Can I trade ASX 200 CFDs with DMA?

I called both Commsec and Etrade and they said you can't trade the ASX200 direct, is the right? Does anyone offer this? I'm new to CFD's so not sure why this is.

Re: Can I trade ASX200 CFD's with DMA?

Most if not all index trading is through market maker platforms to my knowledge. The likes of Trade It and Edwood i believe have traded index CFD's with degrees of success. The killer is the opening spread which can vary from index to index....so basically you have to be very confident about moves big enough to earn back your spread and then a bit more.....i tried it but being glued to ascreen is not for me right now, and i'm not very good at it either!

Hope this helps.

Cheers,

Re: Can I trade ASX200 CFD's with DMA?

The other problem is that the CFD providers set the index price themselves. They can't get too out of step as people could do a spread trade between the spi and whatever aussie200 index you are using. The only way to trade the index is to trade the spi futures or there is a share that tracks the index (I can never remember it's name) but it has a wide spread as well.

Re: Can I trade ASX200 CFD's with DMA?

Have a read of this before you decide CFDs are the way to trade an index

http://tremblinghandtrader.typepad.com/trembling_hand_trader/2007/06/the_real_cost_o.html

Re: Can I trade ASX200 CFD's with DMA?

sdgan1 said:

I called both Commsec and Etrade and they said you can't trade the ASX200 direct, is the right? Does anyone offer this? I'm new to CFD's so not sure why this is.

Click to expand...

Sdgan1

I know for a fact you can trade CFD's over the actual 10-4 ASX200 XJO with Pacific Continental Securities, Australia. info@pacconsec.com.au

It works out to index value x 5% = margin brokerage is 0.1% of the index value, you make 1$ per point per contract please note the formulas are for a single contract only.

You can short it as well.

Now IG CMC offer a CFD contract that based on the XJO during the day its always very close right now XJO is 6284 and IGXJO is 6285.

Now u dont pay a 1% brokerage you pay a 1 pont spread in and out. to make it more liquid they have added the there fair value based on the SPI.

Which I can tell you helps eg china sell off if you had your position in and stop just under the trend you would have been stopped out while your a sleep.

Trading 10-4 you would have had to deal with the -200 point open which i saw that morning after the dow fell 400.

For trading positions i dont have any problems with it there charts are a miror of the xjo chart and you can use a normal xjo chart to trade it on a daily weekly and monthly.

Day trading,

I have traded the IGXJO on the 2m and have had success but when your wrong the extra two points add up!

I personally think it's better to trade on positions, one word of caution it can move in very wide ranges in a period watch your stops!


Cheers feel free to ask if you have any Q's