CFD 101

What is CFD Trading?

Contracts for Difference or CFD 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 or index and its value at the contract’s end.

Why Trade CFDs?

The Ability to Perform Short Selling

CFD 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 and vice versa. In other words, it gives investors a flexible tool.

CFD Provide 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 thus optimizing investor’s capital.*

(* Refer to Disclaimer)

How to Trade CFDs?

 

 

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