Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
The current tariff war has rattled the global markets and trade. While the impact on countless economies is evident, one could also interpret the sentiment by looking at news headlines alone.
Words like ‘escalate’, ‘harmful’, ‘panic’, and ‘retaliate’ show up one too many times in the above the fold.
No wonder the pessimistic nature of these news coverages has made Americans feel like a dark cloud of recession is hanging over them.
Despite the uncertainty associated with tariffs, it’s interesting to note that there was a time when tariffs were not perceived as a threat but as essential instruments of nation-building.
And this perception isn’t exclusive to the past. As we shall see, tariffs can play a symbiotic role with local manufacturing and energy policy to summon a positive economic outcome.
Tariffs From A Historical Perspective
A discussion on the history of tariffs is incomplete without mentioning the brainchild behind American tariffs, Alexander Hamilton.
As the first US Secretary of the Treasury, he laid the intellectual groundwork for the nation’s early economic model in his seminal Report on Manufactures (1791).
He argued that protective tariffs should be used to nurture America’s fledgling industrial base.
Hamilton’s model was nuanced:
Imposing high tariffs on imports that the US could produce domestically. This move would protect American manufacturers from more mature foreign competition.
Allow zero or minimal tariffs on imports that Americans couldn’t produce themselves.
Use tariffs to raise government revenue, especially since the US had no income tax until 1913.
But Hamilton didn’t stop there.
He advocated the Tariff Act of 1789, the first legislation to be gazetted by the First Congress. The act served two key purposes: promoting trade and raising revenue for the federal government.
The Current State Of Tariffs And Fear
While tariffs were created from a vision of economic independence, their iterations today, especially Trump’s version, present a more aggressive front.
Trump’s tariffs were conceived with the following goals:
Encouraging US consumers to purchase American-made goods.
Increase the amount of tax.
Attract more investments in the US.
Even though these goals make sense on paper, Trump’s trade salvos have spooked the markets. The current scenario mirrors the 2018 – 2019 US – China trade war too much for anyone’s comfort.
The threat of tariffs triggers several fears:
Supply chain disruptions: Tariffs could sever reliable, cost-effective foreign sourcing arrangements.
Higher costs: Businesses relying on foreign inputs face increased expenses.
Squeezed margins: Import-heavy companies may find it hard to maintain profitability.
Inflation: If the cost of goods rises and is passed to consumers, inflation can climb, prompting central banks to maintain higher interest rates.
Silver Lining Behind Market Uncertainty
Judging by the bleak recession warnings on mainstream media and the heated discourse among investors, fear rules over today’s global markets.
But still, keeping our heads up could do wonders.
Rather than being purely inflationary or restrictive, tariffs could catalyse structural change in the U.S. economy.
Going along the lines of Trump’s logic, US companies might bring production back to American soil if importing becomes too costly.
This reshoring process could:
Revive domestic manufacturing, especially in sectors like steel, semiconductors, and consumer electronics.
Encourage more jobs and higher employment, leading to stronger consumer spending and economic growth.
Reduce reliance on foreign supply chains, reinforcing national resilience during geopolitical tension.
For example, when Trump imposed steel tariffs in 2018, US Steel restarted plants in Illinois and Alabama. Similar outcomes could be seen across other industries if tariffs are combined with investment incentives and infrastructure support.
Yes, tariffs may raise prices.
But they can also raise wages and employment. This balance between costs and benefits is where strategy becomes critical.
Tariffs on their own are blunt tools. When supported by domestic production and energy policy, their inflationary impact can be contained or even reversed.
‘Drill Baby Drill’ As An Inflation Hedge
One of America’s greatest strategic advantages in the tariff-inflation debate is energy dominance.
Under the Trump administration’s ‘Drill Baby Drill’ agenda, the U.S. accomplished a historic surge in domestic oil and gas production, briefly becoming the world’s top crude oil producer and achieving true energy independence for the first time in generations.
Here’s how scaling up drilling activities could be an ideal hedge against inflation:
Energy abundance drives prices down: More American oil means cheaper fuel, slashing transportation and manufacturing costs economy-wide. This acts as a natural inflation relief valve, putting money back in consumers’ pockets.
Tariffs meet their match: Even if trade policies raise import costs, affordable energy offsets those pressures, potentially neutralising inflation or even pushing prices lower.
Jobs boom, prosperity rises: Expanding oil, gas, and LNG production doesn’t just strengthen exports. It creates high-wage jobs, revitalises communities, and secures America’s industrial backbone.
In short, tariffs and energy independence aren’t just compatible. They’re complementary forces for resilience.
There’s Good In Tariffs If You Take The Bigger Picture
Is fear justified in the sphere of tariff wars?
Rightfully so, but only because the markets are in jitters due to a possible recession and if the players react to fear instead of fundamentals.
However, tariffs don’t exist in isolation. When you connect the dots between tariffs, revived American manufacturing and increased oil and gas production, they can reshape the US economy for the better.
As the saying goes: Tariffs may raise prices, but they also raise jobs. And more jobs are bullish.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
To provide a favorable trading environment to our clients, VT Markets will modify the trading setting of all Shares products. Please refer to the following details:
1. All US Shares products leverage will be adjusted to 20:1.
2. MT5 All Shares products: New positions opened within 30 minutes before market closing and after market opening will start with a leverage of 5:1. After the mentioned period, the leverage will be resumed to original leverage and will not be adjusted back to 5:1.
MT4 will not be affected.
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
Friendly reminders:
1. All specifications for Shares CFD stay the same except leverage during the mentioned period.
2. The margin requirement of the trade may be affected by this adjustment. Please make sure the funds in your account are sufficient to hold the position before this adjustment.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Do you regularly see social media influencers sharing financial and investment tips? These influencers are masterful at capturing their viewers’ attention by making hundreds of dollars in profits within minutes!
Upon a closer look, these individuals are experienced forex and gold traders. In other words, they actively trade CFDs as a source of income.
Yes, terms like forex and gold are familiar, but what exactly is CFD trading?
What is CFD Trading?
CFD trading involves speculating the rise or fall of a financial asset’s price. You profit or lose based on predicting the asset’s price movement. Examples of financial assets in CFD trading are currency pairs, gold, Bitcoin, and indices.
CFD stands for ‘Contract for Difference.’ The contract refers to an agreement between a trader and a broker to pay the price difference of an underlying asset. This difference is calculated from when the contract is opened until it’s closed.
CFD trading allows traders to trade financial assets without owning them. This is what price speculation in CFD trading is all about.
Do you need a simple analogy to understand CFD trading?
Let’s say you and a friend are clashing over Bitcoin’s price direction in 15 minutes. You predict it will rise, while your friend says it will slide.
Both of you wager RM100 each. If Bitcoin’s price rises, your friend pays you the price difference, and vice versa if it falls.
After 15 minutes, Bitcoin’s price increases by RM10. You gain RM10, which brings your total to RM110, while your friend loses RM10, leaving her with RM90.
In this scenario, neither of you owns Bitcoin, but both transact based on price speculation.
This is the simplified definition of CFD trading.
What Do You Need to Start CFD Trading?
1. Capital
Good news for beginners: CFD trading doesn’t require large initial capital. With VT Markets, you can own a live trading account with a minimum deposit of $50.
2. Broker Account
Open an account with a CFD broker. (Refer to point 1 above!)
3. MetaTrader 4/5 Platform
This charting platform lets you analyse markets, select assets, choose lot sizes, and execute trades. Available as MetaTrader 4 (MT4) or MetaTrader 5 (MT5).
4. Trading Plan
This plan outlines your strategy: Will you trade hourly, daily, or within minutes? How much risk can you tolerate per trade? A trading plan guides you to trade safely and effectively.
5. Discipline and Resilience
Mental strength is crucial in CFD trading. While you can earn hundreds in minutes, the next trade could wipe out profits just as fast. Managing your psychology is key to long-term success.
6. Basic CFD Trading Knowledge
Understand the financial assets you trade. Learn technical and fundamental analysis. Technical skills help with interpreting charts and spotting opportunities, while fundamentals explain market sentiment via economic and geopolitical news.
Unlike precious metals, which are acquired from mining activities, agricultural products like cocoa, coffee, cotton, and sugar are harvested from farms.
Governments and firms can raise their capital by securing bonds from investors. Bond trading through CFD offers a systematic way to speculate on this instrument’s price movements.
Advantages and Risks of CFD Trading
Advantages
1. Leverage and Small Capital
Got $100 but want to trade $1,000? That’s where leverage comes in. It boosts your lot size with a small capital.
2. Access to Global Markets
CFD trading isn’t limited to forex. You can also trade gold, silver, oil, stocks, and indices from one broker account.
3. No Asset Ownership Needed
Want to trade oil? With CFDs, you don’t need to buy physical barrels. Remember, CFD trading is about price movement, not ownership.
4. Two-Way Opportunity
Traders can open buy or sell positions, profiting in a rising or falling market.
Risks
1. Market Volatility
Asset prices can change rapidly, causing significant fluctuations in short periods.
2. Economic News
You need to be attuned to global economic and geopolitical news. Markets can swing in the blink of an eye based on new developments.
3. Leverage
It’s a double-edged sword. While leverage increases your exposure, it can also magnify your losses if the market moves against you.
How to Trade CFDs
For simplicity, this section focuses on trading with MetaTrader 4.
A reminder – you must register with a broker before logging into MT4.
As a beginner, you can duplicate the steps below with a demo account. A demo account allows you to simulate trading in actual market conditions.
1. Choose the asset you want to trade. Let’s say you want to sell USDJPY.
2. Click ‘Open chart’.
3. Change the timeframe accordingly by tapping on the chart. M1, M5, M15 and M30 produce a single candlestick in 1, 5, 15 and 30 minutes, respectively. H1 and H4 give you an hour and 4-hour candlestick. D1 gives you a day candlestick, W1 a week candlestick, and MN consolidates a month’s worth of candlesticks.
4. Click the ‘+’ icon to open a Buy or Sell position.
5. Set your Stop Loss and Take Profit. Stop Loss protects you from further losses. Take Profit sets your target to exit and lock in profits.
Then, choose your lot size based on your capital: Standard lot (1.0), Mini lot (0.1), Micro lot (0.01) and Nano lot (0.001). The bigger your capital, the bigger the lot size that you can pick.
6. Finally, click ‘Sell’ to place your trade!
That’s all; we have covered the basic steps for trading on MetaTrader 4.
In actual trading, you’ll need to analyse the market before picking a position. This is where your trading plan helps before clicking ‘Buy’ or ‘Sell’.
How to Choose a Trusted CFD Broker
A CFD broker provides financial services and access to CFD markets. Here’s what to consider when choosing a reliable one:
1. Regulatory Compliance
In CFD trading, you’ll frequently deposit and withdraw money. So, your broker must be regulated to ensure fund safety.
A trusted broker should hold relevant licenses and be regulated by reputable authorities in the financial industry to ensure your fund’s security. Reputable regulators include:
– Financial Sector Conduct Authority
– Australian Securities & Investment Commission
– Financial Services Commission, Mauritius
2. Fund Insurance
Let’s touch wood. What happens if the broker goes bankrupt? You want assurance that your funds are safe.
Worry not! There are responsible brokers offering insurance protection if they have to foreclose.
Here’s one of the responsible brokers – VT Markets offers fund protection of up to $1,000,000 in the unlikely event of VT Market’s foreclosure.
Even though the odds of this mishap are like a speckle of dust, this scheme by VT Markets underlines its commitment to secure clients’ funds and reinforce its reputation as a trusted CFD trading broker.
3. Fast Deposits & Withdrawals
Ensure you can deposit and withdraw from the broker account within the same day.
4. Deep Liquidity
Liquidity determines how easily an asset can be traded. Check the spread. A lower spread means higher liquidity.
For example, VT Markets offers spreads as low as 0.0 pips.
5. Various Account Types
From Standard STP to ECN, Cent, and swap-free accounts, brokers should offer options to suit your trading style.
6. Multiple Deposit & Withdrawal Methods
The more options, the easier it is to manage your funds.
7. Wide Trading Assets
Diversification helps reduce risk. Look for brokers offering forex, gold, oil, commodities, crypto, ETFs, and stocks.
8. Education
Brokers that offer trading education through blogs, videos, webinars, and seminars show they care about your success.
9. Customer Support
Make sure the broker offers 24/7 support and easy access to their service team.
Are You Ready To Trade CFD?
Now you understand what CFD trading is, its requirements, available assets, advantages and risks, how to use MetaTrader 4, and how to pick a reliable broker.
If you’re ready to take the first step, why not open a live account with us?
You just need a minimum of $50 to own a VT Markets trading account.
Please note that the dividends of the following products will be adjusted accordingly. Index dividends will be executed separately through a balance statement directly to your trading account, and the comment will be in the following format “Div & Product Name & Net Volume”.
Please refer to the table below for more details:
The above data is for reference only, please refer to the MT4/MT5 software for specific data.
If you’d like more information, please don’t hesitate to contact [email protected].
Insights 
VT 
