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Summary
CFD stands for Contract for Difference and has existed in different forms for many years. Simply put, CFD is a financial instrument that uses margin to buy or sell financial products (such as futures) in a transaction without having to invest the full value of the product. Stock CFDs appeared in the 1990s and were introduced by stock traders to allow hedge fund clients to use high leverage and expand downside exposure risks. There is another advantage of CFDs: there is no need to pay stamp duty. It was not until the end of the 1990s, with the rapid development of technology, that CFDs received widespread attention, making CFDs a major market in the past ten years. Because of the use of leverage, traders have the opportunity to use leverage to conduct speculative trading on highly volatile stocks in a short period of time. Nowadays, CFDs have been widely used in multiple markets, not limited to the stock market. It is not only available to professional traders, but also to retail customers at home. According to related reports, more than 25% of the total trading volume in the UK stock market is CFD trading. Now Canada, Singapore and Eastern Europe and other countries have also started CFD trading.
Change Order
Once you open a position, you can only modify the stop-profit and stop-loss when the market opens
Partial liquidation
Double-click the submitted order to form a deal order, and you can partially close the position. Then, select the lot size (lot size) of the order you want to close on the deal order.
How to add indicators
To add an indicator, just click the indicator name in the navigation table and drag it into the chart. When you add an indicator to the chart, a dialog box will pop up, allowing you to set the added indicator.
How to create a template
If you have customized a chart or added multiple indicators to the chart, you may want to keep this template to quickly copy to other charts.
What is margin trading
Margin trading is a form of foreign exchange spot trading. Since the transaction is not settled, you do not need to exchange it for any commodities or stocks.
trade
To trade CFDs, you only need to deposit the initial margin required by the commodity in your account.
Basic term
01.What is the bid/ask price?
Each currency pair/commodity has prices in two directions, the bid price and the ask price. The buy order has been executed at the bid price when the transaction is executed, and the sell order has been executed at the ask price, and the closing direction is opposite.
02.What are points/points?
1 point usually refers to the smallest increase or decrease in the price. For example, the last digit of the decimal point of the gold XAUUSD quotation 1297.58 is one point. If the price fluctuates to 1307.58, it will increase by 10 dollars, which is equivalent to 1000 points.
03.What is point value?
The point value is the currency pair or commodity traded. The profit or loss caused by each fluctuation point is generally measured in a standard lot. The positive currency pair or commodity, such as XAUUSD, EURUSD, GBPUSD, etc., is the point value of one point. It is 1 US dollar; reverse currency pairs or commodities, for example: USDJPY, USDCHF, USDCAD, etc., the value of one point will be slightly less than 1 US dollar.
04.What is the lot size?
The lot size of the MT5 platform refers to the number of orders placed. 1 is a standard lot. The minimum trading lot size for most commodity/currency pairs is 0.01 lot.