Tombo ..... CFD's have nothing to do a PIO shares ..... they are a market makers CONTRACT FOR DIFFERENCE in price between a punter and that market maker.(CFD provider) and they are loosely based on the daily ASX market action of a companies share but can and do vary in price & spread offered from one CFD provider to another
A short sell on the other hand is when a broker and or individual buys the actual stock, then lends that stock to the punter who is betting the price will drop .... the major difference between the two is a short is secured buy the actual share ... CFD's are not
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Short selling is the sale of a security that is not owned by the seller or that the seller has borrowed. Short selling is motivated by the belief that a security's price will decline, enabling it to be bought back at a lower price to make a profit. Short selling may be prompted by speculation, or by the desire to hedge the downside risk of a long position in the same security or a related one. Since the risk of loss on a short sale is theoretically infinite, short selling should only be used by experienced traders, who are familiar with the risks.
