What are the intricate differences between SSF and CFD?

The similarities are that both take into account interest and settled daily thus looks more or less the same pima facie.


The basic difference is that CFDs are over-the-counter products and SSF are exchange listed products.

This does not, however, hold entirely true anymore as some CFDs are listed (example, http://www.asx.com.au/products/asx-listed-cfds.htm ).

But the historical reason for CFD's origin was that over-the-counter products could provide more leverage and such products were easier to register and distribute and hence more exotic products could be created. Also, CFDs can take exposure to markets that exchanges would not touch (for regulatory reasons), such as the A-share listed Mainland Chinese markets.

| improve this answer | |

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Not the answer you're looking for? Browse other questions tagged or ask your own question.