CFD Trading question

⚖ Active trading
1

Quick question to the CFD Traders here.

I’m solely ISA trading right now, doing comfortably so far, but the CFD side seems interesting.

The question I have though, is what forms of trading do you all take when using CFD?
SWAPS pretty much kill profits if your trades are open for a long period of time, and no scalping can be practiced (multiple trades under 5 mins).
So how are you making your money work for you?

Invest account or ISA, you have the option of buy and hold without incurring SWAPS, so where is the edge when trading CFD’s?
I know T212 gets paid by CFD, so i’m aware it’s a tricky one to win at.

Thoughts everyone?

2

I mainly trade US30 (Dow Jones), swaps is a few eurocents per day. Profits are much bigger. Sometimes I trade it for an hour, or sometimes just leave it go with a trailing stop.

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3

Last trade for example gave me enough profit:

Profit: € 36.84 (closed last night while hitting trailing stop)
Interest: € 2.04 (28/05 until 04/06)

4

Nice. @chantal
Thanks for the follow up, it’s good to see some figures to work out decent ranges/position sizes that I should be trading etc.

Definitely practice mode for me for a bit.

If your ok mentioning, or PM me if that’s better, what sizes and ranges was that trade on?

5

How much did you put on the trade to get €36 profit?

6

0.1 size for US30. I think blocked margin was about €114.

I started with €50 during Covid-19 crash. I doubled it a few times within a few weeks :stuck_out_tongue:

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7

Nice one!

How can you tell how much the margin was? I can’t find that info in my reports section.

8

When I open a position I keep in mind that I don’t want to use all my available margin. When you enter your trade details, you can see your margin:

Schermafbeelding 2020-06-04 om 15.03.02

When the market turns against you for sometime (I don’t use stop loss), you won’t hit a margin call immediately.

1 Like
9

I’ve tried to teach myself how to understand CFD and options selling. However it seems different on trading 212 app when CFD trading.
Here is a screenshot of my recent trade.
Does it look like a good deal?
Have I done it right?
I’m going in blind here and would really appreciate some advice, or just a tip

Screenshot_2020-06-07-17-13-06-786_com.avuscapital.trading212
Screenshot_2020-06-07-17-13-06-786_com.avuscapital.trading2121080×2246 156 KB

10

Hi @Matt1,

I would wait until the market is open. I only use CFDs with market orders to open a position. You are trading futures and things can change quickly based on external factors.

A good example was Friday afternoon. In the US unemployment was published and it was better than expected. US30 went up almost immediately. I opened a BUY position using market order and after having a good profit I set a trailing stop and let it run.

11

Thats Great, thanks.

Also, when you set the price before you buy, what are you doing?

Are you saying what price the stock will be or is it something else?

I’m so confused. I’m sorry.

12

If you do a market order, you just choose the quantity and buy/sell at the current price. Depends on your strategy. If you would trade CFDs for stocks and you are waiting for a breakout on the chart, you can set a limit order in advance.

Since I trade mainly US30 (Dow Jones) I use market orders only.