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0

When you enter a position with CFD, you're buying it from the CFD provider. And you can only sell it back to the CFD provider for the value of the underlying. So if AAPL is trading at \$100, you can only sell the CFD back to broker for \$100. If you're a CFD buyer, why would you buy the contract for more than \\$100. If you're a CFD seller, why would you sell ...

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I might be wording this answer incorrectly so if some law expert wants to correct anything, please feel free. It is my understanding that CFD are contracts you pass with your CFD broker. So, this contract has a value as long as your broker exists and hasn't decided not to pay you. So, in a sense, the price is just set by the agreement between you and him. ...

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This simply suggests the linear model is a poor fit in high frequency. But is this that surprising, even before you crunch the numbers? I argue not, for the following reasons: Even at low frequencies (i.e. monthly or annually), it is known that the classical CAPM (which is what you're running, albeit at a much higher frequency) does not fit well. It'd be ...

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A high R-squared (1.0) means that you can explain the movements of one time series using the other. The lower your R-squared is, the worse your explanation is -- that includes the 'quality' of your beta. You can try to improve your R-squared score using different regression types. Beware of overfitting.

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The direction of the relationship cannot be determined from just this information (a set of correlation coefficients). You need to estimate a model of volume based on lagged volume and lagged returns, checking if the lagged return terms are significant. Then as a second step you estimate a model of returns that includes past returns and past volumes and see ...

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