In the list of available currency pairs, find the one you want to buy or sell, and click “Buy” or “Sell”. Here we will buy EURUSD. Then, in the window that opens, enter the amount you wish to invest, a leverage and then click on “Open the position” to finish. You also have the option of setting up a Stop loss and a Take profit.
Basics needed to open a trading position on CTB
As you saw in the previous step, opening an online trading position requires entering several parameters:
- The amount (or units)
There is also talk of exhibitions. Learn all you need to know below:
Stop-loss & Take-profit
A stop-loss is an order that will automatically close your position from a certain level of loss, while a take profit is an order that will automatically close your position from a certain level of gain. You can thus take a position (buy or sell), and associate a stop-loss and a take-profit to it so that you can then go about your business and not have to follow the price in front of your screen. Simply go for the Global CTB review and find the best brokerage platform in this manner.
Concretely, a leverage effect allows you to invest in the financial markets and financial products with more money than what you have in your trading account. Suppose you want to open a position equivalent to 500 Facebook shares.
In the case of a classic share purchase, this means that you have to pay the full cost of the shares up front. With CFDs and leverage, you could take this position with only a fraction of the trade amount in your trading account. Most online brokers offer leverage of 5 to 20 for CFDs on stocks, and 50 to 500 for CFDs on forex.
This means that profits and losses can be greatly increased by leverage, and losses can exceed deposits, although most brokers have security systems that avoid this). This is why it is important to use this leverage with caution.