Quote:
Originally Posted by gez
Calls and puts yes, but as it is traded, you can buy and sell them any time up to the expiration date. As you obviously know, you buy a contract for the RIGHT to either buy or sell a stock at a predetermined time. This is also very highly geared and you do not actually buy the stock (until expiry??) It just sounded that there are similarities between CFDs and options.
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your are right, both, the CFD and the call/put option,are contracts on a stock. Whilst with CFD you speculate on prises going up (no put option) and you dont have experiation date of the CFD. For the difference between the margin and the buying price of the CFD you pay interest .So the CFD doesnt have an experiation date but its also no long term invest, as the interests can grow over the profit. Also when the price is falling you dont have lost limit (of course you set a stop loss) as you option is just expireing.