When you trade CFDs, you essentially trade the price difference between two assets. For example, if you think that the price of gold will go up, you could buy a CFD on gold. If the price of gold increases, your profits will be greater than if you had bought the physical asset itself. Conversely, if you think that the price of gold will go down, you could sell a CFD on gold.
CFDs are a great way to trade assets like stocks, commodities, and currencies without owning the underlying asset. This can be especially helpful if you don’t have the capital to buy these assets outright. Additionally, trading in Singapore allows you to trade on margin, which means you can leverage your position and increase your profits.
However, it is important to remember that trading CFDs involves significant risk. You can quickly lose all of your investment if the market moves against you. Therefore, it is important to do your research before opening a position and stop losses to protect your investment.
If you’re ready to start trading CFDs, we recommend using a broker like eToro. They offer a wide range of assets and allow you to trade on margin, which means that you can make significant profits with relatively small investments.