Posts tagged: business

The difference between CFD and futures trading in Singapore

trading possibilitiesBoth CFDs and futures trading are popular investment options among retail traders in Singapore. However, while they may appear to be quite similar in their description of the nature of trade being ‘off the exchange,’ there is one key difference between these two types of financial instruments that would influence your choice on which to use. When it comes to trading derivatives in Singapore, investors are spoilt for choice.

Futures and options, both modern investment instruments worldwide, are available here. However, if you’re new to the world of investing or trading financial securities like futures, you might be confused by the difference between these two derivatives types.

This article explains a contract for difference (CFD) and discusses its risks. It also looks at future contracts and how they differ from a CFD. The article then compares the two financial instruments before concluding with some concluding remarks on which instrument is better suited for an investor given his risk profile.

What is a contract for difference?

A contract difference is a type of derivative product based on the difference between an underlying asset price and its strike price at the point of expiry. For example, if you were to buy a CFD on Apple Inc. (AAPL) with a strike price of $100 per share and AAPL stocks subsequently traded above $110 at expiry, you would be paid the difference of $10 x 100 = $1000 by your broker even though you never actually took ownership of the stock.

If, however, AAPL shares traded below $90 by expiration, then there would be no payout to you as the contract has no value since the share traded is lower than its strike price.

As mentioned earlier, CFDs are derivatives, so there is always counterparty risk involved in trading them.

What is a futures contract?

The main difference between a CFD and a future contract is that the former does not have an expiry date while the latter has. It means there is no counterparty involved in trading futures contracts, unlike in a CFD where your broker is your counterparty.

As such, futures traders are only exposed to minimal risks. This transaction usually takes place on an exchange platform that acts as the intermediary for both parties, assuring performance and payment. It does result in much-reduced counterparty risk. One example of such exchanges would be Singapore Exchange (SGX).

What is the difference between a CFD and a future?

The main difference between a contract for difference and a future contract is that the former does not have an expiry date while the latter has. It means there is no counterparty involved in trading futures contracts, unlike in a CFD where your broker is your counterparty. As such, futures traders are only exposed to minimal risks. This transaction usually takes place on an exchange platform that acts as the intermediary for both parties, assuring performance and payment. It results in much-reduced counterparty risk. One example of such exchanges would be Singapore Exchange (SGX).

In Conclusion

We hope this article has helped you better understand the main differences between futures and CFD trading. If you are looking to trade either of these products, we recommend partnering with a reputable broker who can help guide your decisions as well as provide access to research tools that will make investing in either product more profitable for you.

Be sure not to invest without understanding all the risks associated with both these types of trades before committing any money or taking on debt from margin lending services offered by brokers. With proper education and guidance, there is no reason why anyone should be apprehensive about entering into one form of derivatives trading or another.

If you are interested in investing in CFDs or futures, check out Saxo Bank CFD.

What Services Are Provided By The Accounting Firms In New Zealand?

keep your accounts intactLike every accounting firm, the accounting firms in New Zealand incorporate the duty of auditing bank statements, accounting consultancy services and bookkeeping. These services are performed by companies who have their own accounting firms compared to the other normal accounting industries. New Zealand compared to many other international competitors around the world from the USA which serves the 80% of the Fortune 500 in the world. But for the accounting firms in NZ, they are not making a bad mark themselves as statistical reports say. The accounting firm Auckland serves as the main hub for all these accounting firms in NZ, serving important clients worldwide too.

What Separates The Accounting Firms From New Zealand From All Over The World?

These accounting firms look at 2 factors, ensuring that their clients make money and at the same they should make money too. But how do negotiate this win-win situation on the table for both the parties? Simple, pure professionalism. The USA has dominated the market in landing the big money clients, but what has stopped New Zealand from doing the same? Nothing! Advancement in technology over the years has enabled these firms to organically expand their business across international borders. How? Time to find out.

New Zealand Takes In Account All The Accounts

NZ accounting firms take in all of its resources, capital, the trained and professional human resources, henceforth they employ it all into their industry with the objective of catching and bringing in more clients, serving them to the best of their interests. This is what is provided on the table.

1. Monitoring & Controlling Business Risk Management

What is the risk here? Obviously the factor of considering that businesses can enter into a situation where there is a huge account of risks. This is why they hire accounting firms to stay beyond the curve. How do they make that happen? By using data and analytics. This is how they monitor what is happening on the charts, how they are performing and how are there competitors performing, hence this enables these firms to give them a blueprint based on predictive insight and what step to take next avoiding all those risk obstacles. Through this you are also telling your clients the consumer behaviour outcome and through this businesses with full awareness know how to optimize their business.

2. Smooth & Optimized Transactions

This is when you are enabling your business to get their money out from the customer pockets into their pockets in an efficient streamline system. Online billing systems and n transaction systems are overlooked, where the firms can circumnavigate the best way to integrate their cash flows.

3. Analyzed Risk Outcomes & Future Planning Based On Consumer Behavior

In order to integrate the consistent flow of the businesses, the NZ accounting firms take into consideration the risk and exposure it can take from all sides, predicted and analyzed through charts and monitors. This allows CFOs or CEOs to take proper informed decisions on what step to take next keeping the predictable outcomes produced by the firms, keeping in factor market behavior.

All You Need To Know About Small Cash Loans Online

loan to growthAre you wondering that how you can get a financial help for your small business loan? If yes, then this article has got you covered with the details. There are several expenses that a business needs to look out for as they have to pay not only the employees but also other people. Businesses need small cash loans for inventories, and renovation etc. These loans are becoming popular because they are easing the concerns of an average business man. Such loans allow the person to look beyond expenses towards profitability. Small cash loans give a fair chance of optimization and thus they are extremely handy. The amount of loans differ from businesses to businesses. Let’s dig into the details about why such loans are helpful for the growth of your overall business.

Simplified Application Process

Small cash loans own a simplified application process contrary to the loans which are offered for the large scale business. You will have to prepare certain documentations in order to get a application approved faster. You need to provide your personal details along with the proof of recurring income that sits in your bank account. One business should have these things ready for ensuing a fast acceptance. Remember that any missing document can become a hurdle thus make sure that you are scanning all the documentation twice before submitting it for approval.

Importance Of Good Credit For Small Cash Loans

Ensure that you have a good credit history. You might have heard this term a lot in business. Such a term suggests that you own a good standing with the bank. Ensure that all your dues are clear before a deadline. Your credit history reflect your liability. It reflects that how responsible you are and how well you business can be trusted interms of a loan repayment. There can still be chances of getting approved for small cash loans if you own a bad credit. There are certain banks which understands that you need a loan during crises and in such scenarios you are bound to have a bad history. You must still apply and see that how much further your application get. There are few cases where business were granted small cash loans despite of the bad credit but they had regular stream of income which to an extend satisfied lender’s loan criteria.

Amount Of Small Cash Loans

As a small business owner you should own a fair knowledge of your requirement. You need to know the precise amount and how much you need to borrow. As a loan taker you will not only be paying the same amount but also the additional interest thus be careful about the amount. One should consult with the finance department and specially the accountant who can sketch a clear picture as to where the business stands.

What is the easiest loan to get approved for?

easy loansAre you wondering what is the easiest loan to get if you own bad credit? If yes, then this article has got you covered. You will not agree more that getting loans with bad credit is tough. Many times, the loans which a person with bad credit is offered have a high-interest rate. Such loans often need to get paid within a certain short repayment time-frame. But do not crease your forehead as you can take the approach of getting the secured loans. If you are wondering what these secured loans are then these are the easiest types of loans. Such loans include personal installment loans, a loan with a cosigner, and a car title loan. Let’s dig into each type of loan in detail.

Personal small loans for bad credit owners

Personal installment loans are there for the people who own bad credit. Such loans are not only affordable but also practical. You can get these loans for personal purposes which include debt loans, student loans, medical bill repayment loans. One can also avail of this kind of easy loan if in a need to purchase a new appliance. You can return the money with the interest rate and on monthly installments. This installment period stretches from two to five years and as far as the interest rate is considered the annual percentage rate is what influences it. If you are confused about what the annual percentage rate is then it is a rate that depends on your credit score, income, debt, and reliance. Furthermore, you should know that personal loans do not back up the collateral. Now that you know so much about personal loans, you should also know that there are certain steps to borrow these personal loans. We know that small loans for bad credit owners are easy when it comes to personal loans but that ease should not be overestimated. Small loans for bad credit owners can become a pain if they will not be definitive about their boundaries. One must be clear how much money is needed. If as a business owner you are not clear about the details then you should seek help from your accountant. Remember that the more loan you take, the more interest rate you will be paying in the end. So become cautious even if it is a small personal loan. Small loans for bad credit owners can be hard to be approved if they are not reflecting trustworthiness in a few areas. You should aim to get recurring income so that loan companies can rely on your business. Trust is extremely vital and it can be achieved on the recurrence.

Car Title small loans for bad credit owners

Another type of easy small loans for bad credit owners is the car title loan. As the name suggests, this type of loan analyses the value of your vehicle for securing a loan. Many people do not recommend such easy small loans for bad credit owners because they have high-interest rates and they only lend money on a fraction of a car’s worth which is quite unfair.

Online Business Loans: What They Are & When To Get One

loan for your businessbudgetingLiving in the twenty-first century, it is obvious that the internet has changed our lives and the world around us drastically. The way we manage and handle businesses as well. The internet allows us to be able to work remotely, market and communicate with our new customers, receive and send payments and it also allows us to communicate with our colleagues and coworkers. It has also changed the world around them business owners and how they see it. One of the main benefits for them is the introduction of online business loan. Thanks to it, there is no need for a business owner to rush to the local bank branch and wait in lines to receive a loan. Due to the internet, this all procedure and cut down to short and only specific and important things are required in the process. If you don’t know about online business loan then there is nothing to worry about, this article has got you covered. This article will guide you to let you know what are online business loan and where one can get it.interest rates,

What is online business loan?

As the word itself suggests, online business loan is a loan that you can apply while sitting in your home via the internet and receive it too without much hectic process as compared to going to the local bank. The process is not that hard and one can easily do it by visiting the lender’s website and putting your necessary information through a form that will surely be secured. Moreover, your documentation will also be required which will be submitted via secure web portals. Some web applications also give a chance to the lender to view your bank statements without any problem linked via a bank account. It has been seen that mostly, the whole procedure can be completed online without any hectic procedure but some lender may also verify via a phone call or they can even request some information.

When to get online business loan?

Many people wonder and get confused about when to get the online business loan. It’s the answer is very simple and clear which is, when you are starting a business. Many people when starting a business are short of money, which is quite acceptable and is of no big surprise. Even if they have some cash, they still require money to keep their business running as there are luckily only a few businesses that make a profit as soon as they are launched. Most of the businesses are in a loss in the starting which is totally okay. On the other hand, they need the capital to hire and pay salaries to their employees, get more machinery and expand their services as well as products. Some other aspects which are not taken into account are paying taxes, creating a safety net and covering construction costs as well. This is the perfect time for opting for online business loan as it helps the businessman in their respective field. For these type of situations, online business loan comes to the rescue and plays its part. Due to online business loan many businessman can continue their journey being relieved for a short span of time.