CFD Procedure - Aussie Stock Forums

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Thread: CFD Procedure

  1. #1

    Default CFD Procedure

    $1.00 for 10000 unit with margin lending of 5% = $10000

    If it drops to $0.80, does that mean that i will be paying $1900 ?

    Is there a limit on how much I can pay ?

    If it drops to $0.30 and I have the cash to pay , does that mean that I can hold the share as long as I want ?

    If the share drops and there is no money in the account, will I be given anytime to transfer the cash in ? usually how many days I will be given before they actually sells the share ?

  2. #2

    Default Re: CFD Procedure

    If theres no $ in your account or its approaching 0, they will chase u up.

    Give it between 0~3days. If its really bad, they'll close out ur position asap and you may end up owing them. Nasty situation any way you look at it.
    I believe effort to be a finite resource. Something to be used only when there are no other options available.

  3. #3

    Default Re: CFD Procedure

    so as long as I have cash in my account to pay up the losses, I can hold the share as long as I want ?

  4. #4
    Can be found on the bid Trembling Hand's Avatar
    Join Date
    Jun 2007

    Default Re: CFD Procedure

    Most CFD providers will have a point at which they will liquidate all positions if the remaining equity drops below a certain point. This will be done automatically without a chance to top up your account. Normally its around $200 USD
    Who is the happier man, he who has braved the storm of life and lived or he who has stayed securely on shore and merely existed? -Hunter S. Thompson

  5. #5

    Default Re: CFD Procedure

    If i am trading in US market, if the share drops, do I actually need to manually convert AUD to USD or it will convert automatically base on the current day conversion rate to pay for the losses?

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