What is CFD?
Contracts For Difference (CFD) has been a popular trading tool for
the active investors in many countries like the United Kingdom,
United States, Australia, and is now making inroads to
Singapore.
Phillip CFD is an investment instrument that allows
you to participate in the price movement of an underlying share.
The CFD contract is an agreement to buy (Long) or ‘short-sell’ (Short) an underlying
share. Investors increasingly look to CFD to profit in both the
rising and falling markets.
Benefits of trading Phillip CFD
Trading CFD is similar to share trading. However, no share
ownership is involved as it is a derivative suited for investors
who want to benefit from the price movements of the underlying
share. Therefore, CFD trading overcomes the hassle of share
clearing and settlement, offering investors greater trading
convenience and better features as to normal share trading.
 Portfolio Diversification
Convenience to Short Sell
Leverage
30 Calendar Days "CONTRA"
Sophisticated Trading Strategies
CFD vs. Shares Trading
| CFD Trading |
Shares Trading |
T + 30 calendar days settlement
Take better advantage of the market price movement with our longer
30 calendar days ‘CONTRA’ deadline. |
3 market days
Take advantage of the market price movement with a 3 business days
‘CONTRA’ deadline. |
Low Margin Requirements
Phillip CFD allows you to hold a more diversified portfolio when you can leverage up to 10 times on your initial capital. Trade from margin requirements as low as 10%, which is mark-to-market daily. |
3 times investment power
Traditional Margin Trading offers clients a 3 times leverage on
your initial capital.
|
Convenience to short-sell
CFD is the only trading tool that allows you to ‘short-sell’ shares effectively without having to borrow them. It allows investors to overcome ‘short-selling’ restrictions in many of the active stock exchanges. |
‘Short-sell’ using SBL
account
Before ‘short-selling’, you are required to borrow the
shares via the Share Borrowing & Lending (SBL) account.
|
* Please refer to Phillip CFD Information Sheet for more details
on cost and others. |
