How To Trade? | Learn CFD Trading

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Intro to CFDs Seminar

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A CFD (or Contract For Difference) is an agreement to exchange the difference in value of assets from the time a contract is opened and closed. The trader does not own the assets. Watch our short introduction to CFD trading, below.

Benefits of CFDs over traditional trading

Trading value magnified

To open a CFD position, traders put up only a small fraction of the contract value, known as a deposit or margin. This is 'leveraged' or 'geared' - meaning it is multiplied - as is the potential profit and loss. With margins as low as 2% with IG Markets, depending on the market, our clients trade up to fifty times the value of their deposit, amplifying the profit or loss from market movements.

Profit from rising or falling markets

Traditionally, a trader might profit by buying an asset then later selling it at a higher price; a simple 'buy low, sell high' approach. CFDs allow this, but they also let traders sell the value of assets before buying. This 'shorting' approach lets traders profit from falling markets, opening a wealth of trading opportunities.

Broad range of markets

These trading opportunities are very broad indeed, as CFDs can be traded on forex currency pairs, global stock indices, shares, options, ETFs and more. Commodities - such as gold or oil - can also be traded, as Leveraged Commodity Products (LCPs). With a single IG Markets account, our clients trade from as many or as few of our broad range of markets as they like.

Low cost trading

Charges for trading CFDs can be low, depending on the provider. With IG Markets, our pricing is both low and transparent; we have no hidden charges.

Start trading today

To start trading CFDs today with the world’s No.1 CFD provider* and Singapore's No.1 CFD provider for customer satisfaction^, open an account now.


* Largest retail CFD provider by revenue (excluding FX). Source: Published financial statements. As at November 2011.

^ Investment Trends 2010 & 2011 CFD & FX Reports show that IG Markets had the highest average overall client satisfaction among CFD providers in Singapore. Note: Only CFD providers with a sample size of 30 or more were included in this analysis.

With transparent trading costs, share CFDs available at the guaranteed market price, one of the lowest financing rates around, and segregated client funds, IG Markets is Singapore's number one CFD provider for customer satisfaction. IG Markets offers forex trading and CFDs on all the leading Asian and international shares in local denominations, as well as a range of stock indices, including the Singapore Blue Chip. Exclusive to IG Markets is our selection of SGD-Denominated CFDs, which eliminate currency exposure when trading foreign stock indices. We also offer a range of research and analysis resources to keep you up-to-date with the latest market news.

Remember that CFDs are a leveraged product and can result in losses that exceed your initial deposit. Trading CFDs may not be suitable for everyone, so please ensure that you fully understand the risks involved.

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