Exchange Traded CFDs in Australia
The majority of CFDs are traded OTC using the direct market access (DMA) or market maker model, but in 2007 the Australian Securities Exchange (ASX) introduced exchange traded CFDs. As a result a small percentage of CFDs are now traded through the Australian exchange.
The advantages and disadvantages of having an exchange traded CFD are similar for most financial products and mean reducing counterparty risk and increasing transparency but costs are higher.
Read more about this topic: Contract For Difference
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