What CSD Believes In
Asia’s financial market has experienced rapid growth, second to the United States. However, the entire financial market is facing issues such as regulatory lapse, high volatility, immature investors and imperfect financial services. With the continuous development of financial technologies, emerging companies are utilizing cutting-edge technologies to address issues faced by traditional financial institutions and seizing the limitless market opportunities at the same time.
Asia has also witnessed an unprecedented growth in the affluent sector. Asia’s wealth management market is valued at 20 trillion USD, likewise, second to the United States. However, the market still lacks capital investment channels that offer low investment cost, high return efficacy, customizable investment products and personalized financial services for investors. Blockchain technology and token economics based cryptocurrencies will be able to address these issues, thus creating the market demand for these financial technology-based solutions.
CSD believes that the application of financial technology in the wealth management sector can be improved with blockchain technology and widely adopted in other fields such as payment systems, and in turn, enhance and expand investment channels for financial assets.
Basic Introduction of CFD
A contract for difference (CFD) is a popular form of highly leveraged derivative product. CFD trading enables you to speculate on price movement of global financial markets (or instruments) such as shares, indices, futures, etc. When you trade CFD, you are speculating on the price movement of your chosen asset rather than actually owning the underlying instrument. In 2002, CFD has become a mainstream trading instrument available on over 20 major exchanges with thousands of investments companies offering over 2500 types of financial instruments.
CFD is traded on margin and the margin rates vary between 3% of the CFD shares to 1% of the CFD index prices. Although similar to the trading of shares, whereby returns and losses are based on the buying and selling prices, CFD trading offers a higher leverage.
For example, a CFD provider offers the margin of the CFD at 5%, this means that you can place a $10,000 trade with $500. There will be interest losses during open positions and you can either deduct the losses from the frozen capital or add the losses to unfrozen capital in your account. The interest will be deducted from unfrozen capital in the event that there are insufficient funds from the frozen capital.
When you trade CFD, you are speculating the price movement of your chosen asset rather than actually owning the underlying instrument. As such, there are no stamp duties or transfer fees involved when you place a CFD trade on shares and/or futures.
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The ability to short-sell
Investors can now sell first when the price is high and buy it back when the price drops. The ability to trade in both rising and falling markets adds flexibility to investor’s CFD trading strategy and allows forecasting of price movements that coincide with the underlying fundamentals, which can fluctuate in both positive and negative directions.
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One of the key advantages of CFD trading is that you can trade using margin, which gives you leverage. You can trade without having to place the full value of a position and can invest your remaining capital in other financial instruments.
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