The Meaning of CFD Trading in Singapore

CFD stands for Contracts For Differences.

"It is an agreement between 2 parties to settle the difference between the opening and closing prices of the contract multiplied by the number of units of the underlying asset specified in the CFD. 

CFDs allow customers to participate in the price movement of an underlying product without actually owning the asset, which can be a share, an index, a commodity, etc. 

Phillip Securities offers the following types of CFDs: 

1. Equities CFD (which includes Shares CFD
and Shares Direct Market Access DMA CFD)
2. ETF CFD
3. World Indices CFD
4. Commodities CFD and
5. FX CFD

I am studying CFD trading now because I want to trade in the US stocks.

Compared with Singapore stocks, US stocks have bigger movements.

Big movements could be up or down, which means it will be very risky.

In the meantime, the markets in Singapore is again up a little bit this morning.

It has been going up and down by point something percent in the last few days.

That means it's moving sideways.

That means I have nothing to sell.

That also means I am not buying because I can't see the trend.

Rest and learn for today.

Will be back tomorrow with another CFD notes.



Adrian's Journal
The rookie trader's notes










Comments

Post a Comment

Popular posts from this blog

Exploring the Current Trends in the S&P500: Microsoft and Tesla Stand Out

I browsed through Finviz today and noticed that there are only two pages of S&P500 stocks with buy signals. This caught my attention because it means that most of the stocks in the index are performing well. However, I noticed that there are a couple of exceptions to this trend. First, there's Microsoft (MSFT). The stock is currently trading at $226 per share. It's definitely one to keep an eye on. [DONE] Then there's Tesla (TSLA). This stock is trading at $117 per share. It's definitely worth considering as a potential investment. Overall, it seems like the market is doing well, with only a few exceptions. As a rookie investor, it's always important to keep track of the trends and do your own research before making any decisions.  ~ The Rookie Trader Rookie Stock Trading Strategy - Jan 2023  
Read more

Rookie Swing Trader Journal August 19, 2021

  How's ETH today? ETH-USD $2998 (binance.sg) When to sell... $3165... Missed when to buy? How's my purchasing power today? I can buy 1 stock using  Moomoo .  Is it a good day to buy stocks? Look at the  S&P 500 hourly chart ...  Is the 10 SMA above the 30 EMA? No Is Williams %R (3) less than -80 (oversold)? Yes Is the ADX momentum indicator above 25? Yes If everything is Yes, buy! It's not a good day to buy. ⚠️ Once you bought a stock, trade the chart of the stock itself and forget about the market...  https://www.swing-trade-stocks.com/market-timing.html What stocks to buy from Yahoo Finance Watch List, Yahoo Finance News, Trending, Market Movers, and related stocks, Moomoo watch list and Heat List?    Skipped Which stock in hand can I sell? 12 stuck stocks at FSMone. See Yahoo Finance. AAL (mm kdj rsi). Bought $21.30. Stop at $19.60. Target $24.  GNUS (yf bbl to). Bought (FSMone) $1.65. Target $1.82.  TNXP (no indicators, gap down). Bought $0.75. Target $0.83.  LYFT
Read more

Best Trend Reversal Indicator For Stock Trading

Image
MACD  indicator... The histogram and the line crossing the zero level is a  good reversal  signal. Note that the zero level must be crossed by the two lines. If the histogram crosses the zero level but the line doesn't, you don't open a trade. Source:  https://pipbear.com/indicator/trend-reversal/#:~:text=MACD%20indicator,-While%20MACD%20can&text=The%20green%20histogram%20and%20the,don't%20open%20a%20trade . That means right now there maybe a downtrend confirming soon. Singapore stocks opened generally higher today. I have nothing to buy and nothing to sell. Let's take a break. Adrian's Journal The rookie trader
Read more