Stock trading with CFD concept.
We have often heard the saying, "Don't put your eggs in
one basket". Yep, this recommendation aims to minimize the risk to the
assets we have, with the hope that we don't place our assets in only one
investment instrument.
Currently, there are many investment instruments in
Indonesia, from the capital market itself there are stocks, mutual funds,
bonds, and so on. Everything is there to meet the investment needs of
residents. It would be a wise move if we allocate our assets to each
instrument. If you still have residual assets from the investment, you may have
to try to allocate it to a Contract For Difference (CFD).
CFDs are derivative products that allow you to participate
in the price movement of an underlying stock/index, without owning an industry
stock. CFD provides an opportunity for profit when the market is bearish or
bullish, because it allows you to sell short or buy long.
CFDs are traded on OTC and the price obtained is derived
from the price of the underlying stock.
There are 2 (2) types of CFD, namely Shares CFD, where when
a customer places an order, the order will enter the hedging desk or in this
case Phillip Securities Singapore, and can be reflected on the exchange, but
may also not be reflected. To share CFDs, the price will be based on the bid
and ask prices. The second is DMA CFD or Direct Market Access CFD, where when a
customer places an order, the order will be sent to the Exchange and will be
done based on the last done price.
So maybe that's all for a simple article this time, thank
you for reading, see you in the next discussion
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