What is CFD Trading?
Contracts for Difference or CFDs allow you to speculate on future price movements of the underlying asset, without actually owning the underlying asset. It is a tradable contract between you and Phillip (also known as a CFD Provider), who are exchanging the difference in the current value of a share, commodity or index and its value at the contract’s end.
Why Trade CFDs ?
The Ability To Perform Short-Selling
CFDs allow short selling, for any duration you wish. As opposed to Buy Low and Sell High, investors can now sell first when the price is high and buy it back when the price drops.
CFDs are Traded on Leverage
CFDs are traded on leverage. The capital outlay to open contracts will be only a fraction of the market value. Lower margins allow traders to have a higher buying power.
Access to Global Markets
Phillip offers equity contracts from Singapore, United States, Hong Kong, China, Malaysia, Australia and Japan while we have a wider spectrum for World Indices CFD.
How are CFD Trades Done?
We do not add any spreads for Equities CFD and Direct Market Access(DMA) CFD. Prices quoted on CFDs mirrors the prices quoted on the normal stock market.
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
Basics to CFD Trading