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Alexande, Thanks very much for the answer. It confirms my thoughts on Cfds. I will look into American Brokerages and “Professional” status.
I am a European Investor and I do not have access to US Etfs and I believe per your advice that I would have to use Cfds to trade the various strategies. I can see the logic of this, however I am worried at the amount of leverage that is used by say Interactive Brokers when you buy a CFD. Your are roughly leveraged at 5/1 and only have to put up 20% of the deposit. The problem for me arises when you lose something like 10% in a month. With this amount of leverage, this amounts to a 50% loss.
Normally, you are advised when trading with CFds to set a tight stop/loss on account of the effects of leverage. Can we use stop/losses with your various strategies or it there another way to trade your strategies without having to buy Cfds.
