I was wondering if anyone knows anything about getting insurance for a CFD account.
I trade CFDs because I trade a long short strategy with leverage and CFDs are the perfect instruments for that. But when you trade CFDs your provider is your counterparty and your money sits in their account. In the event of default by your provider you will be behind a pretty long line of creditors for your money.
As my trading getting serious I want to buy some protection against such risk (however small). Any ideas?
To me this is just a slightly different case of buying business credit insurance... does anyone know any good insurance broker who can provide a bit of innovative thinking?
P.S. I have no reason to believe my CFD provider is going to default or anything like that... Just like I have no reason to believe my house is going to catch a fire anytime soon. I just want to investigate insurance against such risk.