Trading Basics

What is a CFD?

A Contract for Difference (CFD) lets you take a position on whether the price of an asset — such as a cryptocurrency or a currency pair — will rise or fall, without owning the underlying asset. Your profit or loss is based on the difference between the price when you open and close the position.

Going long or short

You can go long (buy) if you expect the price to rise, or short (sell) if you expect it to fall. With CFDs you can potentially profit in both directions — but you can also lose in both directions if the market moves against you.

Leverage & margin

Leverage lets you open a position larger than the cash you put up. The amount you must deposit to open the position is called the margin. Leverage magnifies both gains and losses — a small price move can have a large effect on your account.

If your margin level falls too low, your positions may be closed automatically (stop-out / liquidation) without notice, to limit further losses. Applicable leverage and margin requirements are shown on the platform.

Spreads & costs

The main cost of a trade is the spread — the difference between the buy and sell price. Positions held overnight may also incur a swap/financing charge. Current costs are shown on the platform.

Order types

• Market order — executes at the current available price.
• Limit order — executes at a price you set.
• Stop-loss — closes a position to limit a loss.
• Take-profit — closes a position once a target profit is reached.

Managing your risk

• Decide your maximum acceptable loss before you open a position.
• Use stop-loss orders, and size positions so a single trade cannot wipe out your account.
• Do not trade with money you cannot afford to lose.
• Do your own research — see our Market Analysis & Resources page.