In the financial market it’s hard to become successful if you don’t have the proper understanding, so, do you think that Singaporean traders have the understanding? Of course, they are successful due to their understanding of the market. When the trader enters and exits a trade it is known as Contract for Difference. It is an instrument which is used to trade the underlying asset. There is no actual ownership of the underlying asset but the profits and losses are realized when the asset price is moved. This contract will be between the broker and the client and as novice traders; you should focus more on it. With the improvement in trading CFD, the market has widened and there are numerous advantages as well. In this article, you will be able to learn more about CFD.
The strategy used by novice traders
Due to the simplicity, many novice traders use the RSI strategy. The market strength can be found by using the RSI strategy especially, it is used in order to find the bearish and bullish market. The positions of buy and sell will be based on the lines and the points on it. As the novice traders, it’s your duty to understand the RSI strategy by researching it more since it will help you to become a successful CFD trader.
The leverage benefit
There are differences between the CFD leverage and traditional leverage so it’s essential to learn it. The 2% margin requirement is the lowest percentage in the CFD market and it starts from this 2% .The margin requirement will vary depending on the asset such as assets, commodities, and etc. you will gain greater returns when the margin requirement is lower. You should keep in mind that increased leverage is a risk which you should bear.
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