CFD Education Series – Part 3

Top Traders get more opportunities with extended trading hours

SGX _article_3

What events do retail clients typically trade CFDs around?

    •   Macroeconomic events
    •   Economic announcements; inflation,
        GDP, labour market
    •   Company earnings / Reporting Season
    •   IPOs
    •   Dividend payments

Trading around US reporting season with CFDs is appealing to retail clients as the markets can swing +/- 5% on any given day.

At IG, you can even trade for extended hours on 30 key US stocks. The US stock market opens from 10:30pm to 5am Singapore time, which means many companies only allow you to trade up until 5am. We know that many clients need to trade outside these hours to make the most of company announcements. That's why we've made sure our clients can access dozens of key US stocks at the most important times - up until 9am (Mon-Fri), and 6am (Sat).

Find out more here

With the current market trends, in which classes (shares, forex, sectors, commodities etc.) should a retail investor be looking at trading, using CFDs?

There are always opportunities especially with volatility returning to the market thanks to central bank actions and corporate news. Globally, IPOs are coming back into the spotlight, most recently with the high profile Alibaba listing. Global indices like the Germany stock index (DAX), and the S&P 500 have also made record highs in light of quantitative easing policies.

One of the advantages of trading CFDs is the numerous markets that traders can choose from.  A good starting point for investors is to look first at what they are most interested in or familiar with. For example traders who want to take advantage of the recent oil plunge can trade on Brent Crude or US light crude. Those that are unsure on market direction but keen to capitalize on market movements can also trade the Volatility Index (VIX). Traders that want exposure to emerging markets can also look at the China A50 index and India’s Nifty.

Regardless of asset class, trading CFDs involve leverage. Retail investors should focus on learning risk management techniques as well as trading strategies to equip themselves with the right tools to be a profitable trader.

 

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