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S&P 500 Hits All-Time Highs - CFD Lesson Included

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Direct from the desk of Dane Williams.



And there we go.

In the midst of a global pandemic, the S&P 500 has hit record highs.

"Overnight on Wall Street, the S&P 500 erased its coronavirus losses as it rose to an all-time high. The broader market index advanced 0.2% to 3,389.78, a record close."

Or so CNBC tells me...

My retail MT4 forex broker runs some sort of synthetic CFD on the index and on my charts, you can see below that we're a bit short.

SPX Daily:

Take this as a reminder that CFDs are nothing more that synthetic markets, that can really be priced however the broker chooses to price them.

There's not a whole lot we can do as retail traders, but it's another risk management condition that you should always consider when choosing which markets to trade.

Best of probabilities to you,

Dane.



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