6/16/2017 ContractfordifferenceWikipedia

Contractfordifference
FromWikipedia,thefreeencyclopedia

Infinance,acontractfordifference(CFD)isacontractbetweentwoparties,typicallydescribedas"buyer"
and"seller",stipulatingthatthesellerwillpaytothebuyerthedifferencebetweenthecurrentvalueofanasset
anditsvalueatcontracttime(ifthedifferenceisnegative,thenthebuyerpaysinsteadtotheseller).Ineffect
CFDsarefinancialderivativesthatallowtraderstotakeadvantageofpricesmovingup(longpositions)or
pricesmovingdown(shortpositions)onunderlyingfinancialinstrumentsandareoftenusedtospeculateon
thosemarkets.

Forexample,whenappliedtoequities,suchacontractisanequityderivativethatallowstraderstospeculateon
sharepricemovements,withouttheneedforownershipoftheunderlyingshares.

CFDsareavailableinAustralia,Austria,Canada,Cyprus,France,Germany,HongKong,Ireland,Israel,Italy,
Japan,TheNetherlands,Luxembourg,Norway,Poland,Portugal,Romania,Russia,Singapore,SouthAfrica,
Spain,Sweden,Switzerland,Turkey,UnitedKingdomandNewZealand.Theyarenotpermittedinanumberof
othercountriesmostnotablytheUnitedStates,whereduetorulesaboutoverthecounterproducts,CFDs
cannotbetradedbyretailinvestorsunlessonaregisteredexchangeandtherearenoexchangesintheUSthat
offerCFDs.[1][2]

Contents
1 History
1.1 Invention
1.2 Retailtrading
1.3 AttemptbyAustralianexchangetomovetoexchangetrading
1.4 Insidertradingregulations
1.5 Attemptatcentralclearing
1.6 Europeanregulatoryrestrictions
2 Risks
2.1 Marketrisk
2.2 Liquidationrisk
2.3 Counterpartyrisk
3 Comparisonwithotherfinancialinstruments
3.1 Futures
3.2 Options
3.3 Coveredwarrants
3.4 Physicalshares,commoditiesandFX
3.5 Marginlending
4 ExchangetradedCFDsinAustralia
5 Criticism
5.1 Bucketshops
6 Seealso
7 References
8 Furtherreading

History
Invention

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CFDswereoriginallydevelopedintheearly1990sinLondonasatypeofequityswapthatwastradedon
margin.TheinventionoftheCFDiswidelycreditedtoBrianKeelanandJonWood,bothofUBSWarburg,on
theirTrafalgarHousedealintheearly90s.[3][4]

Theywereinitiallyusedbyhedgefundsandinstitutionaltraderstohedgecosteffectivelytheirexposureto
stocksontheLondonStockExchange,mainlybecausetheyrequiredonlyasmallmarginandbecauseno
physicalshareschangedhandsavoidedtheUKtaxofstampduty.

Retailtrading

Inthelate1990sCFDswereintroducedtoretailtraders.TheywerepopularisedbyanumberofUKcompanies,
characterizedbyinnovativeonlinetradingplatformsthatmadeiteasytoseelivepricesandtradeinrealtime.
ThefirstcompanytodothiswasGNI(originallyknownasGerrard&NationalIntercommodities)GNIandits
CFDtradingserviceGNItouchwaslateracquiredbyMFGlobal.TheyweresoonfollowedbyIGMarketsand
CMCMarketswhostartedtopopularizetheservicein2000.

Itwasaround2000thatretailtradersrealizedthattherealbenefitoftradingCFDswasnottheexemptionfrom
taxbuttheabilitytoleverageanyunderlyinginstrument.Thiswasthestartofthegrowthphaseintheuseof
CFDs.TheCFDprovidersquicklyexpandedtheirofferingfromLondonStockExchange(LSE)sharesto
includeindices,manyglobalstocks,commodities,bonds,andcurrencies.TradingindexCFDs,suchastheones
basedonthemajorglobalindexese.g.DowJones,NASDAQ,S&P500,FTSE,DAX,andCAC,quickly
becamethemostpopulartypeofCFDthatweretraded.

Around2001anumberoftheCFDprovidersrealizedthatCFDshadthesameeconomiceffectasfinancial
spreadbettingintheUKexceptthatspreadbettingprofitswereexemptfromCapitalGainsTax.MostCFD
providerslaunchedfinancialspreadbettingoperationsinparalleltotheirCFDoffering.IntheUKtheCFD
marketmirrorsthefinancialspreadbettingmarketandtheproductsareinmanywaysthesame.However
unlikeCFDswhichhavebeenexportedtoanumberofdifferentcountries,spreadbettingrelyingonacountry
specifictaxadvantagehasremainedprimarilyaUKandIrishphenomenon.

TheCFDprovidersstartedtoexpandtooverseasmarketswithCFDsbeingfirstintroducedtoAustraliainJuly
2002byIGMarketsandCMCMarkets.CFDshavesincebeenintroducedintoanumberofothercountriessee
listabove.

AttemptbyAustralianexchangetomovetoexchangetrading

Until2007CFDshadbeentradedexclusivelyoverthecounter(OTC)however,on5November2007the
AustralianSecuritiesExchange(ASX)listedexchangetradedCFDsonthetop50Australianstocks,8FX
pairs,keyglobalindicesandsomecommodities.Therewereoriginally12brokersofferingASXCFDs,butthis
haddroppedtofiveby2009andby2014theASXceasedtoofferCFDs.

In2014theAustraliansecuritiesexchangestoppedofferingexchangetradedCFDsthattheyhadlaunchedin
2007,ithadbecomeclearthatthemajorityofCFDtradingoccurredoverthecounterandtheofferingprovided
bytheexchangewasnotattractiveenoughtocreateaviableonexchangemarket.[5]

Insidertradingregulations

InJune2009,theUKregulatortheFinancialServicesAuthority(FSA)implementedageneraldisclosure
regimeforCFDstoavoidthembeingusedininsiderinformationcases.[6]Thiswasafteranumberofhigh
profilecaseswherepositionsinCFDswereusedinsteadofphysicalunderlyingstocktohidethemfromthe
normaldisclosurerulesrelatedtoinsiderinformation.[7]

Attemptatcentralclearing

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InOctober2013,LCH.ClearnetinpartnershipwithCantorFitzgerald,INGBankandCommerzbanklaunched
centrallyclearedCFDsinlinewiththeEUfinancialregulatorsstatedaimofincreasingtheproportionof
clearedOTCcontracts.[8]

Europeanregulatoryrestrictions

in2016theEuropeanSecuritiesandMarketsAuthority(ESMA)issuedawarningonthesaleofspeculative
productstoretailinvestorsthatincludedthesaleofCFDs.[9]Thiswasaftertheyobservedanincreaseinthe
marketingoftheseproductsatthesametimeasariseinthenumberofcomplaintsfromretailinvestorswho
havesufferedsignificantlosses.WithinEuropeanyproviderbasedinanymembercountrycanofferthe
productstoallmembercountriesunderMiFIDandmanyoftheEuropeanfinancialregulatorsrespondedwith
newrulesonCFDsafterthewarning.ThemajorityofprovidersarebasedineitherCyprusortheUKandboth
countriesfinancialregulatorswerefirsttorespond.CySECtheCyprusfinancialregulator,wheremanyofthe
firmsareregistered,increasedtheregulationsonCFDsbylimitingthemaximumleverageto50:1aswell
prohibitingthepayingofbonusesassalesincentivesinNovember2016.[10]ThiswasfollowedbytheUK
FinancialConductAuthority(FCA)issuingaproposalforsimilarrestrictionsontheDecember6,2016.[11]The
GermanregulatorBaFintookadifferentapproachandinresponsetotheESMAwarningprohibitedadditional
paymentswhenaclientmadelosses.WhiletheFrenchregulatorAutoritdesmarchsfinanciersdecidedtoban
alladvertisingoftheCFDs.[12]InMarchtheIrishfinancialregulatorfollowedsuitandputoutaproposalto
eitherbanCFDsorimplementlimitationsonleverage.[13]

Risks
Marketrisk

Themainriskismarketriskasthecontractisdesignedtopaythedifferencebetweentheopeningpriceandthe
closingpriceoftheunderlyingasset.CFDsaretradedonmargin,andtheleveragingeffectofthisincreasesthe
risksignificantly.Marginratesaretypicallysmallandthereforeasmallamountofmoneycanbeusedtoholda
largeposition.ItisthisveryriskthatdrivestheuseofCFDs,eithertospeculateonmovementsinfinancial
marketsortohedgeexistingpositionsinotherproducts.Oneofthewaystomitigatethisriskistheuseofstop
lossorders.UserstypicallydepositanamountofmoneywiththeCFDprovidertocoverthemarginandcan
losemuchmorethanthisdepositifthemarketmovesagainstthem.[14]

Liquidationrisk

IfpricesmoveagainstopenCFDpositionadditionalvariationmarginisrequiredtomaintainthemarginlevel.
TheCFDprovidermaycalluponthepartytodepositadditionalsumstocoverthis,andinfastmovingmarkets
thismaybeatshortnotice.Iffundsarenotprovidedintime,theCFDprovidermayclose/liquidatethe
positionsatalossforwhichtheotherpartyisliable.

Counterpartyrisk

AnotherdimensionofCFDriskiscounterpartyrisk,afactorinmostoverthecounter(OTC)traded
derivatives.Counterpartyriskisassociatedwiththefinancialstabilityorsolvencyofthecounterpartytoa
contract.InthecontextofCFDcontracts,ifthecounterpartytoacontractfailstomeettheirfinancial
obligations,theCFDmayhavelittleornovalueregardlessoftheunderlyinginstrument.Thismeansthata
CFDtradercouldpotentiallyincurseverelosses,eveniftheunderlyinginstrumentmovesinthedesired
direction.OTCCFDprovidersarerequiredtosegregateclientfundsprotectingclientbalancesineventof
companydefault,butcasessuchasthatofMFGlobalremindusthatguaranteescanbebroken.Exchange
tradedcontractstradedthroughaclearinghousearegenerallybelievedtohavelesscounterpartyrisk.
Ultimately,thedegreeofcounterpartyriskisdefinedbythecreditriskofthecounterparty,includingthe
clearinghouseifapplicable.[15]
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Comparisonwithotherfinancialinstruments
Thereareanumberofdifferentfinancialinstrumentsthathavebeenusedinthepasttospeculateonfinancial
markets.Theserangefromtradinginphysicalshareseitherdirectorviamarginlending,tousingderivatives
suchasfutures,optionsorcoveredwarrants.AnumberofbrokershavebeenactivelypromotingCFDsas
alternativestoalloftheseproducts.

Althoughnofirmfiguresareavailableastradingisoverthecounter,itisestimatedthatCFDrelatedhedging
accountsforsomewherebetween20%and40%thevolumeontheLondonStockExchange(LSE).Anumber
ofpeopleintheindustrybacktheviewthatathirdofallLSEvolumeisCFDrelated.TheLSEdoesnot
monitorthenumbersbuttheoriginal25%estimateasquotedbymanypeople,appearstohavecomefroma
LSEspokesperson.

TheCFDmarketmostresemblesthefuturesandoptionsmarket,themajordifferencesbeing:

Thereisnoexpirydate,sonotimedecay
TradingisdoneoverthecounterwithCFDbrokersormarketmakers
CFDcontractisnormallyonetoonewiththeunderlyinginstrument
CFDsarenotavailabletoUSresidents
CFDsarenotavailabletoHKresidents
Minimumcontractsizesaresmall,soitspossibletobuyoneshareCFD,lowentrythreshold
Easytocreatenewinstruments,notrestrictedtoexchangedefinitionsorjurisdictionalboundaries,very
wideselectionofunderlyinginstrumentscanbetraded.

Futures

FuturesarepreferredbyprofessionalsforindicesandinterestratetradingoverCFDsastheyareamature
productandareexchangetraded.ThemainadvantagesofCFDs,comparedtofutures,isthatcontractsizesare
smallermakingitmoreaccessibleforsmalltraderandpricingismoretransparent.Futurescontractstendto
onlyconvergeneartotheexpirydatecomparedtothepriceoftheunderlyinginstrumentwhichdoesnotoccur
ontheCFDasitneverexpiresandsimplymirrorstheunderlyinginstrument.

FuturesareoftenusedbytheCFDproviderstohedgetheirownpositionsandmanyCFDsarewrittenover
futuresasfuturespricesareeasilyobtainable.CFDsdon'thaveexpirydatessowhenaCFDiswrittenovera
futurescontracttheCFDcontracthastodealwiththefuturescontractexpirydate.Theindustrypracticeisfor
theCFDproviderto'roll'theCFDpositiontothenextfutureperiodwhentheliquiditystartstodryinthelast
fewdaysbeforeexpiry,thuscreatingarollingCFDcontract.

Options

Options,likefutures,areanestablishedproduct,exchangetradedandcentrallyclearedandusedby
professionals.Options,likefutures,canbeusedtohedgeriskortotakeonrisktospeculate.CFDsareonly
comparableinthelattercase.ThemainadvantageofCFDsoveroptionsisthepricesimplicityandrangeof
underlyinginstruments.AnimportantdisadvantageisthataCFDcannotbeallowedtolapse,unlikeanoption.
ThismeansthatthedownsideriskofaCFDisunlimited,whereasthemostthatcanbelostonanoptionisthe
priceoftheoptionitself.Inaddition,nomargincallsaremadeonoptionsifthemarketmovesagainstthe
trader.

ComparedtoCFDs,optionpricingiscomplexandhaspricedecaywhennearingexpirywhileCFDsprices
simplymirrortheunderlyinginstrument.CFDscannotbeusedtoreduceriskinthewaythatoptionscan.

Coveredwarrants

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Similartooptions,coveredwarrantshavebecomepopularinrecentyearsasawayofspeculatingcheaplyon
marketmovements.CFDscoststendtobelowerforshortperiodsandhaveamuchwiderrangeofunderlying
products.InmarketssuchasSingapore,somebrokershavebeenheavilypromotingCFDsasalternativesto
coveredwarrants,andmayhavebeenpartiallyresponsibleforthedeclineinvolumeofcoveredwarrantthere.

Physicalshares,commoditiesandFX

Thisisthetraditionalwaytotradefinancialmarkets,thisrequiresarelationshipwithabrokerineachcountry,
requirepayingbrokerfeesandcommissionsanddealingwithsettlementprocessforthatproduct.Withthe
adventofdiscountbrokers,thishasbecomeeasierandcheaper,butcanstillbechallengingforretailtraders
particularlyiftradinginoverseasmarkets.Withoutleveragethisiscapitalintensiveasallpositionshavetobe
fullyfunded.CFDsmakeitmucheasiertoaccessglobalmarketsformuchlowercostsandmucheasierto
moveinandoutofapositionquickly.Allformsofmargintradinginvolvefinancingcosts,ineffectthecostof
borrowingthemoneyforthewholeposition.

Marginlending

Marginlendingalsoknownasmarginbuyingorleveragedequitieshaveallthesameattributesasphysical
sharesdiscussedearlier,butwiththeadditionofleverage,whichmeanslikeCFDs,futures,andoptionsmuch
lesscapitalisrequired,butrisksareincreased.SincetheadventofCFDs,manytradershavemovedfrom
marginlendingtoCFDtrading.ThemainbenefitsofCFDversusmarginlendingarethattherearemore
underlyingproducts,themarginratesarelower,anditiseasytogoshort.Evenwiththerecentbansonshort
selling,CFDproviderswhohavebeenabletohedgetheirbookinotherwayshaveallowedclientstocontinue
toshortsellthosestocks.

ExchangetradedCFDsinAustralia
ThemajorityofCFDsaretradedOTCusingthedirectmarketaccess(DMA)ormarketmakermodel,butfrom
2007untilJune2014[16]theAustralianSecuritiesExchange(ASX)offeredexchangetradedCFDs.Asaresult,
asmallpercentageofCFDsweretradedthroughtheAustralianexchangeduringthisperiod.

TheadvantagesanddisadvantagesofhavinganexchangetradedCFDweresimilarformostfinancialproducts
andmeantreducingcounterpartyriskandincreasingtransparencybutcostswerehigher.Thedisadvantagesof
theASXexchangetradedCFDsandlackofliquiditymeantthatmostAustraliantradersoptedforoverthe
counterCFDproviders.

Criticism
SomefinancialcommentatorsandregulatorshaveexpressedconcernaboutthewaythatCFDsaremarketedat
newandinexperiencedtradersbytheCFDproviders.Inparticularthewaythatthepotentialgainsare
advertisedinawaythatmaynotfullyexplaintherisksinvolved.[17]Inanticipationandresponsetothis
concernmostfinancialregulatorsthatcoverCFDsspecifythatriskwarningsmustbeprominentlydisplayedon
alladvertising,websitesandwhennewaccountsareopened.Forexample,theUKFSArulesforCFD
providersincludethattheymustassessthesuitabilityofCFDsforeachnewclientbasedontheirexperience
andmustprovideariskwarningdocumenttoallnewclients,basedonageneraltemplatedevisedbytheFSA.
TheAustralianfinancialregulatorASIConitstraderinformationsitesuggeststhattradingCFDsisriskierthan
gamblingonhorsesorgoingtoacasino.[18]ItrecommendsthattradingCFDsshouldbecarriedoutby
individualswhohaveextensiveexperienceoftrading,inparticularduringvolatilemarketsandcanafford
lossesthatanytradingsystemcannotavoid.

TherehasalsobeenconcernthatCFDsarelittlemorethangamblingimplyingthatmosttraderslosemoney
tradingCFDs.[19]Itisimpossibletoconfirmwhattheaveragereturnsarefromtradingasnoreliablestatistics
areavailableandCFDprovidersdonotpublishsuchinformation,howeverpricesofCFDsarebasedon
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publiclyavailableunderlyinginstrumentsandoddsarenotstackedagainsttradersastheCFDissimplythe
differenceinunderlyingprice.

TherehasalsobeensomeconcernthatCFDtradinglackstransparencyasithappensprimarilyoverthecounter
andthatthereisnostandardcontract.ThishasledsometosuggestthatCFDproviderscouldexploittheir
clients.Thistopicappearsregularlyontradingforums,inparticularwhenitcomestorulesaroundexecuting
stops,andliquidatingpositionsinmargincall.Althoughtheincidenceofthesetypesofdiscussionsmaybedue
totraders'psychologywhereitishardtointernalisealosingtradeandinsteadtheytrytofindexternalsourceto
blame.ThisisalsosomethingthattheAustralianSecuritiesExchange,promotingtheirAustralianexchange
tradedCFDandsomeoftheCFDproviders,promotingdirectmarketaccessproducts,haveusedtosupport
theirparticularoffering.Theyarguethattheirofferingreducesthisparticularriskinsomeway.Thecounter
argumentisthattherearemanyCFDprovidersandtheindustryisverycompetitivewithovertwentyCFD
providersintheUKalone.Iftherewereissueswithoneprovider,clientscouldeasilyswitchtoanother.

SomeofthecriticismsurroundingCFDtradingisconnectedwiththeCFDbrokers'unwillingnesstoinform
theirusersaboutthepsychologyinvolvedinthiskindofhighrisktrading.Factorssuchasthefearoflosing
thattranslatesintoneutralandevenlosingpositions[20]becomearealitywhentheuserschangefroma
demonstrationaccounttotherealone.ThisfactisnotdocumentedbythemajorityofCFDbrokers.

CriticismhasalsobeenexpressedaboutthewaythatsomeCFDprovidershedgetheirownexposureandthe
conflictofinterestthatthiscouldcausewhentheydefinethetermsunderwhichtheCFDistraded.Onearticle
suggestedthatsomeCFDprovidershadbeenrunningpositionsagainsttheirclientsbasedonclientprofiles,in
theexpectationthatthoseclientswouldlose,andthatthiscreatedaconflictofinterestfortheproviders.[21]

Bucketshops

CFDs,whenofferedbyprovidersunderthemarketmakermodel,havebeencompared[22]tothebetssoldby
bucketshops,whichflourishedintheUnitedStatesattheturnofthe20thcentury.Theseallowedspeculatorsto
placehighlyleveragedbetsonstocksgenerallynotbackedorhedgedbyactualtradesonanexchange,sothe
speculatorwasineffectbettingagainstthehouse.Bucketshops,colourfullydescribedinJesseLivermore's
semiautobiographicalReminiscencesofaStockOperator,areillegalintheUnitedStatesaccordingtocriminal
aswellassecuritieslaw.

Seealso
Betexchange Financialspreadbetting Sportsbetting
Bookmaker Futurescontract Spreadtrade
Daytrader Parimutuelbetting Technicalanalysis
Derivative(finance) Predictionmarket Turbo(finance)
Financialbetting Pointshaving

References
1.Section3(a)(65)oftheSecuritiesExchangeActof1934,asaddedbytheDoddFrankAct,availableat:
http://www.sec.gov/about/laws/sea34.pdf,crossreferencingSection1a(18)oftheCommodityExchangeAct,
availableat:https://www.law.cornell.edu/uscode/html/uscode07/usc_sup_01_7_10_1.html
2.Section6(l)oftheSecuritiesExchangeActof1934,asaddedbytheDoddFrankAct,availableat:
http://www.sec.gov/about/laws/sea34.pdf
3.RichardFletcher(March20,2005)."GadgetShopdealunmaskstheCity'ssilenttrader"(http://business.timesonline.c
o.uk/tol/business/industry_sectors/banking_and_finance/article432218.ece).London:TimesOnline.
4."Obituaries:BrianKeelan"(http://www.telegraph.co.uk/news/obituaries/1496088/BrianKeelan.html).London:The
Telegraph.August13,2005.
5."ASXtoceaseofferingCFDsnotice0231.14.03"(http://www.asx.com.au/asx24/content/notices/2014/0231.14.03.pd
f)(PDF).ASX.March21,2014.

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6.FSAbringsforwardCFDdisclosurerulesTimesOnline3March,2009(http://www.thetimes.co.uk/tto/business/in
dustries/banking/article2160916.ece)
7.Griffiths,Katherine(20071113)."FSAcallsformoreCFDDisclosureTheDailyTelegraph13Nov,2007"(htt
p://www.telegraph.co.uk/finance/markets/2819429/FSAcallsformoreCFDdisclosure.html).London:
Telegraph.co.uk.Retrieved20100429.
8."Archivedcopy"(https://web.archive.org/web/20131102211929/http://www.lchclearnet.com/media_centre/press_releas
es/20131030.asp).Archivedfromtheoriginal(http://www.lchclearnet.com/media_centre/press_releases/20131030.
asp)on20131102.Retrieved20131101.
9."ESMAissueswarningonsaleofspeculativeproductstoretailinvestors"(https://www.esma.europa.eu/pressnews/e
smanews/esmaissueswarningsalespeculativeproductsretailinvestors).ESMA.July25,2016.
10."CySECMandatesDefaultLeverage1:50forForexandCFDs,KillsBonuses"(http://www.financemagnates.com/for
ex/brokers/cysecmandatesdefaultleverage150forexcfdskillsbonuses/).finanncemagnets.com.November30,
2016.
11."FCAproposesstricterrulesforcontractfordifferenceproducts"(https://www.fca.org.uk/news/pressreleases/fcapr
oposesstricterrulescontractdifferenceproducts).FCA.December6,2016.
12."IGGroupreassuresinvestorsoverFrenchCfDcrackdown"(http://www.telegraph.co.uk/business/2017/01/09/iggrou
preassuresinvestorsfrenchcfdcrackdown/).TheTelegraph.January9,2017.
13."IrelandlookingtobanleveragedForexandCFDtradingforretailclients"(http://www.leaprate.com/forex/regulation
s/irelandlookingtobanleveragedforexandcfdtradingforretailclients/).LeapRate.March6,2017.
14."ContractfordifferenceMarketrisk"(https://web.archive.org/web/20160423094214/https://www.nsfx.com/aboutnsf
x/riskdisclosure/).NSFX.Archivedfromtheoriginal(https://www.nsfx.com/aboutnsfx/riskdisclosure/)on23
April2016.Retrieved30March2016.
15."CounterpartyRiskinTradingCFDs"(http://www.contractsfordifference.com/risks/Counterpartyrisk.html).2011.
16.ASXtoceaseofferingCFDs(http://www.sfe.com.au/content/notices/2014/0231.14.03.pdf)Archived(https://web.arch
ive.org/web/20150123180859/http://www.sfe.com.au/content/notices/2014/0231.14.03.pdf)January23,2015,atthe
WaybackMachine.
17.Battersby,Lucy(20090824)."ASICraisesalarmovernewCFDtraderisks"(http://www.smh.com.au/business/asic
raisesalarmovernewcfdtraderisks20090823ev1u.html).smh.com.au.Retrieved20100924.
18."Contractsfordifference:complexandhighrisk?"(https://www.moneysmart.gov.au/investing/complexinvestments/c
ontractsfordifference).Fido.gov.au.20090130.Retrieved20150422.
19."Itsagambleeitherway"(http://www.smh.com.au/news/business/money/investment/itsagambleeitherway/2009/0
9/02/1251570744263.html?page=fullpage#contentSwap5).Smh.com.au.20090902.Retrieved20100429.
20."NotLosingKeepsYouFromWinning"(http://www.ibtimes.co.uk/articles/20100415/hownotlosingkeepsyoufrom
winninginthemarkets.htm).www.ibtimes.co.uk.20100415.Retrieved20100429.
21.StuartWashingtonandAdeleFerguson(August28,2010)."Cat'smeat"(http://www.smh.com.au/business/whenbrok
ersaretheenemy2010082713w40.html).
22."https://ftalphaville.ft.com/2015/03/09/2121055/appropriatebucketshopregulationneededandcoming/"(https://ftalp
haville.ft.com/2015/03/09/2121055/appropriatebucketshopregulationneededandcoming/).ftalphaville.ft.com.
Retrieved20170411.Externallinkin|title=(help)

Furtherreading
AndyRichardson,ContractsforDifferenceFAQs(http://www.contractsfordifference.com/contractsfor
difference3.html)
WhatisCFDTrading(http://cfdtradingo.com/whatiscfdtrading/)

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