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CFD Trading

Hi,

I reside in the EU, so technically I can trade cfd. through IB

However, is it possible to do that through QuantConnect?

I know that requesting cfd data is only possible via Oanda, but is there a way to just place a cfd order via IB?

 

Thanks

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


Hi Mike,

Right now, even as an EU resident, it is not possible to trade CFDs via IB. We plan to enable CFD trading via Interactive Brokers sometime in the future but we can't provide a timeline right now.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


hey, I would like to ask you what does CFD trading stand for? Just curious as I'm a newbie and I only know that there exists trading on Forex. Is it a different thing?

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Hello Max, CFD = contract for difference. Should be googleable.

Very shortly: Rather than owning the underlying security, currency or derivative, your "broker" (this is technically not a true broker as there are important legal differences) enters with you a contract. This contract specifies that if the position moves in your favor (calculated from the underlying, quantity, time/price of entry), the broker will have to pay you. If the opposite happens, you will have to pay your broker. In short, it simulates owning the underlying security? Why would anyone want that? There are miscellaneous reasons including taxation, accessability of underlying securities, etc. Cfds have earnt a bad reputation as there are a lot of unserious brokers in the space in addition to a few alright ones - if they don't issue corresponding trades in the underlying security/derivative the broker is effectively betting against you. By supplying too much leverage on incompetent customers the broker can guarantee the customer will blow their account and even get into the negative (i.e.get liable more than their deposits). Fortunately there is increasing regulation, e.g. ESMA followed by Oanda.

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The material on this website is provided for informational purposes only and does not constitute an offer to sell, a solicitation to buy, or a recommendation or endorsement for any security or strategy, nor does it constitute an offer to provide investment advisory services by QuantConnect. In addition, the material offers no opinion with respect to the suitability of any security or specific investment. QuantConnect makes no guarantees as to the accuracy or completeness of the views expressed in the website. The views are subject to change, and may have become unreliable for various reasons, including changes in market conditions or economic circumstances. All investments involve risk, including loss of principal. You should consult with an investment professional before making any investment decisions.


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