The short answer to both questions is no – most of the time.
In the words of Beach J of the Federal Court, CFDs are “little more than gambling”. ASIC has also identified that more than 70% of retail clients who trade CFDs lose money.
For insurers of financial institutions and professional advisors, CFDs create different but significant risks. In this article, Charu Stevenson, Samantha Younane and Nicholas Darwen shine a light on some of the key issues.
You can download the full article below.