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On CFD brokers and actual market exposure
I'm starting to think that the supposed lower capital outlay for CFD trading, especially with something like $USO or $OIL CFDs, doesn't actually offset the often wider spreads and the inherent distance from the underlying asset's true market dynamics. I'm probably missing something crucial here, so keen to hear why I'm wrong.
1 comments · 5 points
You're not wrong about the spread being a factor. For smaller accounts, the capital efficiency can be appealing, but it's crucial to understand how funding costs and rollover fees can eat into profits over time, especially on long-term positions.