Direct Market Access (DMA)

In case of Direct Market Access (DMA), both the CFD prices and liquidity remains equal to the underlying market. This is why traders or investors can enter positions at the identical market price when it comes to direct market access. Investors who follow this particular model are termed as the DMA CFD traders.

Now there is another CFD model that you will find in the market which is known as the “Market Maker Model”. Under this model you will find two way prices which are usually determined based around the underlying market price where some CFD providers may guarantee the market price. However for others, no obligation is there to match the exchange bid and offer. In such cases it is the CFD suppliers who will be controlling the entry and exit point of a trader.

Direct Market Access Contracts For Difference

Under the Direct Market Access, each and every CFD order is placed as a share trade through the platform of the Australian Stock Exchange (ASX) where the order will appear in the queue of bid and ask. One of the main advantages that you will enjoy in case of the Direct Market Access model is that you can monitor the entire trade all by yourself and will get the guarantee of being filled at the exchange price which is identical- means more transparency. In addition to this, the market liquidity offered in this case is going to be the actual liquidity pool of the Australian Stock Exchange.

DMA CFDs

The DMA model will also allow you to have that power of moving the market as your CFD order will actually appear in the actual stock market and you will have that opportunity to receive partial fills. In addition to this, you will be allowed to take part in both the pre-opening and pre-closing price auction of the stock exchange where you will be able to place, amend and cancel orders without being executed instantly. Around 10 percent to 15 percent of the entire stock market volume is usually transacted in the opening price match while in the closing price match an additional 5 percent to 15 percent of the market volume is transacted.