have never traded a cfd in my life, so I need a bit of guidance here.........
with some cfd providers you can trade cfd`s in all ASX quoted stocks including the penny stocks.
if you buy a cfd on a penny stock for $ 10,000 you need that 10k in the account before you buy, because the margin is 100%.
now I sell a cfd on 1 million shares of EIO @ 1 cent = $ 10,000
how much money would I need in my account before I can sell that cfd?
with some providers you can trade physical stocks and cfd`s.
now I sold that cfd on EIO shares for 10k.
with another broker (because I dont need the money in the account when I place the order) I bought 1 million shares of EIO @ 0.9 cents and I transfer those shares to the cfd provider to square the deal for a profit of $ 1,000.
is this possible or is there a better way?
thanks for any input