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understanding contract for difference (cFD)

Dates:  28 August 2018 (8.30am - 5.00pm) 
Venue: Securities Commission Malaysia
Accreditation: SIDC CPE-approved: 10 CPE points


Contract for Difference (CFD) is increasingly gaining popularity as traders are becoming more familiar with how they can be used as part of a trading portfolio. Traded Over-The-Counter (OTC) rather than on a stock exchange, CFDs provide an in-built leverage for traders looking to increase earnings, and provide a more flexible tool for investing. CFD have a range of functions and can provide any portfolio with the flexibility to hedge and leverage over trading the assets to which the contracts relate to.
 
However, CFDs are a complex and highly risky products. Making sure you understand how the CFD market operates, awareness of its downside exposure and associated risks is imperative before making decisions about trading CFDs.

  • Programme Delivery

    Programme Objective

    This programme will provide clarity into the nature of CFDs as an alternative investment product with essential  knowledge of CFD structures, its principal trading mechanics and typical CFD investment strategies. It cautions intermediaries and investors of the need to be fully aware of in CFD investment risks, margin calls, counterparty risks, possible technical issues with trading platforms and conformance to regulatory requirements.

    Learning Outcomes

    Upon completion of this programme, participants will be able to:
    • explain SC’s Guidelines on Contract for Difference (CFD)
    • describe the CFD ecosystem and their roles
    • describe the CFD features, characteristics and its underlying assets
    • explain the trading and settlements of CFD
    • describe the risks associated with CFD trading
    • determine an effective trading strategies for buying and selling of CFD
    • relate to the relevant regulatory frameworks and guidelines pertaining to CFD

    Methodology

    Interactive presentations and Question-and-Answer (Q&A) sessions

    Target Audience

    Individuals
    Dealers’ representatives, representatives dealing in derivatives, analysts and fund managers, compliance officers, legal advisors.

    Institutions
    Stockbroking firms, fund management companies.

    Competencies

    Foundational (Product Knowledge) – Capital Market Products
    Functional (Process Skills) – Derivatives Dealing
  • Programme Outline

    8.30 am Registration
    9.00 am
     
     
    Introduction To Contract For Difference (CFD)
    • What is CFD and its features and characteristics
    • CFD market  landscape around the region (Singapore & Hong Kong)
    • Participants in the market and their roles
    • Why invest in CFD
    • How’s the demand and supply
    • Who are the CFD players
    10.30 am Coffee Break
    10.45 am
     
     
    The Regulatory Requirement and Guidelines For CFD
    • Product requirements and parameters
    • Provider requirements
    1. Operation-related requirement
    2. Marketing And education requirements
    • Disclosure requirements
    1. Required documentation
    2. Product  highlight sheet (PHS) guidelines
    • Submission requirement
    1. Disclosure documents and lodgement of PHS
    Product highlight sheet guidelines
    11.45am Key Components of CFD Market
    • Type of models
    1. Marketing making vs direct market access
    • Disclosure requirements
    • General pricing principles
    • How CFD is traded and settle
    • Margin requirements and how to manage leverage
    • Charges and fees
    • Types of underlying assets and its characteristics
     
    1.00 pm Lunch Break
    2.00 pm Managing The Risks Involved in CFD
    • Type of risk
    1. Conter party risk
    2. Market risk
    3. Client’s money risk
    4. Types of risk
    5. Liquidity risk
    6. Risk specific to assets class
    • Risk management and rules applied in protecting capital
    3.30 pm Coffee Break
    3.45pm Trading Strategies For CFD
    • Trend analysis
    • Price analysis
    • Pattern analysis
    • Time analysis
    • Combining techniques for buying and selling
    When and how to enter and exit a trade for maximum
    5.00 pm End of Programme
  • Programme Fees

    Normal Price
    RM 950