Different types of trading take place in the financial market. Some people trade in shares, some trade in stocks while some may trade on the price of these.

What is CFD?

The trade on the price of financial instruments is called CFD or contract for difference trading. Just in gambling, people bet on the outcomes of a game, in the same way, in CFD, traders put their money on the rise and fall in the prices of the financial market. This market could be a stock market, Index market, currency market, and so on.

Why CFD?

There are many potential benefits of CFD trading in Singapore, some of which are:

  • Since CFD trades on leverage, it increases the purchasing power of individuals while at the same time investing money via CFD.
  • CFD allows short selling. So you can buy and sell CFD whenever you wish to.
  • CFD also allows trading small and thus helps in reducing risk. Note that no such investment can ever be risk-free.

In case you want to know more about CFD trading, you can contact the companies providing the same. One such company is Phillip. Phillip offers CFD trading and equity contracts worldwide.