Share CFDs are one of the main types of CFDs, also known as equity CFDs. The CFDs typically offered are derivatives of shares registered on the US S&P 500, NASDAQ, and Dow Jones 30, in addition to Germany’s DAX, London’s FTSE, France’s CAC, along with other markets from Europe. Brokers from the Asia Pacific region usually have CFDs for stocks from the ASX in Australia, the SGX in Singapore, and the Nikkei in Japan.
Obviously CFD providers will adjust their available products and services to reflect the demand of their clients. It is important not to restrict your strategy, though, due to the fact that CFD trading platforms typically let you utilize the entire collection of price matricies that the CFD broker offers.
If you’re dealing with brokers for synthetically priced CFDs, you will be given bid and offer (two-way) prices, while Direct Market Access (DMA) brokers’ CFDs will more closely reflect the market. It is worth noting when going into a new market that each method of pricing presents unique opportunities for traders to take advantage of.
| We recommend AvaFX for CFD trading. Commission free, 200:1 spreads and reliable 24hr support. Click here to trade! |
|---|
One of the top things that determine if a provider offers DMA pricing is whether that provider has locations in the countries of the markets in question, in addition to relationships with domestic members of those exchanges. More and more CFD providers are offering DMA pricing these days, and the range of markets it is available for is also expanding.