pass money held for, or received from, you to a third party". And on their website they state that the "[Bulgarian] Investor Compensation Fund (ICF) is up to 90% (but limited to EUR 20 000) of the client’s funds". The UK entity most recent report states that client funds are held with "top tier banks" but (for stockbroking only)". Best guess then for CFD clients, their money is in a bank in Bulgaria, and covered by the Bulgarian ICF. So Sharedealing client money is with "Top Tier banks" and its only CFD client money abroad? Not sure, because T212's Sharedealing Terms of Business (clause 12 Client Money) have substantially the same provisions about allowing the passing of client money overseas! They also make it clear that if that party is outside of the UK the "applicable legal and regulatory regime shall be different from that of the United Kingdom". Making it clear that "your money may be treated differently to the position which would apply if your client money had remained in the United Kingdom." Maybe T212 marketing team can jump in to clarify... (edit: formatting)
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