Is there a point in time when it becomes uneconomic to trade a long Equity CFD compared with a traditional investment?
• Most CFD trading revolves around short-term trading so any comparison is best made by comparing the savings achieved by not incurring Stamp Duty with the financing cost of a long CFD. For ease of illustration, all commission costs are ignored and effective interest rate is taken as 6.5% (say LIBOR at 4% plus a 2.5% margin).
Related Questions
- Does your system require a large investment of time? Do members have to do heavy research or trade during the day, making split second decisions?
- Is there a point in time when it becomes uneconomic to trade a long Equity CFD compared with a traditional investment?
- How does an Equity CFD investment perform in comparison with a conventional share transaction?
