Higher volatility, liquidity draw younger investors into CFDs

Singapore

TRADING in contracts for difference (CFDs) is on the rise in Singapore, with increased interest from a new crop of younger investors. Higher market volatility, greater liquidity and wider availability of information are also drivers of the trend, said market players.

CFDs allow investors to speculate on future market movements of an underlying asset without having to own the asset. CFDs are available for a wide range of financial instruments including shares, currencies, indices and commodities.