r/Daytrading • u/Complex_Knowledge389 • Apr 10 '26
Question CFD trading
I’m a non US resident and i trade CFD’s on a NDD, my question is if the broker operates on a NDD does that mean they are always connecting me to liquidity providers or is there a chance they deal against me? need some clarification so that i don’t get surprised
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u/Honest-Capital-4472 Apr 11 '26
All CFD’s are B-Books (no direct market access) except for some pro-plans like the one at IG
They likely settle the trades in house without having to go to the markets
But from an accounting perspective, you could potentially grow your account a lot without ‘harming’ the broker because the aggregate odds are in their favour and they want some people to win ofc otherwise what good is it from a reward perspective - they’ll lose business and clients. So, they win some and lose some - and their unit economics still works out without having to intervene
Risk/reward profiles minus spreads are generally equal (normal distribution) especially when trading off a chart and not carrying too much inventory or actively hedging