I was reading through a CFD broker’s customer agreement form. This CFD broker is a market maker and below are some of the extracts that you should be aware of, especially trading with a market maker:
Your orders are not reflected in the exchange
When you enter into any transaction with us through our Platform, you will be entering into an off-exchange (sometimes known as an over-the- counter, or ‘OTC’) derivative, which is non-transferable. This means you will enter into transactions directly with us, and also that those transaction greater risk than investing in a financial instrument such as a share which is transferable, or dealing in an exchange-traded derivative, because your ability to open and close transactions is dependent on our Platform being in a position to accept orders from you and to execute them. In certain circumstances this may not be possible.
The broker sets the price
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