Remember, the higher the value of the trade, the more money you need to deposit. You should always make sure that you have enough free equity in your account to sustain any losses and avoid being placed on margin call. It is important to note that any margin requirement, financing and any unrealised profit or loss will be in the base currency of the selected market, in this case US dollars.
The Wall St index price is now 20, Having reached a comfortable level of profit, you decide to close out your position with a profit and you sell at 20, Supposing the Wall Street Index falls to 20, Deciding to cut your losses, you now close your trade at the new sell price of 20, This represents a As you hold a long position, financing will be automatically debited from your account every night for the period that you hold your position.
You believe that Twitter shares will fall over the coming weeks as the company is set to report a disappointing set of earnings. You decide to sell CFDs. Please note, overnight financing will be debited or credited from your account every night for the period that you hold your position. You were right and the share price of Twitter falls to Three days later you decide to lock in your profits and close the trade. Some hours after placing your trade you see that Twitter has rallied.
Thankfully you had your stop loss in place which cut your losses at the price of Financing will be automatically debited or credited from your account every night for the period that you hold your position. All trading involves risk and losses can exceed deposits.
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