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

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  #11 (permalink)
WA Europe
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budfox View Post
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 .


Just stay away from this " plus 500",its a big mistake to have relation with them

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  #12 (permalink)
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Big Mike View Post
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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They are OTC in most places and so de-centralized but they are used for hedging and not a retail instrument. In Australia a lot of people use the OTC version as it's cheaper than the exchange version.

Like anything new, they are used to create a buzz amongst noobs and I totally agree about the $500 account thing. There are futures brokers offering that though.

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  #13 (permalink)
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CFDs are never a good idea as an intrday trading option. They're completely designed to generate brokerage via the spread, period.

Do Professional trades use CFDs? Perhaps if short positions are not permitted on some markets, like the ASX. Even in those cases, you must make sure that the CFDs are tracking the underlying...They need to offer Direct Market Access (DMA).

They make their money on the spread. That means when you enter a trade, you are already behind by whatever their difference between the bid and ask were/are.

They attract unsuspecting individuals by offering a small opening account, which they proceed to chew up on spread.

CFD's can be used to trade EOD equities for swing trades, where the spread is not so critical.

Be careful, do your research first and listen to the people with the experience, save yourself some pain and funds lost.

Oh, remember in the case of Index CFDs, like the one you mention, they track the cash equity market, and not the futures contract.


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