CFD isn’t a stock. It’s a Contract For Difference which is a “contract” between you and the broker it issues. Price of Tesla share is just the underlying value.
CFDs can be traded outside normal trading hours. If the price goes up or down in those hours, it is just an indication where price might go. But other catalysts can change the direction.
You can trade CFDs on the same day. Keep in mind that “scalping” (opening and closing a position within 5 mins) isn’t allowed. Occasionally it is fine.
1: Companies have stock within different international markets, example: HSBC, CCL, DPZ. prices vary in different locations with contributing factors, such as supply and demand. The price shouldn’t differ due too you using the Invest or CFD platform when purchasing a position.
A Small number of US stocks have the ability to be traded within “Extended Hours”. This terminology is broken down into 2 sections: After Hours UK time is 9pm-1am, Pre-Market is 9am-2pm.
No. Many opportunities are experienced within Extended hours that do not lead into the open market, especially when it’s catalyst news. The best deals tend to be made within Extended Hours (in my opinion). For example a stock may go up 50% in Extended Hours, and drop in value when market opens, or go up a further 10%.
Via my CFD account I’ve been Trading CBL Long and Short today (mainly Short), however when trying to purchase a Long position over the past 1-2 hours its not allowing me, but will allow me to go Long.
I have sufficient funds and can Long and Short other stock worth more in value than CBL.
thank you for replying @sedateme , i have 6 open positions. i can play Long on other stocks i just checked a load again, but CBL still unable to go Long, when selecting it appears as 0, doesn’t display the amount.
If T212 deems a Long position as being scalped previously would that put a restriction on it for a period of time?
I’m currently Shorting x2 5000 shares of CBL, i’ve done this several times today, but only went long twice.
Apologies for the poor picture quality i’m using a TV as a monitor lol
Buy small amounts and ‘invest’ in CFDs is what I do. This approach changed my perception of CFDs. Buying 5 at a time in relatively safe stocks is a sweet spot for me. If a stock goes down 5 dollars, I’m in the red 25 which I can handle. Holding long term though, it may rise 10, 20 or 30 dollars for example and you have good returns. I also incrementally buy 5 new CFDs for every 2 or 3 dollars a stock rises or falls to average my purchase cost out.
Hi @Tefal , I agree you can lose money quickly, especially if not disciplined/understand the stock(s) you’re playing. Should you try the practice account again, i’d suggest reducing the amount you are playing with, or your position size.
when you’re more confident with the stock market/trading you’ll likely view CFD’s in a different way. I adore it, and hope T212 puts more effort into their CFD platform by adding more Stocks, and Extended Hours… but i won’t hold my breath as all discussions and efforts seems to be around Invest and Pies
I never found out the reason why i couldn’t go long, i can only assure you that it wasn’t limited funds/blowing up my account
Haha oh God yes I was 100% uninformed playing it was literally gambling on a coin toss.
I’ve not had the time to research anything regarding cfds (no furlough for me lol) so its something I will stay away from till I have the time to learn and consistently practice first.
But I dont have the personality for it I think I would be the 75%.
But I think it’s really good of t212 to have a practice mode. Otherwise I and many others may have thought “oh this is easy! Apple will be up eventually” and hit margin in a bad few minutes lol
Your logic is pretty good though, a company like apple likely will be up eventually. The key is to buy very small amounts of CFDs in relation to your total funds so you don’t go anywhere near margin, and with a bit of patience, you’ll be in profit. I’m all about taking small, frequent wins.
Haha yeah a large amount of money and only using a small amount of it at a time for small regular wins (and not being afraid to bail out instead of hopeless holding on) is porbbaly more the way to go.
I have the cfd account on practice now with just 1000 in its cash instead of the default 50k to play with and learn a bit.
Need to dive into some videos and tutorials to understand the graphs more.
Atm my focus is more just shifting the money I’ve had sat in the bank to the isa account to take advantage of the Corona dip but that seems over for much of the USA stocks
That’s a good approach. Practice with a realistic budget.
Watch the instruments that take you’re fancy and be patient. It’s ok to do nothing.
Personally I like to focus on specific instruments. When something is in a cycle that ‘interests me’ (i.e. I think I can to some degree predict it’s behaviour), I concentrate on that, thus focusing my funds & brain power.
Don’t forget to go into the settings and enable regular / retail leverage to make it more realistic. By default the practice account is in pro mode with a leverage of 500 or something crazy like that.
I’ve never seen t212 try to sell me anything tbf thier marketing stuff for the isa/invest was all very sensible long term boring stuff not the get rich quick style other trading apps like to use.
Made me feel more confident using them for the isa as it just seemed more realistic. A investing acount with out 11 pound per transaction fee and a nice simple interface, what more could you want
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