OM Financial NZX10 CFDs

[Dazza]

hey has everyone read this?

http://www.stuff.co.nz/stuff/0,2106,3453426a13,00.html


anyone know who they are? or where we can find more info?
min account?
commission?
spread?
etc etc

will be interested eh IMO

[vjp24]

Sounds great!! Where can I sign up?? I would have like to have shorted some shares during the last couple of weeks!

[Mick100]

Very high risk - what happens when your 10% deposit has been burned up. No mention of margin calls in the artical

There is no way of limiting your risk with these.
Something for very experienced traders only I think.
,

[small fish]

FBU would obviously be a prime candidate, nice pull back last week could provide a great opportunity. Will be interesting to see the interest rate and how it compares to the 9.65% interest i was recently paying on my margin lending facility.

[zyreon]

u can limit ur risk via stops, the NZ market is sufficiently docile to not produce catestrophic overnight falls. but then a stop is never a perfect tool

the minimum account size is 10000. which for the most part is prohibitively excessive.

anyone want to intermediate? ;)

CFDs are generally most appropriate for trading, however you could use them as an investment vehicle,
with a leverage multiplier of about 10 you'd only need an ROA of about 2%pa to make a decent pa return

also note my signature

[TheBossMan]

See CFD thread in ASX forum. Definitely not for the faint-hearted or risk-averse. Plenty of opportunities if you've the guts (or foolishness).

Disc: I trade ASX CFDs almost daily, but I stick to a select few shares that move in a range most of the time. NZX CFDs are best suited to top 10 shares.

Set stop losses immediately or you'd be burnt heavily.

[blackcap]

Does anyone know when these instruments are going to be avaialable in market?

Im quite keen as currently only Tricom offer them on foreign shares excluding NZ. Althought the tricom model does allow you to trade the indexes which is a huge advantage.

Keen to use CFD on NZ shares as it simplifies the leverage and or shorting process provided the costs are kept reasonable.

[ananda77]

cmcmarkets.com provide cfd-trading.

After filling out the application form and sending (scanning accepted) proof of address/signature, the minimum deposit required is $1000.- in a currency of your choice. The deposit is held in a trust account at St. Georges Bank.

The deposit opens access to the trading platform (software) and shares of all major indices can be traded as well as oil, forex, and future contracts.

Trading cfd's is just like trading shares...but if a wrong decision is made the option of dropping the contract into the bottom drawer, unfortunately, is unavailable. A good understanding of barcharts and the ability to interpret daily bars correctly will limit risk.

Kind Regards

[ananda77]

...one of the plans:

call:

Djiaa30 supportlevel @(10.000) upside > 11000
S&P 500 supportlevel @(1140) upside > 1200
ASX200 supportlevel @(4250) upside > 5000

put:

supportlevels broken signalling the end of the primary up-trend.

Kind Regards

[Drunk_Russian]

Saw an article in one of the papers over the weekend about CFDs & CMC opening a branch here in New Zealand. www.cmcmarkets.co.nz/

Would be good to have access to CFDs on the NZX and the array of other indices they offer.

Anyone here trade with them and have good/bad experiences?

[BackOffice]

I am sure I read that ASB offered leverage NZ share purchases. The amount of leverage depends on the share. NZO was on their list which raised my interest at the time.[xx(]