SSFs and CFDs

[Sirah]

Hi Simon. Pliz help. What is the difference between CFD & SSF since big institutions now offer them.eg Nedbank on CFDs.

[SimonPB]

In sort nothing really. In reality, SSF's are exchange traded, CFD's are OTC (over the counter). One other diff is that with a CFD interest is removed (for longs) from your account daily where as with a SSF you pay upfront for the entire contract but essentially get refunded when you sell for the un-used period.

Bottom line is that profit = same.

[B_man]

Also with SSF profit is added / removed at night, while CFD only when you close out.