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Submitted by: Catherine Mcdowell
CFD or Contract for Difference is a financial tool that gives you an opportunity to make money through share markets. Typically, CFD is an agreement to exchange the difference in value of a particular share between the time at which a contract is opened and the time when it is closed. This is explained here with some examples of CFD shares and CFD Singapore.
CFD trading is quite similar to normal share trading. However, there is one aspect about CFDs that distinguishes and makes them popular than regular share trading. A CFD can be traded at leverage. This means you do not have to pay the full value of shares when you place a trade order. You only have to pay 10% of the contract value. It allows you to trade up to 10 times of the contract value increasing your potential to earn more money with smaller investments.
When you close a contract, the difference between your opening price (purchase price) and closing price (sale price) is realized. With CFD Singapore, you can book profits in rising as well as falling markets. This is yet another important element of CFD. It gives you an opportunity to trade widely. You can deal across a large segment of the market. For example, if you have an interest in Singapore and US shares, the level of Wall Street, and the exchange rate of the US Dollar against the Euro, you can deal in all of these segments with one CFD provider on a single account.
CFD Trading requires you to have a platform. There are several online platforms available for you to choose from. You get the needed flexibility and convenience from them. You can trade online from the comfort of your home. These platforms also offer additional services too! Here is a rundown on what you can expect from a CFD trading platform:
Benefits Of A Trading Platform
* Trading tools.
* Real time news and research.
* Market Analysis like Week-Ahead, technical analysis, overnight prices, FX Focus, etc.
* Educative seminars.
* Morning briefings.
* Enhanced charting.
* Live prices.
* Advanced Technology.
* Huge range of markets like Forex, shares, indices, commodity, equities, binary trading, Options, etc.
* Competitive rates.
Here is an example of CFD Singapore trading. For instance, you open a short position on Singapore airlines and the market price is $10.30/10.32. You go short on 1000 shares at 10.30 bid price and pay a commission of 0.20%. Now, if the market falls and you close the trade at $ 9.80, the difference in the opening and closing price is your profit. Multiply that amount with the number of shares held by you.
CFDs can be very rewarding. However, they also carry high risk to your capital. You have to watch the market carefully before investing money. If you are new to CFD, then it makes sense to seek advice from professionals. There are industry experts who can guide you with the specialist advice. There are many advantages of CFD Singapore. Go ahead and invest in this financial instrument!
About the Author: CFD Singapore is a tool that enables you to invest in shares at leverage. You do not have to pay the full value of shares while you purchase a position. You only have to pay 10% of the total value. This means that, you invest less capital in trading. Visit us:
igmarkets.com.sg
.
Source:
isnare.com
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