CFDs Explained With Examples Contracts For Differences (CFDs) are one of the more popular derivatives in the financial world

CFDs Explained With Examples Contracts For Differences (CFDs) are one of the more popular derivatives in the financial world. That being the case, there are still many who do not understand how CFDs work, or even what they are used for. Although no firm figures are available as trading is over-the-counter, it is estimated that CFD related hedging accounts for somewhere between 20% and 40% the volume on the London Stock Exchange (LSE). A number of people in the industry back the view that a third of all LSE volume is CFD related. The LSE does not monitor the numbers but the original 25% estimate as quoted by many people, appears to have come from a LSE spokesperson. As a member of PhillipCapital, Phillip CFD is proud to be the first stockbroker to introduce CFDs to Singapore. Since 2003, we have taken the initiative to bring in a wide suite of products to enhance our clients’ investment universe, one of which is the Singapore Straits Times Index CFD to allow clients to track and trade the underlying Singapore market. Phillip CFD also offers over 400 Singapore listed shares CFD, which is the most extensive in Singapore, and many other shares from Asia and USA. Phillip CFD also won the award of being Singapore’s largest CFD provider by market share for 2010, 2011,2012 and 2013. The contract for difference, as the name implies, is a contract between a buyer and a broker or other selling institution to exchange the difference between the purchase price on the contract and the price at which it is sold. Buying or selling a CFD serves as a proxy for buying or selling an underlying asset, without the need to actually exchange the asset. Certain markets require minimum amounts of capital to day trade, or place limits on the amount of day trades that can be made within certain accounts. The CFD market is not bound by these restrictions, and traders can day trade if they wish. Accounts can often be opened for as little as $1,000, although $2,000 and $5,000 are also common minimum deposit requirements.related articles: