How to Trade
The term CFDs comes from “Contract for Difference”, it is a trading system where you do not take physical ownership of the underlying asset. Instead, you speculate on the difference in an asset’s price when you open and close a trade. When working with CFDs, traders first choose an underlying asset that they are familiar with (learn more about the list on our asset index),
Decide whether to place a buy order, meaning they expect the price of the asset will go up, or a sell order, meaning they expect the price of the asset will go down.
If you are correct, you earn the difference between the price of the asset at the order’s open and at its’ close.
PLACE AN ORDER IN 3 QUICK STEPS:
- CHOOSE AN ASSET
Popular assets such as Crude Oil, EUR/USD, and much more!
- PLACE YOUR ORDER
The price is displayed and updated constantly
- CLOSE THE ORDER WHEN YOU DECIDE
Figure out how much profit and loss you’re comfortable with.
Traders keep track of the price direction of their orders, and decide when to close open positions based on when they feel the asset’s price has gained enough to justify the initial cost of the order.
If the trade begins to lose money, the trader needs to decide when to close the position to limit losses.