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


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

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  #1 (permalink)
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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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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).

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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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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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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...

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  #7 (permalink)
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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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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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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

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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 .

Thanks.

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

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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.

Sent from my LG Optimus G Pro

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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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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