CFD Trading Benefits: Global Range of Markets, High Leverage and More

SINGAPORE, March 16, 2012 /PRNewswire/ --

CFD trading with City Index Asia allows traders to benefit from a broad range of CFD trading features offering them an easy-access alternative to conventional trading.

Leverage plays a central role in the profitability of a CFD trading account, allowing you to benefit from the same level of market exposure as conventional trading by depositing only a small fraction of the total value of your trade.

Below, we provide an overview of how to trade CFDs and in addition, how the leverage feature works.

Trading CFDs

With CFD trading, you can trade on the price movements of a wide range of markets without having to buy the underlying instrument directly.

Through City Index Asia, you can trade on:

• Currencies
• Global indices
• Share CFDs

Trading with CFDs allows you to trade on prices of the underlying instruments that both rise and fall, offering you a flexible alternative to conventional trading. 

It's easy to start trading CFDs on the instrument of your choice; you simply need to find a CFD provider, such as City Index Asia which offers prices on over 9,000 instruments - some of which are mentioned above.

The price of a CFD reflects the price of the underlying asset and you can use CFDs to trade on the price movements of the underlying instrument and potentially profit from it. If you buy or go long on a CFD, your profits will rise in line with any increase in the price of the CFD. Alternatively, if you sell or go short on a CFD, your profits will rise in line with any fall in price.   Of course, if the market moves against your trade, you will encounter a loss.

Leverage Feature

Through City Index Asia, CFD traders can take advantage of this leverage feature across their CFD trading platform.

Below, you'll find a selection of the CFD margins offered through City Index Asia:

• FTSE 100 - 5% 
• Wall Street - 5% 
• US SP 500 - 5% 
• GBP/USD - 2% 
• Australia 200 - 5% 
• Japan 225 - 5% 
• China Mobile - 10% 
• City Developments - 10% 
• Singapore Airlines - 10% 
• Sony Corp - 10%

Summary

CFD trading with City Index Asia allows you to profit from markets falling as much as they rise whilst also taking advantage of leverage trading. However, trading on leverage carries high level of risk and may not be suitable for some investors. The possibility exists that you could lose more than your initial investment.

Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully.

About City Index:

Today more and more individual traders are discovering the benefits of derivatives, and many of them are discovering them through a City Index trading platform.

City Index is a leading global provider of margined foreign exchange, CFD trading and in the UK, spread betting. As a group, we transact in excess of 1.5 million trades every month for individuals in over 50 countries worldwide. To learn more visit: http://www.cityindex.com.sg/