Download - CFD - MACD 19Aug19
CFD EquitiesStock Picks With Charts
Nicholas Tan (CMT, CFTe)
Associate Director LFX and CFD
UOB Kay Hian, Alternative Products
Contract For Difference
• Contract For Difference (CFD)
• Is an agreement between two parties (client
and UOBKH) to settle the difference between
the opening and closing price at the close of
the contract.
• Multiplied by the number of units of the
underlying asset specified in the CFD.
• Underlying = Equity shares
− eg Alibaba
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• No ownership of underlying assets, but still entitled to
certain corporate actions
• Book entry with broker
• Dividend entitlement
• Derivatives – Based on underlying stock
• Allows leverage trading (ie margin)
• Allows short selling
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Contract For Difference
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UOBKH Equity
Omnibus account
CFD Platform - IRESS
DMA Order Flow
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Clients’ Orders
Singapore
Exchange
NY Stock Exchange
BURSA
ASX
We use a Direct Market Access Model
Taking Advantage Of CFD
Think of CFD account as
a margin account with10X leverage
if client is bullish
Allows you to short sell
Think of CFD account as a
stock borrowing account if client
is bearish
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Price Swing
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Is there a way to know the turning points?
Trading With MACD Indicator
• Moving Average
Convergence/Divergence
• Can spot changes in
• Strength, direction, momentum and duration
of a trend
• Using 2 moving averages
• Illustrates changes in trend between
faster and slower MA
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How To Determine The Swing?
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Trading With MACD Indicator
2 uses of MACD
1. Direction
2. Divergence
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Reading The MACD’s Lines
Zero
Line
Bullish
Bearish
Bullish
Crossover
Bearish
Crossover
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Reading The MACD’s Histogram
Crossover
Crossover
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How To Determine The Swing?
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How To Determine The Swing?
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Turning Point - Divergence
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Turning Point - Divergence
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Turning Point - Divergence
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Using MACD In Trading
Can price goes higher?
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Using MACD In Trading
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Questions & Answers
Disclaimer
No part of this document may be reproduced or copied in any
form or by any means without prior written permission/consent
of UOB Kay Hian.
No warranty or representation, express or implied, is made
with respect to the information set out in this proposal, nor will
UOB Kay Hian be responsible for the consequence of reliance
on any opinion or statement set out herein.
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