Others   

CFD or Contract for Difference

Hi rogue trader,

Thanks for your advise and note, really helps to see if want to open a CFD account or other alternatives.

Good forum to share with other interested parties.

Good luck to all!

 

then in addition, you must also take note of any rights issues, dividends and so on as this corporate actions will have impacts on the positions in cfd.. very difficult to explain the impacts in details, bt jsut take note ba.. then the margin calls oso must be very familiar as the market might goes against ur positions, so will tio margin calls..

 

greenhorn, take note that cfd got only "30 days trading" as once over the 30 days period, brokerage will be incurred again.. then 30 days got include weekends n public holidays so you will be paying interest on non trading days.. and if u trade less than $20k contract value, higher brokerage compared to trade that are more than $20k contract value (i dunno is this dependent on your remisiers or nt)..

 

Hi all,

I am a layman to CFD account which was introduce by a frend working in Phillips, he told be it is a leverage tool by 5 times so that you can trade more with lower capital.

I tried out stocks by trading through CPF accounts and had been good then so wanted to try trading using cash about 3K. Some questions:

Base on 3K, I can try up to 15K of stocks and is there any tied up for CFD if I hold the stocks longer and sell as and when I think is right?

Beside all the interest rate for this account at 5.6%p.a and the commisions; is thee other things I need to take note. Thanks alot

 

Hi,

Heard from my agent that CityIndex Asia stock CFD trading margin is going to be lowered to 10% crossed the board. Quite a good bargain together with the 5% discounted commission rate from my agent. Check out this website: http://www.noahfinancial.com/Getting%20started.htm

 

 

 

Hi all,

DBS is now $23.40 last check, up by about $2 from the price I exit my short position. So be careful when you 'drive through the valley'! The end of the day, SGX is a fundamental play market.

Good luck with equity derivative and stock investment.

 

 

Thank you HeokBs.  Appreciated.

 

There is no fee for maintaining a CFD trading account. But to open a minitrader account, you need to deposit $3000 as margin deposit. Sori, they don't pay interest for the margin deposit. SaxoTrader account need $10k

You pay interest on your long position only; short position you receive interest. Saxo CFD account charge the lowest interest in town: SIBOR + 1%, roughly 3.5%. Phillip = 5.6%; Lim & Tan = 6.6%. But not sure whether they are giving discount during this period. CityIndex also around SIBOR + 3% or something like that. So shop around before signing.

Would like to share but unfortuately, training firms hire me as finance & investment trainer and collect fee from participants, so cannot do it. Otherwise break rice bowl...haha. Appreciate your interest to know finance. Can chit chat here about value investing and other finance & investment topic.

 

 

Hi,

Anyone know whether there is any fee for opening an account ?  Is there any monthly fee payable (other than the interest charges for the long and short trades done) ?  Can I just open an account just to standby ?  Thank you :)

 

HeokBS

Great!!, since you are a finance & investment lecturer, would you consider conducting a sharing session with the rest ?.

 

From my point of view, DBS is on a speculative uptrend. The pocket of correction on the chart shows possible weakness in short-term trade. If the money market is going to have lots of liquidity and SGD interest rate low, DBS got strong long-term profit potential. As I mentioned before, I just trying to catch the 'wind in the valley' - it comes once in a while.

I am not a day trader; i am finance & investment lecturer.

 

 

hi heokbs, r u a day trader?

 

DBS volume has picked up today. And currently, it is in the oversold RSI, Stochastic, Wm%.

Is it time to buy?. Any comments

 

 

Not really. Just understand that while DBS is on the uptrend, there is always the 'drive through the valley' condition - catching the intermediate downturn.

To share with you how I guess:

1. I read an stock analyst said that DBS is undervalued at this level out of the blue. Next day the market was driven up. So I guess it is out of speculative trade. Fundamental didn't change over night.

2. Remember i read in a book that say if the peak of the current chart is lower than the peak point of the previous chart, it is a sign of weakness. See DBS chart. The current peak at 10 April is lower than the last one at 16 Feb. So may be a sign of correct before aligning back to fundamental value.

I may be wrong. That why I am not staying to prove my point.

 

 

Hi HeokBS,

 

Congrats !   You must be very familiar with this counter and possess very good skills in both long and short.  Care to share your trading techniques/skills :)

 

Regards

 

 

 

 

Buy back (long position) my 10 lots DBS at $21.30 for my CFD account. Make $3000 in a week. Better be safe than greedy.

 

Was queuing to short another 10 lots DBS at $21.70 this morning. Now down to $21.60. Miss out $1000 today. 10 cents to breakeven (Sell+Buy trade fee).

 

 

 

Today make $2,000 from my Saxo CFD short position on DBS Bank. Closing price = $21.40

Interest earned on short position = $8.88 (for 1 day)

Commission paid = $410.40 at 0.19% after NFG Capital 5% discount.

 

This morning decide to short sell 10 lots DBS at $21.60 with my Saxo CFD free interactive financial trading account. Based on chart trend like going up quite a lot this year. Better go through the realtime online tutorial first before really plunging in with real money. :O)