Found a strange ad at the top of the page this morning
Why would an advertiser pay good money to broadcast that sort of detail? Who are they hoping to attract?
There’s nowt so queer as folk.
That is strange.
I looked up CFD.
“ A contract for differences (CFD) is an arrangement made in financial derivatives trading where the differences in the settlement between the open and closing trade prices are cash-settled. There is no delivery of physical goods or securities with CFDs.
I still don’t know what it is.
It’s basically a bet involving futures of foreign currency or shares. Very volatile, I don’t know anybody sane who plays with them. The example in investopedia makes more sense than the definition
## Real-World Example of a CFD
An investor wants to buy a CFD on the SPDR S&P 500 (SPY), which is an exchange traded fund that tracks the S&P 500 Index. The broker requires 5% down for the trade.
The investor buys 100 shares of the SPY for $250 per share for a $25,000 position from which only 5% or $1,250 is paid initially to the broker.
Two months later the SPY is trading at $300 per share, and the trader exits the position with a profit of $50 per share or $5,000 in total.
The CFD is cash-settled; the initial position of $25,000 and the closing position of $30,000 ($300 * 100 shares) are netted out, and the gain of $5,000 is credited to the investor’s account.
As to the ad, that particular quote gets a reasonable number of google hits, I think it is boilerplate CYA to say YOU HAVE BEEN WARNED.
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