How to open a CFD position

Before you start trading CFDs, it is recommended to first practice buying and selling using a demo account. Click here to open one now or log in here.

Here are five simple steps to open your first CFD position:

1. Choose your market

2. Decide whether you want to go long or short

3. Determine the size of your trade

4. Set stop-loss and take-profit orders

5. Monitor your trade and close the position

1. Choose your market

There are many tools that can help you find a trade that matches your trading preferences.

To get up-to-date information about the markets, it is useful to follow financial news and analyses. Popular markets among beginner traders include major currency pairs, large stock indices, and blue-chip stocks.

Choose the asset you want to trade and use the search function on the platform to find it in the list.

2. Decide whether you want to go long or short

Now it's time to decide whether the market you've chosen is expected to rise (bullish) or fall (bearish). Traders make decisions based on various factors — fundamental analysts focus on economic data and news, while technical traders primarily focus on price charts.

On the platform, you will see the buy (ask) and sell (bid) prices.

If you think the asset price will go up, select buy; if you expect a drop, select sell.

Click on the selected asset to open its ticket, where you can choose between buying or selling.

3. Determine the size of your trade

The number of CFDs you buy or sell will determine the value of your trades and how much you can earn or lose based on price movements in the market.

The value of individual CFDs varies depending on the asset you are trading. For example, with stocks, a CFD is equivalent to buying or selling one share, while in the forex market, one CFD equals one lot.
Additionally, your CFD trade may be valued in different currencies depending on the specific asset you're trading.

Keep in mind that CFD trading is leveraged, so you don't need to deposit the full value of your trade upfront.

Commission or spread?

When opening a CFD position, you pay in different ways depending on the type of market you are trading. If you trade stocks via CFDs, you will usually pay a commission, similar to traditional investing in stocks through a broker.

4. Set stop-loss and take-profit orders

Stop-loss and take-profit orders (also known as limits) are used to automatically close your trade when it reaches a predefined level. These orders are a key part of risk management.

Set a stop-loss order to tell your broker to close your position if it reaches a certain loss level. On the other hand, a take-profit order will close your trade if the price reaches a level that brings you a profit.
Decide on your target profit and maximum loss and set the stop-loss and take-profit orders accordingly.

5. Monitor your trade and close the position

Once your trade is open, you can monitor the current profit or loss on the "open positions" tab of your trading platform. As the market moves up or down, you will see how these price movements affect the value of your position.

When you want to close the trade, you need to trade in the opposite direction to the one you opened. If you initially sold 15 CFDs, you will need to buy 15 CFDs to balance your position. Alternatively, if the price reaches your stop-loss or take-profit level, your position will close automatically.

Monitor your open trade on the "open positions" tab of your platform. To close your position, trade in the opposite direction to how you opened it or simply click the "CLOSE" button.