Both CFDs and futures trading are popular investment options among retail traders in Singapore. However, while they may appear to be quite similar in their description of the nature of trade being ‘off the exchange,’ there is one key difference between these two types of financial instruments that would influence your choice on which to use. When it comes to trading derivatives in Singapore, investors are spoilt for choice.

Futures and options, both modern investment instruments worldwide, are available here. However, if you’re new to the world of investing or trading financial securities like futures, you might be confused by the difference between these two derivatives types.

This article explains a contract for difference (CFD) and discusses its risks. It also looks at future contracts and how they differ from a CFD. The article then compares the two financial instruments before concluding with some concluding remarks on which instrument is better suited for an investor given his risk profile.

What is a contract for difference?

A contract difference is a type of derivative product based on the difference between an underlying asset price and its strike price at the point of expiry. For example, if you were to buy a CFD on Apple Inc. (AAPL) with a strike price of $100 per share and AAPL stocks subsequently traded above $110 at expiry, you would be paid the difference of $10 x 100 = $1000 by your broker even though you never actually took ownership of the stock.

If, however, AAPL shares traded below $90 by expiration, then there would be no payout to you as the contract has no value since the share traded is lower than its strike price.

As mentioned earlier, CFDs are derivatives, so there is always counterparty risk involved in trading them.

What is a futures contract?

The main difference between a CFD and a future contract is that the former does not have an expiry date while the latter has. It means there is no counterparty involved in trading futures contracts, unlike in a CFD where your broker is your counterparty.

As such, futures traders are only exposed to minimal risks. This transaction usually takes place on an exchange platform that acts as the intermediary for both parties, assuring performance and payment. It does result in much-reduced counterparty risk. One example of such exchanges would be Singapore Exchange (SGX).

What is the difference between a CFD and a future?

The main difference between a contract for difference and a future contract is that the former does not have an expiry date while the latter has. It means there is no counterparty involved in trading futures contracts, unlike in a CFD where your broker is your counterparty. As such, futures traders are only exposed to minimal risks. This transaction usually takes place on an exchange platform that acts as the intermediary for both parties, assuring performance and payment. It results in much-reduced counterparty risk. One example of such exchanges would be Singapore Exchange (SGX).

In Conclusion

We hope this article has helped you better understand the main differences between futures and CFD trading. If you are looking to trade either of these products, we recommend partnering with a reputable broker who can help guide your decisions as well as provide access to research tools that will make investing in either product more profitable for you.

Be sure not to invest without understanding all the risks associated with both these types of trades before committing any money or taking on debt from margin lending services offered by brokers. With proper education and guidance, there is no reason why anyone should be apprehensive about entering into one form of derivatives trading or another.

If you are interested in investing in CFDs or futures, check out Saxo Bank CFD.

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“I loved Internet businesses, having built and sold one. And I loved the financial business, despite the fact that it was almost all a scam.” – James Altucher

One of the most critical elements of transacting in any form online is the need to pay attention to Internet security. his point is illustrated by the latest news releases such as Facebook’s most recent security breach that was discovered on 25 September 2018. In this incident, about 50 million user accounts had their personal data compromised in one form or the other.

Additionally, Google announced that they are shutting down Google Plus because of a security bug that was discovered in the second quarter of 2018. As an aside, the company did not announce the issue when they discovered it as they were concerned about “regulatory scrutiny and reputational damage.”

However, be that as it may, the salient point here is that Internet security breaches occur across all sectors of the online world, including the online trading industry. Consequently, the hype around, and emphasis on, ensuring that you are in a position to protect your personal information, especially social security numbers, identity numbers and banking details cannot be underestimated or ignored.

Answering the question: Should you be concerned about online trading scams?

Personal Internet security across all Internet channels is equally important and should never be underestimated. However, this article’s emphasis is on the online financial trading industry. Thus, further discussions will be limited to this sector even though the basic principles are relevant across all aspects of global Internet usage.

The simple answer to the question of whether you should be concerned about fraudulent online trading brokers is: Yes. For all the reasons as set out in www.jonesmutualscam.com, not only should you be aware that dishonest online brokers are waiting to divest you of your finances, you should also actively investigate all online brokers for their legitimacy before you open a trading account with them.

Ways to find online trading scams

Consequently, the most crucial question that must be asked and answered is how to determine whether an online trading website is owned (and operated) by a fraudulent or legitimate company.

Here is a summary of the most pertinent points to determine whether an online trading company is genuine or fraudulent:

Risk warning (or the lack thereof)

Does the broker’s website prominently display the following risk warning (or a variant thereof)?

“Online CFD Trading has the potential to yield high profits, but it also involves significant risks. For this reason, consumers are advised not to trade funds that they cannot afford to lose. The trading outcome is dependent upon an unpredictable market. It is possible to lose one’s initial investment, and we… recommend that traders devise a money management system… to protect their investments.”

The rationale behind the need for genuine brokers to prominently display this information is that, apart from the fact that it is a legal requirement, it is a reliable indicator that the broker is vested in its traders’ success rather than accruing large sums of money for itself.

On the other hand, a scam broker wants to relieve you of your money by convincing you that trading on its online trading platform is virtually risk-free. Furthermore, the scam broker would like to you believe that it is safe to invest large sums of money at any given moment. However, sight should not be lost of the fact that the opposite is true. And you should only invest money that you can afford to lose.

Thus, it is crucial to stay away from all online financial market brokers that insist that CFD trading is either low-risk or risk-free.

Website UX and UI

An online broker’s website’s usability (UX) and user-interface (UI) are essential parts of a trader’s success and profitability. And a bona fide broker will invest in an easy-to-use, simple to understand website and online trading platform.

Conversely, if the online trading platform, as well as the rest of the site’s navigation, is not intuitive and simple to understand, then it is not worth opening an account with this broker. Moreover, a sloppy, difficult to use website can also be a clear indication of a fraudulent broker.

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Facing a legal case is a nightmare for ordinary people these days. The main reason that people try to avoid legal proceedings is the higher fees of attorneys and advocates that they have to pay for them. But a thing that provides some sigh of relief for clients is the competition between these clients to attract more people towards them. For this purpose, attorneys provide several specific and unique services.

One such tactic use by few of these attorneys is providing free legal consultation to their clients. This free consultancy on initial level is really precious in the scenario that high fee is charged on most of occasions. An ordinary person needs several clarifications before even hiring an attorney. Such free legal consultancy can be helpful in these circumstances.

But such type of free legal consultancy is not provided by all attorneys. There are several reasons for which few attorneys would like to provide free consultation to their clients. Few of these include:

• The most important reason is competition in the market. Attorneys will compete against their counterparts for which they try to lure clients towards themselves. For this purpose, several incentives are provided that may also include free consultation services. It assists them in finding new clients and turned them into their permanent customers.

• Different attorneys have different type of specialties and experiences and they like to evaluate cases that are fit for them. Through free consultation, they can easily figure out the nature of your case and its suitability for them.

• On rare occasions, it is a possibility for attorney that they are going to tackle a case of a person who has some legal issue with their previous client. In this situation, attorneys prefer to leave that case as they consider it unethical.

How to find free legal consultation?

There are several ways through which you can find and locate attorneys that provide free consultation either on general cases or specific cases related to you.

• Nowadays, most of attorneys use modern technology for progress of their business and provide important information to their potential clients. They also provide information if they are offering initial free legal consultation on their website. The easiest way to find them is by using any famous search engine through related query like free legal consultancy in New York, free PRO services in Dubai, free initial consultation etc.

• Many law firms still use and prefer advertisement on print media and electronic media for providing information about their services. You may also find the offer of free legal consultancy through these ads on newspapers and TV programs.

• Don’t limit yourself for latest techniques while finding free legal consultancy. Many lawyers still use old methods for their advertisement. Phone book is an example where you can find law firms advertising their services that may also include free initial legal consultancy for clients.

After finding these attorneys that provide free legal consultancy in your area or city, you can take further information by contacting them via email or telephone. Just make a list of all the necessary questions related to your case. This will allow you to get details about your potential lawyers and choose the best one suited for you.

Author Bio: Mona is working as a content writer in a Dubai-based consultancy firm, Riz& Mona Consultancy. She has experience of more than 6 years. During her career, she has acquired lot of experience in writing for various business and legal subjects including trade, finance, legal consultation, taxation, and others.

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If you are like the majority of binary options traders, you look for advice that may help you make as a lot of a profit as you possibly can, but the way to obtain that advice may or may well not be good for you. It is because oftentimes, the advice you’re being given is benefiting someone else even more. The largest mistake created by the market Trader is thinking that of the advice distributed by the broker they will work with is intended to gain the trader.

Binary options experts

There are the binary signals providers out there who’ve been trading binary options effectively for a long time who not only continue steadily to make money on the marketplace, but who’ve also begun to instruct others how to do the same.

Another important word is the fact even experts who’ve been trading binary options efficiently for a long time are individuals and can still make errors. Plus, the Forex Signals providers are well furnished with a good knowledge of the market, however the market is always changing this means there’s no method for anybody to forecast with 100% correctness which direction the marketplace will turn.

Develop your own strategy

By staying enlightened on market tendencies and learning all you can from the Mt4 and Mt5 experts and third-party websites, you can get started to build up your own technique for trading binary options. Although at the start it can be more good for you to meticulously follow the path of various skillfully developed, as you learn and expand in your ability, it is important that you feel well informed in your trading skills and get started to trust your intuition more.

When producing your own strategy, understand that you want to build up a technique that is easy, easy-to-understand, and flexible to any situation. Even though many ECN brokers’ websites may construct complex strategies so that you can follow, the best strategies are easy and simple to use. Extremely complicating strategies can in fact lead to bad decisions since trading binary options is rather straightforward.

Additionally it is important to make certain that your strategy is versatile, to enable you to change it out as the marketplace changes and make alterations as had a need to perfect it for you. Understand that the marketplace can be volatile, so even the best strategy for the Cryptocurrency and forex will lose occasionally. Furthermore important is the fact you find the one that gives you to win regularly.

Conclusion

When learning binary options and racking your brains on the simplest way that you can make money, ensure that you don’t disperse yourself too slender. As it pertains to binary options, there are a variety of different investments that you may make depending on expiry times and what you are trading be it commodities, money pairs, property, or securities. Find something that works for you and stay with it. Different expiry times and binary options signals require different strategies, so it is best to opt for simply a few things and use those.

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What separates successful forex merchants from all of those other packs? Exactly why is it that only 5% really make it in forex trading? How have these traders undertaken it? While all successful forex stock traders have their proven forex trading strategies and systems to call and control their deals, they know that it is important to give attention to enhancing themselves.

Because the investor is the best source that can react to produce the required trading results, she or he must be sure this tool is primed and successful to execute its best at forex trading. Consequently, successful forex stock traders pay great focus on the points the following which elucidates how each goes about their forex quest.

Treat Forex Trading just like a business

Top forex merchants know that trading is a significant business plus they accord it such importance by considering key factors that influence all businesses. From the forex trading point of view, these factors include the writing a forex trading plan; getting started with a proper trading consideration size; knowing cost factor of trading; sustaining and growing the forex account; and acquiring the right forex trading knowledge, skills and equipment.

Keep your ego in balance

Trading faults can occur from emotional reactions directly associated with one’s ego. A forex investor that should be right will allow ego prevails and inflicts the wreck to his or her forex bill, always endeavoring to will the marketplace which he or she denies can’t be operated. Being egoistic does mean not acknowledging one’s trading blunders and for that reason not learning from them. For example, the ego will egg the forex investor on to keep a burning off a trade rather than taking the right action of reducing loss at the correct time.

Be disciplined

That that directly influences the forex trading bill important thing is trading self-control. The serious forex investor practices his/her trading intend to the notice and adheres to it around humanly possible (even successful stock traders make blunders). Trading self-discipline includes guarding trading capital and sensibly allocating risk per trade; only taking deals that gratify risk/reward variables and create correctly; remaining on the sidelines all the time rather than forcing a trade; slicing deficits quickly via pre-determined stop damage levels; allowing a good trade trip but protecting successful from turning out to be a loser. Essentially, being disciplined allows the successful forex investor to show income constantly and rein in a loss should any trading period grow to be a rough trip.

Protect Your trading capital

The most experienced forex investors treat their trading money very real, as it is what permits trading to be achieved. Additionally, it is the aim of forex trading to make the successful trades to develop a huge amount of money. Thus, the successful forex investor will shield his or her capital zealously, making certain risk per trade is manipulated so that losers only rot the forex bill, not chew up an opening in it. This guarantees the forex investor that his or her forex business can continue, today, tomorrow and in the upcoming days.

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