Q on CFDs vs Warrant

[#1]

Simon, went to the course on CFD's last night. Very informative and I think I definately like them better than SSF etc. Never traded SSF cause of the complex interest and costing issues. CFD's seem transparent but a few observations and maybe a qestion or two.
Warrant has a fixed spread and fixed costs (brokerage SST etc) but time decay and gearing could be against you if you miss the timing.
CFD has fixed costs (brokerage but no SST if I figure it right) plus comm plus interest (interest daily). CFD is more liquid as you dont have to move through spread of warrant and can exit at any stage.

Example you buy call a warrant at 20c (R20k worth so 100k warrant with conv ratio of 100:1 so exposure to underlying is 1000)(underlying is R20) to get to 21c and a profit (also able to exist warrant) the underlying has to move to R22.
Now problem with warrant is underlying only goes to R21,99 and pulls back (no profit) and stays range bound for a week - time decay kills you cause now at R22 the warrant is still worth 20c so existing you loose entry and exit brokerage. Unlucky!!

You buy same senario on CFD and same exposure might cost you only R5K for 1000 CFDs. Same move on underlying but you can and do get out at R21,80 (profit of R1,80x1000=R1800-00 less brokerage, comm and interest etc maybe R400 = R1400 profit) percentage much higher at about 28% opposed to 5% on warrant. So far I hope i am correct?

[#2]

Other than the share price moving against you (in theory you could still exist at R20 and still have a small loss but nothing horrible - unless it gaps down to R15 or something silly - not impossible but part of the risk) and much higher gearing. If it did gap down to R15 your loss (on exposure) is then 1000xR5 so R5k?

Why do i get the feeling I am missing something?.... The phrase ïf it sounds to good to be true..." fills my head at this point...

[SimonPB]

First comment, you say "if you miss the timing" .. it is always about timing, don't believe for one second that timing is not critical .. warrants an cfd's as liquid as each other coz both are hedge so as liquid as the underlying .. spread, yes you are correct, tis why I like `expensive' warrants ..