CFDs - Help in understanding price - Aussie Stock Forums

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  1. #1

    Default CFDs - Help in understanding price

    Hello all
    Apologies if this has been covered elsewhere but I couldn't find a thread addressing this.
    I've only really traded shares. I'm looking at trading CFDs. How do others manage the fact that the quoted CFD price of a stock is different to the underlying price? Let's say I want to buy MBL. Let's assume it has an underlying price of 75 and I want to place a stop at 73 (using, as an example, a protective stop of 2ATR where ATR=$1). If the CFD quoted price is 75.09, how do I recalculate? How do I set my stop? I'm concerned that I can't properly follow price action.

  2. #2

    Default Re: CFDs - Help in understanding price

    Make it 73.09 stop.

    I hope you understand that your 10x leveraged.
    If you do hit your stop and you bought 10000 of them thats a $20,000 loss.

    You could set a stop based upon price action rather than Oscillator.

    Hmm technically $72 looks a pretty good stop level.
    I like the current build up $74.93 would be a more aggressive stop.
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  3. #3

    Default Re: CFDs - Help in understanding price

    Did you get on it?

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