Why IG is the platform that makes all the difference

In these past years, the high degree of market volatility has seen a surge in demand for financial derivatives products – tradeable products or contracts that derive their value from the performance of underlying assets. Such products can help traders and investors navigate volatility with a more composed approach and sieve out pockets of opportunities across different asset classes such as equities, commodities, fixed income and currencies.

A derivatives product that is gaining traction with traders is Contract for Difference (CFD). CFDs allow traders to reap opportunities that arise during bouts of volatility. At the same time, traders are able to put a cap on the amount of losses they are prepared to swallow with the help of risk management tools.

CFDs allow one to trade different instruments without having to own the underlying asset. In a typical CFD trade, a client and a broker mutually agree to exchange the price difference between the current value of an underlying asset and its value at the end of the contract.

This means that whether the price of the asset rises or dips, you may be able to make a profit. In addition, because you are able to take short positions, CFDs can act as a hedge for your portfolio.

Another advantage of CFDs is that they require you to deposit only a fraction of the full value of the trade, known as a margin. This ties up less of your capital, freeing it up for other investments and uses. However, it is important to keep in mind that your profit or loss will still be calculated on the full size of your position.

A LEADER IN CFDS

IG has been at the forefront of the trading industry for more than 46 years. Through its platform, users have access to more than 17,000 assets, including shares, indices, forex and commodities. IG is regulated by the Monetary Authority of Singapore and has been supporting traders here in Singapore since 2005.

IG also offers a plethora of educational materials for traders of different financial literacy levels. It was recently recognised as the best broker in educational materials, based on a 2021 survey by Investment Trends. One of its popular resources is the IG Academy, where one can attend live webinars with trading experts and learn from various courses tailored to meet the needs of beginners and advanced users alike.

For more advanced traders, IG’s CFD platform boasts automated trading capabilities as well as cutting-edge technical analysis and charting tools to make algorithmic trading easier for all. IG is the only CFD provider to have technical analysis software ProRealTime integrated into its platform. This helps experienced traders to execute, automate and monitor their trades all in one platform.

Traders can also access news on the go by following IG’s market analysts through various channels such as Telegram. If you require more specialised assistance, you can tap on the platform’s round-the-clock technical help and support.

GETTING STARTED WITH CFD TRADING

To help traders better manage risk, IG offers a unique CFD product called Knock-Outs that comes with an in-built guaranteed stop, which is especially suited for those starting out in CFD trading.

By allowing you to determine the exact price you would like your trade to close – the Knock-Out level – right at the start, you can mitigate risk effectively. The Knock-Out price moves one-to-one with the underlying price of the asset and you only pay for the stop if it is triggered.

The Knock-Out level acts like a guarantee that closes out your trade even during times of huge market swings. This is especially crucial as trading on a margin means that your losses could exceed your initial deposits.

With a wide array of capabilities and resources on its platform, IG makes all the difference to traders seeking opportunities in a mercurial landscape.

Sign up for an IG account by June 30, 2022, fund S$5,000 and place one trade to get S$188. Terms and conditions apply.

IG provides an execution-only service. The information in this article is for informational and educational purposes only and does not constitute (and should not be construed as containing) any form of financial or investment advice or an investment recommendation or an offer of or solicitation to invest or transact in any financial instrument. Nor does the information take into account the investment objective, financial situation or particular need of any person. Where in doubt, you should seek advice from an independent financial adviser regarding the suitability of your investment, under a separate arrangement, as you deem fit.

No responsibility is accepted by IG for any loss or damage arising in any way (including due to negligence) from anyone acting or refraining from acting as a result of the information. All forms of investment carry risks. Trading in leveraged products such as CFDs carries risks and may not be suitable for everyone. Losses can exceed deposits.

This advertisement has not been reviewed by the Monetary Authority of Singapore.