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YZJ Fin Hldg
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YZJFH - potentially rewarding
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BinderyT
Elite |
08-Nov-2023 17:34
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Country Garden is bigger than Evergrande. If it collapses, there will be more social unrest. Looks like the CCP has no choice no matter how tough they wanted to appear.
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sgng123
Supreme |
08-Nov-2023 17:28
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China going after savers money to bail out real estate lol. New keaked out by reuters but Ping An deny it. | ||||
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BinderyT
Elite |
08-Nov-2023 17:28
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Confirmed already. Country Garden up over 12%.
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sgng123
Supreme |
08-Nov-2023 17:20
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Now leak that china gov order Ping An insurance to bail out country garden lol. If new confirmed then tomorrow u see all chiba counters bounced back. | ||||
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sgng123
Supreme |
08-Nov-2023 17:16
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CFD just a casino big or small bet on future price. Just another financial product like 4D, toto etc. We can buy 4D, toto lah no need for CFD as we betting against big players who can move share price to their advantage. Today sone jokers try 0.33 then u immediately see bb selling down to protect their short bet. This market heavily manipulated, retail go in and u lose for sure if cannot hold. For now we wait fir 3q business update if any. | ||||
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BinderyT
Elite |
08-Nov-2023 17:11
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I don' t think there is order matching. It is OTC. Yes, backend risk management might do offsetting as a hedge. But brokers do not do matching to book a CFD.
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BinderyT
Elite |
08-Nov-2023 16:56
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Yes, correct in that the broker will usually have their hedging strategies. Whether by off-setting CFDs from other traders or buying the underlying securities themselves. No different from market makers in options market. But the key difference is that in CFD, your counterparty is the broker. I.e. you are betting against the house and that' s what it will say in the contract. Whether the broker buffers his risks by hedging is the broker' s problem. So you asked - isn' t this a 50-50 play? Nope. Like a casino, the house wins by having house advantages. And one of their house advantage is the spread. You buy a CFD for a higher price than when you sell (that' s how currency exchanges make money). Just like a casino, the casino might make or lose money for each trade. But across a large volume, the casino always make money because of the small house advantages adding up.
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volvo125
Master |
08-Nov-2023 15:29
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Ha ha ... thanks. Very complicated and seems can involve many parties ... these steps are probably the so called hedging mechanism in the backend for the broker to take the neutral stand to " broker" the cfd trade with a buyer and a seller (to earn commissions and fee), and not as a counterparty to " take" the trade (that will incur outsized gain or loss). Thanks
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ss2017.
Supreme |
08-Nov-2023 15:11
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Volvo,
Long reply I made a summary: Brokers typically execute CFD trades by acting as intermediaries between buyers and sellers. They may use a combination of in-house trading desks and external liquidity providers. Alogarithm is involved. In the backend, brokers manage CFD trades through a multi-step process. When a trader places an order: 1.Order Reception: The broker's system receives the order, specifying the instrument, volume, and other relevant details. 2. Order Routing: The broker may route the order to different liquidity providers or use its internal trading desk, seeking the best available prices. Risk Management: The broker assesses the risk associated with the trade, considering factors like market volatility and the trader's account balance. 3. Order Matching: The system matches the buy and sell orders, either internally or with external counterparties, ensuring liquidity and price alignment. 4.Execution: The trade is executed at the prevailing market price, and the corresponding positions are updated in the trader's account. 5. Confirmation: The trader receives a confirmation of the executed trade, detailing price, volume, and other relevant information. 6. Post-Trade Processing: The broker manages post-trade activities, including settlement, margin adjustments, and updating account balances. This process involves advanced technology, real-time data feeds, and risk management tools to ensure efficient and secure CFD trading. |
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volvo125
Master |
08-Nov-2023 14:49
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Yes, nothing is for certain, but ceo resignation is a very high probability selldown event in most cases at least in the first day or few days. If poem took the client huge short sell cfd trade (0.33) and tge client bought back at a much lower price hour(s) or day(s) later (0.295), poem would incur huge financial losses on the spread difference. There must be some form of hedging mechanism in the backend to neutralize such risk, or some arrangement such that poem is not the house. I would think cfd broker is likely more like " runner" who will take the trade from client but route it with a cut to the bookies (market makers, big syndicates ...) who have the capacity and decided house advantage to makan, and hence will ultimately deal with the client gain or loss. Pardon me for my ignorance in cfd ... I' m only Long with cash with no margin. But I think it is good to know how cfd actually works in the backend. Thanks.
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BinderyT
Elite |
08-Nov-2023 14:04
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Well, because nothing is for certain? If I use your example and short sellers went full steam when YFH CEO resigned, aren' t there traders buying from the short sellers? Takes two parties to make a trade. The only difference is that for stocks, the counterparty is another trader whereas for CFD, the counterparty is the broker.
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volvo125
Master |
08-Nov-2023 13:08
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Wa ... then the broker becomes the gambler. Say in the case when the news of YFH ceo resignation was released, shrewd sellers would go in immediately to short sell YFH big time with cfd. So why would the broker or poem dare to take the trade as a house knowing very well the price will definitely be hammered down big time in the next few days and stand to lose the huge trade differences to the cfd shorts who would closed the trade within the day or a few days ? I don' t understand this broker acting as a " house" logic ...
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volvo125
Master |
08-Nov-2023 12:51
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Huh ? Broker becomes the gambler or the house that take the difference in the trade ? The broker, say poem, is just one of the many brokers for all the listed stocks and it is not the market maker for the particular stock that the client wants to buy or sell using cfd. The broker won' t be able to see the details in trade depth that involves all the parties including the market makers, syndicates, institutions.... etc, and certainly has no idea what the market maker or those big syndicates want to do with the stock, so how could the broker play the role of the house if it could not somehow " influence" the trade direction or has a decided house advantage in dealing with the stock ? Then the broker will just have a 50:50 chance in a cfd trade with the client. The broker could lose a lot of money if the client is right 50% of the time. Is it supposed to be like that ?
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PiRPiR
Master |
08-Nov-2023 12:20
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https://www.aaatrade.com/blog/4951-do-cfds-impact-share-price#:~:text=For%20instance%2C%20if%20you%20obtain,to%20the%20changes%20in%20price.
Do CFDs impact share price? 2021-07-22 12:09:36 Contract for Difference (CFDs) is a contract that takes place between a trader and a broker, where the difference in the value of an asset (from the time of opening the contract to the time of its closure) is exchanged. In that regard, investors can gain access to assets at lower prices than when they acquire the assets. The flexibility of leverage in CFDs means that investors can increase their returns when their stock market prediction turns out precise. contract for difference CFDs trade So do CFDs impact stock prices? CFDs rise or shrink in value as the stock in which they?re based climb or drop in value. For instance, if you obtain a CFD of Apple stock, and the value of stock shares rises, then the value of your CFD will increase. On the contrary, if the value of Apple stock shares drops, your CFD?s value will also drop. Therefore, CFDs don?t impact share prices they only respond to the changes in price |
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BinderyT
Elite |
08-Nov-2023 12:18
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For CFD, you are betting against your broker. Yes, they make money from commission, spread, financing, etc but ultimately, it is trader Vs broker. They are like the illegal bookies that used to hang around hawker centers :)
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PiRPiR
Master |
08-Nov-2023 12:14
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https://www.investopedia.com/articles/stocks/09/trade-a-cfd.asp
TABLE OF CONTENTS TRADING SKILLS TRADING INSTRUMENTS Contract for Differences (CFDs) Overview and Examples By CORY MITCHELL Updated June 22, 2023 Reviewed by MARGUERITA CHENG Fact checked by PETE RATHBURN What Is a Contract for Differences (CFD)? A contract for differences (CFD) is a contract between a buyer and a seller that stipulates that the buyer must pay the seller the difference between the current value of an asset and its value at contract time. CFDs allow traders and investors an opportunity to profit from price movement without owning the underlying assets. The value of a CFD does not consider the asset?s underlying value, only the price change between the trade entry and exit. This is accomplished through a contract between client and broker and does not utilize any stock, forex, commodity, or futures exchange. Trading CFDs offers several major advantages that have increased the instruments? enormous popularity in the past decade.
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BinderyT
Elite |
08-Nov-2023 12:07
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Not sure if point 4 is true. CFD is like a side bet between the trader and the house. There is no stock involved so why would it create volatality in the stock market?
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volvo125
Master |
08-Nov-2023 11:58
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Would you be able to ask your friend to clarify how do brokers actually handle such cfd trades in the backend ?
The goal of the broker biz is to earn commissions and fees only, not a participant as a counterparty of the client' s risky trade to profit or loss. The broker is indifference to the directional nature of the client' s trade.
If cfd is just a paper buy or short sell with margin arrangement contract with the broker without actually buying or short selling the physical stock in real time, then regardless the client is right or wrong, who this client make or lose his money to or from ?
So I believe there is definitely some form of corresponding buying or short selling the physical stock in real time (amplified with margin) to exactly match the client' s order for every cfd trade.
Perhaps your friend could clarify and enlighten us ? Thanks.
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ss2017.
Supreme |
08-Nov-2023 09:14
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I ask my best friend on CFD, he gives me this reply. Please take note of point 4 which promotes mkt manipulation, point 5 promotes addiction.
Is CFD trading ethical? The ethical implications of CFD trading depend on various factors, including individual perspectives and the practices of traders and brokers. While CFD trading itself is a financial instrument with legitimate uses, it can be associated with ethical concerns: 1High Risk and Leverage: CFDs often involve high levels of leverage, which can amplify both gains and losses. This heightened risk can lead to financial distress for inexperienced or overly leveraged traders. 2 Complexity: CFD trading can be complex, and there is a risk that traders may not fully understand the products they are trading, leading to unintended consequences. 3 Conflicts of Interest: Some critics argue that conflicts of interest may arise between traders and brokers, as brokers often profit from traders' losses. This can raise questions about the fairness and transparency of the trading environment. 4 Market Volatility: CFD trading can contribute to increased market volatility, especially when large numbers of traders engage in speculative activities. 5 Addictive Nature: The ease of online trading platforms and the potential for quick profits can make CFD trading addictive, leading to compulsive and risky behavior. It's essential for individuals considering CFD trading to be aware of these ethical considerations, conduct thorough research, and understand the risks involved. Responsible trading practices, education, and regulatory oversight can contribute to a more ethical trading environment. |
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pkli899
Supreme |
07-Nov-2023 09:56
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Thanks for update. Here add a little, there plus a bit, all will add up.... 
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