Shares CFD
Large range of Singapore counters
Phillip CFD provides Shares CFD on Singapore (SGX), Hong Kong (HKSE), Malaysia (KLSE) and United States (NYSE & NASDAQ). We have more than 400 Singapore Shares CFD to long and short, and a good selection of the most liquid stocks on the other markets.
Price Transparency
In Shares CFD trading, the brokerage firm acts as the liquidity provider for all clients trading with them. The firm creates its own ‘artificial market’ for the product, and is able to quote its own prices for the stocks.
CFD prices typically track the prevailing market prices but for other CFD providers, an additional spread could be quoted between the bid and ask prices. This spread is normally where profits are earned for the risk incurred when it provides liquidity for its ‘artificial market’.
Phillip CFD does not quote any additional spread on top of market spreads on Shares CFD, so the CFD Bid & Ask prices would be exactly the same as the cash market Buy & Sell prices.
How are CFD trades done?
Clients can trade on the market price with no extra spreads, and their Shares CFD trades are honored when the ask/bid price is the same as the client’s buy/sell order quoted on the CFD platform, and would not be based on the last done prices. For instance, the cash price of Stock LLL is:
| BUY | SELL |
|---|---|
| $1.00 | $1.01 |
Then the prices of Stock LLL would be:
| BUY | SELL |
|---|---|
| $1.00 | $1.01 |
If Client X would like to buy with Shares CFD at prevailing market prices, he could submit an order to buy at $1.01 to get the order done now. Alternatively, he could choose to queue at a lower price by submitting a limit order for a lower price such as $0.98, but his order would only be done if the Ask price reaches to $0.98.
If he would like to sell at prevailing market prices, he could submit an order to sell at $1.00 to get the order done now. He could choose to queue at a higher price by submitting a limit order for a higher price such as $1.05, but his order would only be done if the Bid price rises to $1.05. Do take not that in the case of Shares CFD trades, the orders may or may not be reflected on the exchange. Orders which are submitted between the current bid/ask spread or orders which are worse off than current bid/ask prices would be rejected, however this does not affect advanced orders sent via CFDTrader.
Do note that any limit order for Equities CFDs submitted at prevailing market bid/ask prices exceeding the following limit(s) might be rejected or delayed subject to our approval:
Shares CFD (whichever has a lower contract value)
- Maximum quantity per order: 500,000 shares
- Maximum contract value per order: S$500,000
Order Types
Clients are able to trade Shares CFD on both POEMS and CFDTrader 2. With CFDTrader 2, there are advanced orders types such as Stop Limit, Trailing Stop Limit, If Done, OCO, Contingency to choose from for Shares CFD.
