Advantages of DMA CFDs

CFDs have been used by professional investors for over twenty years and emerged first in the over-the-counter (OTC) or equity SWAP market. Equity swaps were used by institutions to cost effectively hedge their equity exposure.

CFDs have become one of the most popular derivative products in the Australian and European financial markets.

The popularity of CFDs has been driven by:

  • Leverage: CFDs enable you to obtain full exposure to a share for a fraction of the price of buying the underlying instrument. CFDs require only a small initial margin as a trading deposit.
  • The ability to go ‘short’: CFDs allow you to sell shares you don’t own. This enables you to profit from falling share prices.
  • Low transaction costs: CFD providers pass on volume discounts allowing you to benefit through lower transaction costs.
  • Hedging: CFDs allow you to employ more advanced strategies such as hedging to protect your existing share portfolio.
  • Simplicity: CFDs mirror the price of the underlying instrument: Unlike other forms of derivatives (i.e. futures).
  • Dividends and Corporate actions: CFDs allow you to benefit from dividends or bonus issues which may occur in the underlying instrument on which the CFD is based. 

“CFDs provide all the benefits of share trading combined with the added advantage of being able to utilise your unrealised profit, and only outlay part of the full notional value of your position.”
 
First Prudential Markets' DMA CFDs  - the REAL CFD Traders choice.

 
 

 

Commission, interest, platform fees, dividends, variation margin and other fees and charges may apply to financial products or services available from First Prudential Markets.

The information in this website has been prepared without taking into account your personal objectives, financial situation or needs. You should consider the information in light of your objectives, financial situation and needs before making any decision about whether to acquire or dispose of any financial product. A Product Disclosure Statement for each of the financial products available from First Prudential Markets can be obtained either from this website or on request from our offices and should be considered before entering into transactions with us. Derivatives can be risky; losses can exceed your initial deposit. First Prudential Markets recommends that you seek independent advice from an appropriately qualified person before deciding to invest in or dispose of a derivative. First Prudential Markets Pty Ltd (ABN 16 112 600 281, AFS Licence No. 286354).