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Is this really an ES contract? or a micro version of it


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  #1 (permalink)
 budfox 
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Indices | USA 500 | ES

I am considering opening an account with plus 500,

However they mention you only need 100 to open an account.

I am confused as whether their "usa 500" is a real ES contract or a micro version of it.

please can you explain what they mean by leverage 1:14?

so does that mean instead of 50 a point like the real ES, its only 14 a point? lol .

Thanks.

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  #3 (permalink)
 
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 Big Mike 
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Not real. Is spot forex CFD. CFD is not legal in the US and is completely unregulated. Use EXTREME caution (best thing to do is just run away).

Mike



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  #4 (permalink)
 budfox 
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Big Mike View Post
Not real. Is spot forex CFD. CFD is not legal in the US and is completely unregulated. Use EXTREME caution (best thing to do is just run away).

Mike

Why does it say "USA 500" (ES) then?

Thanks

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 kevinkdog   is a Vendor
 
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budfox View Post
Why does it say "USA 500" (ES) then?

Thanks

It probably is close to the ES, meaning I'll bet it tracks it closely, but not exactly. I would watch out for the bid/ask spread growing during high volatility spikes, and possibly being larger than the normal ES spread (which is usually 1 tick, $12.50 per contract).

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 Big Mike 
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budfox View Post
Why does it say "USA 500" (ES) then?

Thanks

Because it is a CFD of the S&P 500 US.

You are here asking for advice. Advice is to RUN AWAY. You decide whether to listen or not

If you are trading 20 years from now, you can come back and give the same advice to the rookies. And watch when they don't listen...

Mike



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  #7 (permalink)
 budfox 
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Big Mike View Post
Because it is a CFD of the S&P 500 US.

You are here asking for advice. Advice is to RUN AWAY. You decide whether to listen or not

If you are trading 20 years from now, you can come back and give the same advice to the rookies. And watch when they don't listen...

Mike

First want to know what it is, before I make an opinion.

and I'm Canadian (dont think its illegal here)....so what is the difference between a Contract for difference and futures contract.

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Big Mike View Post
Because it is a CFD of the S&P 500 US.

You are here asking for advice. Advice is to RUN AWAY. You decide whether to listen or not

If you are trading 20 years from now, you can come back and give the same advice to the rookies. And watch when they don't listen...

Mike

Why do you say that?

CFDs are just financial instruments. To offer UK CFDs (which could be on any global produt), you have to be FSA registered. This is not an unregulated market.

In Australia many CFDs are traded on the ASX, which puts it ahead of the UK in terms of transparency/regulation. Australian exchange traded CFDs have the same protection there as trading any futures market.

CFDs trading is in no way limited to retail traders, it is a huge market.

In terms of regulation, I'd put CFDs somewhere between Forex and Futures.

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  #9 (permalink)
 
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 Big Mike 
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DionysusToast View Post
Why do you say that?

CFDs are just financial instruments. To offer UK CFDs (which could be on any global produt), you have to be FSA registered. This is not an unregulated market.

In Australia many CFDs are traded on the ASX, which puts it ahead of the UK in terms of transparency/regulation. Australian exchange traded CFDs have the same protection there as trading any futures market.

CFDs trading is in no way limited to retail traders, it is a huge market.

In terms of regulation, I'd put CFDs somewhere between Forex and Futures.

I'm sure you know more than me since it's not legal here and I've never traded them.

Unregulated was wrong word, I meant decentralized. I wasn't aware of CFDs on exchanges though.

The whole $500 account stuff just puts me in red alert mode since most of those brokers are dangerous. Not all but definitely most.

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  #10 (permalink)
 GFIs1 
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budfox View Post
Indices | USA 500 | ES

I am considering opening an account with plus 500

This is NOT a ES contract of course - most likely a CFD - Contract For Difference.
CFDs are very popular in Europe and in Asia. Volumes on the CFDs that follow
some bigger index are quite high too. The market is well regulated.
Though for US and Canadien citizens the CFD trading is forbidden.
In GB and some other countries Spread-betting is widely spread - looks to be
more gambling than trading and you are heavily depending on the broker's
seriousness. These micro-contracts are to be compared with the "real" futures
but they are quite expensive in the long run as the broker widens spreads heavily
when the market is moving fast.
Choosing a very big broker to trade CFDs gives better spreads, less slippage and
more gain over time. Interactive Brokers as example is widening the offer of CFDs
on many indices around the world. The name of a CFD is always given by the
broker - so "plus500" means a CFD following the actual ES index.

For more indepth information - have a look here:
https://en.wikipedia.org/wiki/Contract_for_difference

GFIs1

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Last Updated on July 7, 2013


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