Is your lack of holding power stopping you from trading the short-term volatility of the equity markets? You can now increase your trading capacity using Contracts for Difference (CFD) trades. CFDs are traded on margin, which allows you to trade an underlying asset by paying for only a fraction of the full value of the asset.
High leverage
At City Index, our initial margin requirement is as low as 10% for stock CFDs. The high leverage means that you as a trader will gain much greater exposure to the equities that you are trading on. At the same time, you will be freeing up your available capital for other investment targets.
Hedging instrument
You can also use CFDs to hedge against price declines in your long-term investment portfolio. CFDs help to offset the paper losses of your existing portfolio assets with the profits that you make when you short the portfolio assets in a falling market.
Volatile markets
With CFDs, you can trade on either rising or falling markets. This allows you to make profits by taking a short position when a market is falling. Conversely, you could make losses if you take a short position in a rising market.
Sign up a for free seminar:
Title: "Unleash your trading edge with price action and volume analysis"
Date: 4 June 2009
Time: 7-9.30pm
Venue: SGX Auditorium, SGX Centre 1, Level 2, 2 Shenton Way
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14 years ago
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