Avoid currency exposure when trading indices and commodities with SGD-denominated CFDs, available exclusively from IG Markets.
Traditionally, if you trade on an overseas index you will trade in its natural currency. This means you are not only taking on the underlying market but you are also exposing yourself to currency risk. So, even if your trade is successful, your profits may be eroded away by exchange rate fluctuations.
SGD-denominated CFDs allow you to simplify your strategy by trading a select group of international markets in Singapore dollars. By trading in Singapore dollars you take currency exposure out of the equation, allowing you to focus on the movement of your position.
Trading SGD-denominated CFDs offers a clean and simple solution as it enables you to keep track of your total exposure and easily interpret your profit and loss. You can also trade in lot sizes from as little as SGD1/point.
How SGD-denominated CFDs work
If you believe Crude Oil is going to rise, then you can purchase an SGD-denominated Crude Oil contract rather than the normal USD denomination. If Crude Oil then rises, regardless of exchange rate movements, you profit SGD$1 for every cent that the price of the relevant front month Crude Oil contract moves higher. When you realise a profit it will be in SGD, and therefore you avoid any currency conversions.
Trade the most popular markets
Trading SGD-denominated CFDs gives you access to our most popular overseas Spot and Forward markets, these include:
- FTSE 100 Cash
- Wall Street Cash
- US SPX500
- Germany 30 Cash
- Japan 225 Cash
- Hong Kong Cash HS42
- China H-Shares Cash
- US Tech 100
- Australia 200
- Gold
- Silver
- US Light Crude
SGD-denominated CFD Example
You buy 10 contracts of SGD-denominated FTSE 100 Cash at 3720. When you sell your 10 contracts at 3772 the profit on the trade is 10 x SGD1 x (3772 - 3720) = SGD$520. Unlike traditional CFD contracts, there are no GBP currency conversions.
These markets are offered in addition to our Standard and Mini contracts. You can access them easily from the Navigation pane or Search Function on PureDeal, our award-winning platform. For more information about SGD-denominated CFDs see the Contract Details section of our website.
