Thursday, February 2nd, 2017

Am I better to short/long sells stocks using options with their strategies or by using CFDs? Please help/advis?

I’ve been looking at several ways to play the stock market to make money out of it. I’ve been looking at two investment vehicles, above all, and are CFDs (contracts for difference) and trade in options. Now, I personally believe that fair trade options, i. e. puts and calls is losing assets since most of them expire worthless and is a common fact that people who trade in this way have a% 95 + list of failure. That’s why it would not change this way of making a fortune as my chances are pretty slim. I have however, CFDs traded on a practice account and have made 25% return on my first trade. I still think, however, that once again this could be losing assets to do it this way as writing options. The best way to make big money in the stock market in my opinion, how the pros do it by selling shares short and long venta.Lo I want to know your opinion is what investment vehicles outside CFDs or options would I best use we recommend the use of long and short selling to sell their shares for cash massive and become a millionaire? What investment vehicle is safer to use for the sale of short and long term by selling off the options or CFDs? Well, the answers would be greatly appreciated reasoanble. Thank you.

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One Response to “Am I better to short/long sells stocks using options with their strategies or by using CFDs? Please help/advis?”
  1. Glenn W says:

    Firstly, there are ways to trade options without the waste that you speak of (called “theta”) so don’t let that deter you.

    Options are much better than CFDs for a few reasons. Firstly, there are hidden margins built into the CFDs – you generally cross a fairly large interest rate spread. For example, if current rates are 3%, you might only receive 1% on your money, or pay 5% on borrowings. These spreads are much smaller in the implied option prices.

    CFDs are also fairly limited – you can only go 100% long or 100% short, whereas option strategies can be incredibly flexible. For example, on your first CFD trade that you made 25% on, you could have made much more using options and also with less risk.

    Options require a little more knowledge to use properly, but prices are generally much more efficient (saving you cash!) than the CFD markets.

    Happy to continue this over PMs.

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