question - in the instance of the flash crash in 2010 and similar events - if you had a CFD on the Dow 30 with say CMCmarkets (as I do), and the market dropped 1000pts etc and returned back up in moments - your stop losses within that threshold, along with any other buy orders and their stop losses, would all be triggered (and you'd lose big). These assumptions are all correct - right?
Not to mention dodgy CFD providers could deny or modify certain trades in their favour, as sometimes they apparently do (eg. if you picked up something really low during the flash crash and it didn't get stopped out - riding the recovery).
If so, then the only way to protect yourself is to have massive stops (say 50% minimum of face value) and put down the required cash into the CFD account?
This is a danger I've considered recently as I've been investing (more than trading) via cfds in indexes and forex a little, and have been hoping to increase it as my preferred method given their very low cost and ease of monitoring.
Does anyone have any other insight/experience in this idea, or anything to add?