How to Trade Stock CFDs?

Now you can trade major company stocks from the world’s leading markets and make substantial profits even from minor movements in the markets via stock CFD’s since these are traded on margin. The term CFD or contract for difference, is a contract between two parties, for our purpose it is between the trader and the broker or ‘buyer’ and ‘seller’. It allows traders to speculate on rising and falling prices on shares, currencies, indices, commodities and treasuries, within a certain time frame.

Long Position – The Term of Prices Moving Up

Traders placing a ‘long position’ would speculate on a certain stock whether the price would move up within a specified time.

Short Position – Prices Moving Down

Traders placing a ‘short position’ would speculate on a certain stock whether the price would move down within a specified time.

Traders find that with CFD trading and a low capital investment, their potential return (or loss) is greater than trading the traditional way with binary options. Binary options trading potential return is predetermined and dependent solely on your initial invested sum and making a correct prediction.

Let’s Get Started

Traders who are unfamiliar with CFD trading and wish to learn the ins and outs can sign up with 24option and use their demo account which comes with $10,000 virtual money, and is a mirror of their trading platform. It comes with live updates and added extra advanced financial graphs and tools. 24option has one of the largest choices of CFD stocks to choose from and is an award winning broker and do not have any hidden fees.

Do Your Homework First

You have done your homework by choosing your preferred stock, which according to the latest financial news may lose its value in the next couple of days. So now you have to make the decision will the price continue to fall or will it go up, should you buy or sell?

Step 1

After signing up, enter the platform which will be displayed on the upper toolbar for CFD’s.

Step 2

On the leftmost column on the screen you will be given a choice of: All, Indices, Forex, Stock or Commodities to choose from. Choose the desired asset and on the live chart you will be able to see how the asset is performing. This will help you to make a better decision on whether the price will go ‘up’ or ‘down’.

• If you decide to buy: this would mean the stock price needs to go higher than the buy price.
• To sell would mean: the stock price needs to go lower than the sell price.
• On the right side there is a graph, when it is green, it indicates that it is ‘In the money’, and red indicates that it is ‘Out of the money’.

Step 3

So ‘buy’ or ‘sell make your decision and choose. The numbers within the Buy/Sell buttons represent the points needed to be passed for a successful trade. i.e. if the number in Buy is 1.1158, then your trade must be higher than 1.1158 when the trade closes to be considered a successful trade, if the trade closes lower than 1.1158 then your trade is not successful.

Step 4

The time frame in which you wish to place the trade can be selected on the right of the Buy/Sell button in the Trade/Order box.

• If you choose trade, trading will start immediately.
• Order will allow you to commence trading after you have put in the criteria you want before events transpire to make the trade.

It is important to note that: As you are making a ‘prediction’ on the movement of prices, there is the likelihood that your prediction could go the other way and traders need to be aware that they could lose their investment.

Recommended Broker for Trading Stocks & CFDs

24option offers a selection of stocks CFDs and other instruments like commodities and indices choose from. Their customer support is available around the clock 24/7 and offer support in a variety of languages.

Click here to trade with 24option!

*Forex/CFD trading involves substantial risk and may result in a loss greater than the invested capital

Leave a Reply