Thought I would have a go at CFDs in the small-cap area: initially ASC (ASOS) perhaps then YOO (yoomedia) and (AZM) Alizyme. However, I gather that finspreads, for instance, limit themselves to FTSE 100 and 250. Who operates in this area or is it seen as too volatile for the operator?

Eric

GNI
But you will still have to be at the mercy of the MMs and not on the book itself like SETSmm or SETS

MM = Munch! Munch!

Shares quote said that one third of all SE transactions were linked to CFDs. I assume it is possible to operate these on small cap shares. Advice, please.

Eric

Yes you can trade CFDs on small cap shares, min was over 50M mkt cap but may have changed now... I don't like to do CFDs on too small a share as it is difficult to get in and out cos MMs mess about as usual and if you are short more than likely special borrow and high margin

Jumpin

Thanks for that. Blue Index seem to be the guys. They appear to do all the smallcap shares. Something valued at 50K, as ASC and YOO, they would only give 30% gearing; whilst AZM, cap 175K, would be 20%. They are the guys who write of CFDs in Shares and are very helpful. No specific minimum stake and you trade at normal prices. Will write on this bb again to report experience.

Eric

Interested. Just openned a Barclays CFD account. Use their stimulator. Contracts about 17.50. Anybody have cheaper contracts. Can they be run in a sipp account. Probably not.




Sorry simulator account. VGood but limited to too few companies.

Fred1new

Don't like Barclays: one of these immoral, filthy rich, clearing banks! Got good help on the ASC bb, where johngtudor suggested cantor or blue index. Cantor have too high an entry point, 25K, so am progressing blue index. Very helpful on the phone and my application is currently being processed. They are the guys who do the CFD column in Shares and know what they are talking about. Commission is 0.5% which is not too bad. You but at current market price without any hike. Will report how it goes. They will do most of the small-caps which seems to set them apart. Worth also having a look on the ASC column at the discussion there. ASC is a must anyway so I hope you have a decent holding!

Eric

Blue index charge 50 min per trade both sides = 100 and they don't deal under 34 mill cap's .

aldwickk

Thanks for that! Hadn't found that bit of small print, yet. I'd seen 5K as necessary to be worthwhile anyway, so 50 not too bad. Wondering how they control their exposure, unless they lay the risks off elsewhere.

Eric

100min ... rip off!

Fred1new - I know E-trade do CFDs in SIPPs if you are interested.

Also Blue Index deal at 2% stop loss 4% limit sell .