Does CFD Trading Suitable For You – Here’s the Checklist

CFD trading has become one of the most popular trading domains and a very sought after way to invest in other financial commodities. With CFDs allowing traders to employ leverage on financial assets that otherwise can't be leveraged, we can observe a huge shift from the latter's markets to the formers. While lucrative in multiple ways, CFD trading is by no means an easy ordeal. The markets can get nightmarishly risky in minutes and leave you to lose all your trading capital!
 

What makes CFD trading so appealing is that it allows traders to trade without buying the underlying asset. You need just pay for a contract and speculate on an asset's rise or fall in value! In addition to this, markets like the stock exchanges don't allow traders to leverage, but with a CFD you can hold high-value trade positions on any commodity!
 

What is a CFD?

CFD Trading Checklist

CFD means contract for a difference and is a derivative that can be traded on a number of financial instruments like currencies, stocks or indices. You have to buy a contract at a given price and speculate on the asset's value hike, if it goes up when you're selling it, you will make a profit. It is essentially an agreement between two parties to trade the difference in the asset value. The key point here being that the asset itself isn't being traded; only its value is being speculated on.
 

How Does CFD Trading Work?

CFD trading works no different than a normal trade. Take stocks for example, if the value goes up, you will see profits, and if it goes down, losses. So what makes CFD trading so special? As a CFD trader, you need not own the asset. In the stock exchange market, for example, you will have to purchase the stocks. This won't be necessary while CFD trading! Additionally, CFD allows you to leverage your trades to increase the profit potential. 
 

What Makes CFD Trading Unique?

1.    You only pay the spread amount, nothing extra.
 

2.    There's an extensive array of financial commodities like indices and currencies to choose from.
 

3.    One trading platform allows you to access all the other markets you want.
 

4.    CFD trading allows traders to trade both ways. This means that you can profit from falling markets just as you can from ones that are rising.
 

Grab your trading platform today and get started! With WesternFX by your side, you can start CFD trading right away. Our seasoned veterans will provide you with all the tools you need to excel at your exchanges and make big profits swiftly. Reach out to us now to know more!

Top 7 Common Tips for Forex Trading & CFD Trading Beginners

Thriving in the Forex and CFD trading markets is a challenging deal not many can pull off. While there are thousands of currency and CFD traders, there are only a few successful ones. Is this because the markets are volatile and erratic? Yes, partly. Most of the downfalls faced by traders are a result of poor strategizing and inefficient trading. Success in the trading world goes beyond simply making money; perfecting aspects like capital management and loss mitigation are no less than monetary success.
 

To get perfect at Forex trading is close to impossible since the domain is ever-evolving. What you can do as a trader however, is stay up-to-date with market developments and keep improving on your approach to see consistent, profitable results. 

Here are 7 tips from professionals that you can follow in your CFD and Forex trading venture:
 

CFD Trading and Forex Trading Tips for Beginners

1) Leveraging: CFD trading in the Philippines and Forex both have the beautiful facility of leverage. Put simply, leverage is money borrowed, that will allow you to hold high-value positions in the market, much more than your initial capital would allow for. The thing about leverage is that it is a very fancy temptation, but should you cross certain lines, the losses incurred will get far heavier than you can bear. Leverage works both ways - you win, you win big and should you lose, you lose just as big, if not bigger.

The most professional piece of advice you can get, be it while CFD trading or Forex trading in Philippines, is that never over-leverage. Stick to minimal ratios.
 

2) Employing Stop Orders: At times you may go overboard by mistake, how do you stop a trade that can't be stopped? By employing stop-losses. Much like the name suggests, they stop losses. The trick is to place sharp stops. Traders, mostly out of fear, place early stops which keeps their trades from realizing the tiniest of profits! Similarly, a stop kept too far beyond will be no different than having no stop at all. With ample market research and trend analysis done, you can find out the perfect spot to place your stop-loss. 

This won't just help with stopping losses, but also with increasing the prospects of profit while CFD trading in Philippines. 
 

3) Strategizing An Approach: Strategizing is no less than an art. Traders spend weeks and months learning the subtle nuances of Forex trading in Philippines so they can devise an approach that is completely prone to failure. While it isn't possible to have a 100% winning strategy, you can definitely devise plans that minimize losses and maximize profits. With the assistance of a good mentor, or a broker, you can set a strong plan in motion and realize stellar results. 
 

4) Controlling Emotions: The key to succeeding at CFD trading in Philippines is a basic step, but immensely difficult to implement - controlling your emotions. It sounds doable, but the lack of control is what sets several traders on a path that's too awry. Many traders, novice and professional, tend to lose control over their emotions and give in to the emotions of greed and fear, which make a deadly duo. Unlike the more technical aspects of CFD and Forex trading, emotional control can't be perfected through theoretical knowledge. 

You have to keep stops in your head and know where to draw the line. The prospect of making thousands in profits is tempting, but you have to understand that somewhere down the line one bad trade can ruin all your winnings.
 

5) Managing Capital: Another element inside the walls of Forex trading is capital management, one that can either take you to the high peaks of success or keep you eternally pinned down in the land of breakevens and losses. With wise management of your money, you can see it multiply and take you to higher levels of success!
 

6) Reviewing Trades Thoroughly: Trades always ought to be reviewed, either before making them or after. Professionals suggest keeping a trading diary while CFD trading in Philippines to keep a neat record of your trading moves so you can review and revise later.
 

7) Diversifying Your Approach: Never stick to one approach for long durations. The markets are huge, and you should try out a variety of strategies, currencies and trading approaches in general. Diversifying will allow you to experience Forex better and even make good profits!
 

CFD trading in Philippines will be a taxing domain for beginners and professionals alike. With a dedicated expert to guide you, it will incredibly easy to learn as you earn! Partner up with WesternFX and avail our world-class brokerage today! We come housed with an arsenal of seasoned trading veterans, who will provide you with the A-Z you need to succeed in today's competitive trading markets. Try a demo today and see for yourself, call us now! 

3 Crucial Things You Should Know About CFD Trading

Contracts trading aren’t as intimidating a field as many picture it to be, but at the same time, it is no cakewalk either. CFD trading is one of the most lucrative markets today and allows traders worldwide to take part and trade from a vast array of commodities like currencies, indices, stocks etc. If you are new to the field of contracts trading, you are bound to be fascinated! And now that you're fascinated, there's nothing stopping you from taking it up and seeing rapid trading success.
 

As a beginner in CFDs, you will definitely find yourself boggled by the sheer number of elements this domain consists of. Starting off will be confusing and challenging, but once you are halfway down the mile and look back, you will be surprised at your achievements! 

Here are 3 things to know about CFD trading before getting started: 

Crucial Things You Need to Know in CFD Trading

1) Profiting in CFD Trading: Like you would do in any other market, profiting is all about making timely moves and making it meticulously. The Online trading in Philippines like CFD trading will allow you to trade a number of financial assets and profit from losing trades just as from the winning ones. This double-ended nature of contracts exchange makes it a huge boon for traders. From your end, you only have to study trades sharply and make sure you know when to make the trade. After that, be it a rising or a falling trend, both ways can be profitable so long as your approach is sharp!
 

2) Finding Lucrative Trades: A good trade might show to the plain eye, but a great one is usually hidden. This is why technical and fundamental analysis is two extremely important elements of CFD trading in Philippines. If you want to net in the profitable trades, you will have to analyze the charts and hunt for them. With technical and fundamental analysis fuelling your search, you will be able to zero in on the big trends swiftly and make a move on them.
 

3) Potential Market Risks: No matter how hard you try, losses can't be avoided. Losing trades is natural in CFD trading, and something you shouldn't be embarrassed about. You can however minimize the losses by taking educated risks and keeping them minimal.    
 

To get started with CFD trading in Philippines, some such basics will get you up to speed! And as far as winning these trades goes, our experts at WesternFX have you covered. Assisted by our professionals, you will be able to master the art of contracts exchange swiftly and start seeing real-time results in no time. Aching to begin? Call us today and we can get started right away on our stellar trading platform!

3 Tips to Confirm Whether Your CFD Trading is Profitable or Not

Though typical beliefs hint that CFD trading is difficult to profit from, the reality is the opposite. Trading in itself is an immensely profitable venture. From contracts to options to Forex, each domain has its own risks and each promises healthy returns when done right! When it comes to contracts exchange, traders lose due to simple mistakes like overtrading and mishandling leverage. CFD traders work on a risky, leveraged environment where $100 can reel in $10,000, or cause you to lose the same. To win trading, apart from research and practice, there are certain steps everyone ought to follow!
 

Here are 3 tips to follow to win at contracts exchange:
 

 

Tips to Check Profitability Status of CFD Trading

1) Sustenance Before Profits: Every trader wants to make profits; however, it is the cost which you have to monitor. To win at trading, you don't have to make $100,000 of profits; instead, saving $100,000 of capital from loss is what matters! Profits make traders want to invest even more, in an aim to yield the same amounts again - which usually doesn't happen. Instead, it results in losses that wipe out all your earnings! When your goal changes from making money, to saving money, you will see a significant change in your career.
 

2) Leverage With Care: CFD trading is an attractive domain mainly because of the leverage. Contract exchange allows you to start trades without owning huge amounts of capital. By borrowing leverage from your broker, you can participate in high-value trades easily. The turning point here is that the same leverage that pulls you higher can push you even further down. When you win a leveraged trade, you will back all of your invested money, plus the leveraged money and any additional profits. However, when you lose the same trade, all the capital, own and borrowed, is wiped. Leverage wisely to thrive in trading.
 

3) Use Stop-loss: The volatile nature of trading markets brews a need for safety measures. Stop orders are some of the easiest and effective means to stay alive in this field. When you start investing bigger sums and scaling riskier charts, you will need to have your back covered. It becomes arduous for a trader to monitor his trade and speculate a drop in order to avoid it. To save this hassle, stop orders are placed. They automatically pull you out of trades when you define a preset threshold of money or position!
 

Profits are available in abundance, all for the taking of the skilled trader. Only the creamy layer survives the stifle competition today! Trading has become more crowded than ever, and the competition is very stiff. To survive it and emerge on top, you will need a world-class broker. Call WesternFX! We will equip you with impeccable trading platforms and guide you to victory!

Stock trading Vs. CFD trading: What shows greater promise in 2017?

Considered Asia’s leading emerging market, Philippines has recorded staggering growth in recent times and a remarkable increase in trading activity.  From stocks, bonds, currencies to indices, the spurt of growth is evident across all financial markets. With investments being made easier through the introduction of online trading; stock trading and CFD trading have witnessed substantial growth and have reached a peak in 2017. Those looking to take their first step into trading, are caught in a dilemma when it comes to choosing between the two.

So, what’s the better option and why? Let’s find out the answer to that very question by highlighting the advantages and disadvantages of trading in stocks and CFDs:

CFD TRADING OVER STOCK TRADING:

THE GOOD:

Commissions:

The brokerage commissions on CFD trading in Philippines tend to be very low, making it a popular choice amongst traders, who want to retain a good cut of their profits. While earlier, stock brokers charged higher brokerage, the increase in competition has prompted several brokers to lower it. In 2017, both online trading options gain the edge with low trading commissions.

Leverage:

If there’s one reason why you need to pick CFDs over the other, it has to be leverage. Instead of buying ten stocks for 1000 PHP, you can instead invest the same in five contracts, controlling 500 shares with the same sum. That’s leverage – and to those who use it wisely, it promises massive profits.

Diversity:

As opposed to the stock market, CFDs allow traders to choose from over 10,000 instruments to trade, from currencies to commodities to oil. Diversifying the portfolio enables traders to maintain a balance because a loss in one tends to get compensated by a profit in another.

Short trades

A stock trader can make a profit only if the price of the share goes up. However, CFD traders can make profits either way, i.e. they can go short and make money even if the price goes down, giving them greater control over their positions.

Trade duration:

Since traders might have to wait for long durations to wait for the price of the stock to rise and make a sell, the duration is quite lengthy. CFD trading, on the other hand, allows traders to profit from small fluctuations. In fact, in the Forex trading platform, scalpers open and close positions within minutes.

THE BAD:

• Trading too many instruments and making too many trades, may complicate things for a beginner in the field.
• Leverage can have an adverse outcome and amplify losses in CFD trading.
• A CFD investor in stocks has no rights as a share holder since there is no ownership of the asset involved.
• Holding positions in CFDs for extended periods invites overnight financing charges since the underlying asset is being ‘borrowed.' Buying shares directly is devoid of such charges.
• CFDs are over-the-counter, and you cannot transfer your position to a different broker or provider. You’ll have to deal with the same broker the position was opened with.

The verdict: Weighing the pros and cons of each, it’s safe to say, that neither wins nor loses in 2017. Each has its drawbacks and advantages over the other. If you want to trade shorter time frames, then CFDs are for you. However, if the leverage aspect worries you, you can still trade with zero leverage. WesternFX is the leading Forex brokers in the Philippines that offers flexible leverage. You can start with zero leverage or even go as high as 1:500. If you’re still confused, talk to the experts at WesternFX before opening an account with them.