How to Start Trading CFDs with City Index Asia

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• Publié par: city-index-asia
• Nombre de lectures: 9
• Langue: English

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How to Start Trading CFDs with City Index Asia

PR Newswire

SINGAPORE, June 8, 2012

SINGAPORE

,

June 8, 2012

/PRNewswire/ --

Contracts for Difference or CFDs are a kind of derivative which enables you to

trade on the change in value of an asset without actually owning it. In other

words, you can enter into an agreement with two parties to trade between the

opening and closing price.

With CFD trading, you can go short in a falling market or go long in a rising

market. By predicting a rise in the market, you can 'buy' or go long.

Alternatively, by predicting a fall in the market, you can 'sell' or go short. Both

allowing you to profit.

Traders potentially could increase their ROI by using a CFD, as it is a leveraged

product. This means you can maximise your market exposure for just a small

fraction of investment typically needed to trade the underlying asset directly.

Take for example, if you want to 'buy'

$20,000

worth of Genting Singapore, you

can do this with an initial deposit through your City Index CFD trading account

of

$2,000

- margin of 10% on Genting Singapore shares.

Traders must be aware and remember that a higher leverage can result in

losses that can exceed their initial deposits.

City Index offers a great range of markets to CFD trade on. One in particular is

indices such as the UK 100 and Wall Street. A lot of indices are quoted all day,

which allows you to trade 24-hours a day even if the underlying market is

closed.

So, by CFD trading with City Index Asia, traders are open to a range of benefits.

Keep in mind that trading CFDs on margin can carry high levels of risk, which

may not be suitable for some investors. Consider your personal investment

goals, what your level of experience is and other circumstances that are

relevant in your situation.

About City Index:

Individual traders constantly discover the benefits of derivatives. Many of them

discover these through a City Index trading platform.

City Index is a leading global provider of margined foreign exchange, CFD

trading and in the UK, spread betting. As a group, we transact in excess of 1.5

million trades every month for individuals in over 50 countries worldwide. To

learn more visit: http://www.cityindex.com.sg/