Dwayne Buzzell Posted September 30, 2019 Report Share Posted September 30, 2019 CFD is an acronym that stands for Contract for Difference. This is a contract between a broker and a trader in relation to asset value change over time. Before you start trading in CFDs in the Singapore market, there are several factors you need to consider. This beginner’s guide is an easy to understand solution to all the questions you may have about CFD trading. How CFD trading works As a CFD trader, you do not own any commodity, share, or index. Instead, you base your trade on judging whether an asset’s value will rise or fall. As a trader, you are only required to put down a deposit to be able to trade. This is termed as trading on margin. If you correctly predict a trade’s outcome, the seller will pay the difference between the new asset value and the initial buy price. In reverse, if you as the trader makes a wrong prediction on the sale, you are required to pay the difference. The spread This is the difference between the offer (buying price) and the bid (selling price). The offer price is the ‘ask’ or the amount the trader can buy at while the bid is the amount at which traders can sell. The bid is the lower price of the two. What you can trade on As a CFD trader, you can trade in stock indices, equities, commodities, and currencies. You may be able to trade for 24 hours every day for five days a week. Trading shares You can buy shares CFDs which makes it possible for you to benefit from trading shares without actually owning them. You can also short sell the stock where you can predict that the shares will fall by a certain margin the next day. If the shares fall, you make money. Trading indices As a trader, you can buy indices for numerous global indices. These track the performance of higher stock clusters. A famous example is the US S&P500 and the Singapore Straits Times index. Trading commodities As exciting as price fluctuations are in various commodities, sometimes owning the actual commodity is not what you are after as a trader. CFD makes it possible for you to trade in commodities without owning them. For instance, you can trade in oil without having to have oil. Trading crypto currencies Some brokers in Singapore offer CFDs for crypto currencies such as ethereum and bitcoin, among others. While crypto currency trade is a volatile market, the benefit of CFDs is not having to own the currency. Therefore, you can predict a rise or fall in the currency price and still make money. Fees for trading CFDs If you want to start trading CFDs in the Singapore market, you need to understand the costs involved. When trading regular shares, you are required to pay your broker a commission fee. This is usually a percentage of your investment. The type of price varies based on the product you are interested in trading. Forex including crypto currencies – these work on spreads basis. The broker will earn a commission of the amount you transact. Because of the volatile nature of these markets, some brokers have a minimum spread they charge. The spread for these commodities is usually between 0.6 and 0.7, depending on the broker. Indices – just like forex trading, when investing in index CFDs, the broker charges a spread. Index trading is less volatile when compared to forex trading. Therefore, the spread is always the amount stated. It varies between 0.2 and 0.3. Shares – when trading share CFDs, the commission price charges is a fixed percentage. For leveraged trades, brokers will charge a funding cost to enable them to keep the position open through the night. Commodities – a broker will also charge a spread for trading commodity CFDs. The type of product traded determines the spread charged. Some commodities attract a higher spread than that in forex trading. For examples, volatile commodities such as oil can heave spreads of up to 2.8. Conclusion Trading CFDs may seem a hard task if you are beginning. However, with the right broker, your new CFD trading venture will be a worthwhile investment. Link to comment Share on other sites More sharing options...
Michael Butcher Posted June 21, 2021 Report Share Posted June 21, 2021 I suppose the guidelines can help, but you need to know a lot of information before trading. I think that before entering the market, you need to study all the information about the market, trading, brokers. It was hard for me as newbie to choose the right broker. I searched a lot of sites in order to find smth good. I also spent a lot of time looking for a broker and accidentally found this site Finarm, which has a whole bunch of different companies listed. It's pretty convenient and can give you some insights. Link to comment Share on other sites More sharing options...
Nancy parez Posted June 21, 2021 Report Share Posted June 21, 2021 This is really very helpful article. I will appreciate you, And thanks for this informative article. Link to comment Share on other sites More sharing options...
maspluto Posted June 22, 2021 Report Share Posted June 22, 2021 The selection of existing brokers must be able to be considered properly, so it is important for traders to be more leverage in surviving and becoming a trader of the month with Tickmill. Link to comment Share on other sites More sharing options...
AkashHasan Posted June 22, 2021 Report Share Posted June 22, 2021 Trading with CFD is a very hard task if you are the newbies. However, traders should gain enough knowledge on trading and practice in demo account. Moreover, a good trader always look for the better brokers like FreshForex which is regulated and stable company. It protects the traders privacy and provides huge offers and bonuses for depositing and withdrawing. Link to comment Share on other sites More sharing options...
Resolve Posted June 29, 2021 Report Share Posted June 29, 2021 On 6/22/2021 at 4:05 PM, AkashHasan said: Trading with CFD is a very hard task if you are the newbies. However, traders should gain enough knowledge on trading and practice in demo account. Moreover, a good trader always look for the better brokers like FreshForex which is regulated and stable company. It protects the traders privacy and provides huge offers and bonuses for depositing and withdrawing. I have seen many of the traders are doing their trades in the CFD and they can get the profits if correct trading approach is being used by them. Link to comment Share on other sites More sharing options...
David Max Posted June 29, 2021 Report Share Posted June 29, 2021 My moto in trading is slow and steady win the race. Without proper risk and money management trading is not ideal. Forex is a risky market. Traders should always manage their risk. Otherwise they can lose all capital in couple of trade. I am currently trading with Tpglobalfx. They provide me all essential tool to be make profit from trading. Link to comment Share on other sites More sharing options...
uncle gober Posted June 30, 2021 Report Share Posted June 30, 2021 the funds and risks that exist must indeed be able to be considered properly, this is done so that traders can become better and can be maximized in getting the security and comfort of trading while on a real Tickmill account. Link to comment Share on other sites More sharing options...
Resolve Posted October 12, 2021 Report Share Posted October 12, 2021 On 6/30/2021 at 9:57 AM, uncle gober said: the funds and risks that exist must indeed be able to be considered properly, this is done so that traders can become better and can be maximized in getting the security and comfort of trading while on a real Tickmill account. We should make more Efforts so gain the profits from the Forex Trading Business. Link to comment Share on other sites More sharing options...
maspluto Posted October 14, 2021 Report Share Posted October 14, 2021 in forex it will never be instant, so it is important for traders to be able to be more optimal in generating profits while on a real account with Tickmill. Link to comment Share on other sites More sharing options...
mlawson71 Posted October 14, 2021 Report Share Posted October 14, 2021 Something important to keep in mind about trading CFDs - many regulators all over the world have significantly capped leverage for them. Link to comment Share on other sites More sharing options...
Resolve Posted October 18, 2021 Report Share Posted October 18, 2021 On 10/14/2021 at 7:46 PM, mlawson71 said: Something important to keep in mind about trading CFDs - many regulators all over the world have significantly capped leverage for them. We can start our trading with minimal Efforts if we have the Trading Experience. Link to comment Share on other sites More sharing options...
BTCETH Trader Posted October 25, 2021 Report Share Posted October 25, 2021 On 10/18/2021 at 8:20 PM, Resolve said: We can start our trading with minimal Efforts if we have the Trading Experience. We should never forget the importance of Timing in doing our trades. Link to comment Share on other sites More sharing options...
Resolve Posted October 25, 2021 Report Share Posted October 25, 2021 27 minutes ago, BTCETH Trader said: We should never forget the importance of Timing in doing our trades. I have been doing my trading with the use of Proper Timings to the Markets. Link to comment Share on other sites More sharing options...
BTCETH Trader Posted October 25, 2021 Report Share Posted October 25, 2021 7 hours ago, Resolve said: I have been doing my trading with the use of Proper Timings to the Markets. We will need to make use of a Trading system that is Reliable. Link to comment Share on other sites More sharing options...
maspluto Posted October 26, 2021 Report Share Posted October 26, 2021 the existing trading system must be able to be considered properly, this is done so that traders can become better and can be more optimal in generating profits that are in line with expectations together with Tickmill. Link to comment Share on other sites More sharing options...
Resolve Posted October 27, 2021 Report Share Posted October 27, 2021 On 10/26/2021 at 7:40 AM, maspluto said: the existing trading system must be able to be considered properly, this is done so that traders can become better and can be more optimal in generating profits that are in line with expectations together with Tickmill. We will need to understand that the Trading System that we are using must be Perfect and Profitable for us. Link to comment Share on other sites More sharing options...
Hanan Öberg Posted October 24, 2023 Report Share Posted October 24, 2023 Cryptocurrencies are a trendy topic now. Traders are finding growing interest in crypto trading. FXOpulence charges low trading spread in this pair so it will increase your return. The broker not only allows crypto trading but also allows depositing and withdrawing in crypto. Link to comment Share on other sites More sharing options...
pradegxs Posted October 24, 2023 Report Share Posted October 24, 2023 I also like to trade CFDs with Hotforex, really cheap alternative to stocks or currency futures trading. What I also like about Forex brokers is that you don't need to bother any tax forms, pay taxes etc. All profit goes into your pocket. Link to comment Share on other sites More sharing options...
maspluto Posted October 25, 2023 Report Share Posted October 25, 2023 The choice of a broker should be carefully considered, as the broker serves as a bridge for traders to engage in forex trading. That's why I chose to join Tickmill as my broker, and here I can comfortably and safely engage in forex trading. Link to comment Share on other sites More sharing options...
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