What is Leverage in Trading? | CFD Leverage | IG AU
What is Leverage in Trading? | CFD Leverage | IG AU
How Leverage Works With CFDs - CFD Spy - Online Trading
What is Leverage? | CFDs | CFD Trading Singapore | Phillip CFD
What is Leverage in Trading? | Calculate Leverage & Margin
Leverage trading: how does leverage trading work?
The comedy how I lost all my money in two hours
I'm trading for 11 months with pretty good success. I never traded metals and forex before, just stocks. Today when gold started to consolidate at the last hour, I decided to scalp short it with a large amount, so I opened 100 lots. I haven't realised, in forex 100 (lots) doesn't mean "100 pcs", because I used to stocks and I went full retard without knowledge. Seconds later, I realised it means 10 million dollars (1 lot = 100.000, and I had 500x leverage). It moved up a bit and immediately I was down £4000. I scared as fuck and rather than closing the position quickly I hoped maybe I could close break even. The market closed, and I waited for the Asian session. The gold popped like never before, and I lost all my life savings (£55000) in less than two hours. (including the 1-hour break between sessions). If I count that I lost all my earnings as well, I lost around £85000. Here is the margin call https://imgur.com/a/XY5m4ZA https://imgur.com/a/VSgmCSs https://imgur.com/pRWl5g9 IC Markets closed my position partially in every 1-2 minutes until I shut it myself at £35. You know the rest of the story. I'm depressed, crying and shouting with myself. Yes, I know I was stupid, thanks. I just wanted to share this with you. Edit: WOW THANK YOU, GUYS! I haven't expected this, but you help me. Many of you asked the same questions, I answer it here: - I live in Europe, and we usually trade CFD's, not futures. - Currency in GBP. - As you can see, this account made on IC Markets. They not just allowing you a 500x leverage, it's the default. - You can ask me why I went against the market. Because gold is way oversold? Because I expected institutions would sell their shares before gold is hitting £2000, leaving retails hanging there. Also, as I said, I wanted to scalp, not riding the gold all the way down. If I had a loss of £100, I would close the position immediately. But when I saw the £4000, my heart is stopped, and my brain just freezes. - I went for a revenge trade with my last £2k, and I don't have to say what happened. I uninstalled the app, and I give up trading for a while. - Again, in the past months, I was cautious, I lost a significant sum in March, but I managed to recover. Made consistent gains, always with SL. This is just an example of how easy is to fuck up everything you did. - I didn't come here for some shiny digital medals. I can't tell about my losses to anyone who I know in real life. I would make a fool of myself. - Anyone who attacking me that it is a scam. Well, think what you want. I feel terrible and the last thing is to answer all the messages saying "You fucking karma whore". I don't give a shit about karma.
Plain english warning about CFD trading, just something I wish someone had told me
tl;dr - trading CFD's is the equivalent of drag racing your drunk mate down the freeway into oncoming traffic. No self respecting adult would bother with them, CFD's are for cocaine-snorting thrill-seeking morons (like me apparently) who have no respect for risk management. Don't gamble with your savings. What are CFDs CFD's are 'Contracts for Difference'. Very simply, if you have a trading account with the right permissions you can trade in CFD's. Why are they dangerous Because say you trade $250, on a normal trade (ie stocks etc) if the price falls by 10% you lose $25, which sucks but isn't world ending. CFD's are NOT like that - they are 'leveraged' which just means that if you put up $50 your exposure is many many many many times larger than that EXAMPLE You buy 50 contracts on a stock that is trading at $100 a share.The stock then drops $10 in value.Your exposure is (50 * 100) = $5,000 BUT because your 'margin' is only 5% of that, the initial amount you put up is a mere $250. So to illustrate: Stock Trading Initial Investment - $250 Value drop - 10% Loss - $25 CFD Trading Initial investment - $250 Value drop - 10% Loss - $5,000 Closing remarks These things are illegal in the US for a good reason. CFD's are for suckers, don't listen to anything that you hear to the contrary. EU regulators say that 76% of CFD accounts lose money. Let me say that again, 76% of these things lose $&*#ing money. If the odds at the casino were 1:4 there is no fkn way anybody would go. When you trade CFD's you are essentially just gambling but with WAY WAY worse odds.Cited: https://www.iexpats.com/76-of-cfd-traders-lose-money-on-their-deals/ You can't make long investments with CFD's, they aren't a long-term strategy and they are not part of ANY investment strategy with a reasonable risk profile. Please don't make the mistake I did and get sucked into trading them, it's stressful as hell and it is pure bravado driven bullshit. Stay safe out there folks, times are nuts Edit 1: Formatting got stuffed up
First day trading on CFD with real money - How my day went
Hey guys, So I wanted to share my experience on CFD since it was something that was kinda scary to me. I finally put in 1000$ on my CFD account this morning. Before that I was training on demo mode and my strategy was working pretty well. MY STRATEGY: So I'm not familiar with leverage yet so I started asking myself what would be the way that I'm the most comfortable trading with leverage. I started looking for a stock that consistently grew since even a 1% a day rise could be good with leverage. That's when I realized that trading with an ETF could work. So I started looking at the S&P 500 and running the numbers. In the last year, on average, there is a a 2,47$ gap between the low and the close of SPY. So I though that if I could figure out the low each day, buy in and sell at the end of the day, I would consistently make money. After 1 week in the demo account, with a 10k practice amount, it worked 4/5 times giving me +300$. MY FIRST DAY: Today was Powell's speech. Basically he didn't say anything new. So the bull trend had no reason to stop today. 9h30: I monitor the opening of the S&P 500. It starts with a slight dip. Unusual since most the time, there is a buy-in at open. But since there wasn't a sell-off at the previous close, I'm thinking it's nothing too alarming. 10h: first dip. I'm hesitant. The last few days the first dip was followed by a deeper one around 11h. 11h: Still no dip. It even hits new highs. I'm starting to rethink my plan. Just the day before, the S&P 500 ran up all day with practically no dips. Then I notice a trend: the price seems to "hug" the EMA 20. I wait for the price to drop under the EMA 20 and decide to jump in with 14 shares. https://preview.redd.it/9qp5q476flj51.png?width=939&format=png&auto=webp&s=5e96a03713169869cf1a18badac5246e7af26102 Well that didn't go as planned. The price kept running down, further and further from the EMA. At that point I made a minor mistake by not jumping out when my plan didn't go as expected. I was lucky enough to hit a break-even price and jumped out of the trade at 0. Scary. I decide to take a little break to clear my mind and come back 30 minutes later. SECOND TRADE: At this point I realize the price is breaking a resistance that I had noticed earlier (the day's high). I think it's a good signal for a significant break out towards higher highs. https://preview.redd.it/6v6j5obxflj51.png?width=1312&format=png&auto=webp&s=8bef020f8689c862478e1bb2d50e0ef5e8e66cb8 Well I was wrong again. The price goes down, and down, and down. Luckily, I had taken a rather small position of 2 shares since I was kinda shook by my first unsuccessful trade. At this point I didn't really know what to do other than watch the price run down. I decide to buy positions on the way down. 2 shares each time during the downward trend (circled in black): https://preview.redd.it/lebrwuk2hlj51.png?width=1312&format=png&auto=webp&s=50dee1eca7c2fc543453daa2ff29722ee34c6caf The SPY keeps going down, and I nearly have no more money. My live result is -20$ and I'm starting to think that I will keep the positions open over night and that tomorrow I might get lucky. At this point I'm starting to get a better idea of the support and resistances of the day. I figure if the price goes bellow the day's low, then I would have to accept the loss and sell. But then 1pm come along and we finally get a nice bounce. I'm up +4$. I sell all my positions and call it a day. The day is not over yet when I'm writing this but I obviously could have sold later. In hindsight, if I had just followed my initial plan (buy at open, or at day's low, sell at close) I would have done much better (maybe 10$ profit?). https://preview.redd.it/6yqr1boijlj51.png?width=1280&format=png&auto=webp&s=a025e9d56fafdc16616bfc489fcd1fec34cadf70 WHAT I LEARNED: -However well you performed with fake money, I will be completely different with real money. -Any plan/strategy you had before hand will disappear once the market opens. -You will make many mistakes. You can't just watch YT videos on trading signals and apply them. No matter what the YT gurus tell you, It's not easy to day trade. -Spreads kill your profits. When I bough in, there was a 0.25$ difference with the actual price and when I sold it was 0.10$! Maybe the spread decreases with low volatility? I hope somebody will find some useful info here! I will answer questions if you have any. If people want to give me advice, be welcome! I'm a beginner!
LONG TIME lurker, first time posting. Profitable trader here wondering how I’d give something back to this community without saying, “buy x company at $1 and sell at $1.2”, or giving up the secrets of my strategy. I’m from a banking/arbitrage trading/risk analysis family...would anyone be interested in information around those areas in regard to day-trading? EDIT: I’ll have a bit of a write up tomorrow and stick it up here. Thinking I’ll post something on the arbitrage topic first as that’s probably the most interesting/provocative. EDIT2: Alright, here goes. Instead of an arbitrage specific write up I want to talk about something else first—inspired by TheLoneComic’s comment. This is just what came out when I sat down to write. If it’s well received I’ll keep writing. This will probably be most beneficial to beginner traders with small capital and individuals struggling with stop losses...I can also go into more detail on this post, I’m typing this up within the time frame I have. Arbitrage traders (also my background) don’t think the world of day traders as individuals—or at least ALL the traders I know don’t. Saying that, the trading world as a whole LOVE day-traders. The brokers do as they get commissions and everyone else does as 80-90% of you lose your money to the swirling pool of money in the market. This dislike or “looking down the nose” isn’t all warranted, I’ll admit, but the trading world has to be filled with many losers—many of whom, unfortunately, are just average Joes or Janes trying to free themselves from the wage-cage. This is a noble pursuit but most people shouldn’t, or don’t, require leverage to be profitable and are in fact endangering their capital by doing so—not to mention cutting their career short. This probably the most mind-boggling aspect of the typical day-trader. The term, “trade within your means” springs to mind. The main point of contention within my arbitrage world is those hung up in the world of technical analysis and how reliable it actually is. Keep in mind these are firms with super-computers that execute and exit trades in the blink of an eye, searching all day across entire sectors for price disparity. There’s little room for human error and emotion...Arbitrage companies are incredibly profitable for this reason. I don’t really want to get in a debate over TA as I know how emotionally invested people are in it. I do want to get beginners to rethink how they buy and sell. I will say this, broadly speaking, TA subscribers tend to mistake their success on patterns when the real winner is discipline and strategy—that’s why I like to read this sub. if you don’t have these you will lose...the same is true for all areas of business. We could easily transplant these people into any industry and I’m sure they’d thrive. I believe there’s a missing link in the arsenal of the day-trader. Particularly for the beginner. And this missing link is combining Share Trading and CFD trading. This is a powerful stepping stone for those who want to wade into the rough ocean of CFD. Especially because it will help you better understand risk management and price movement. I’d like to propose a strategy to the 80-90% of strugglers and losers—not the disciplined with sound strategy as they don’t need much help. I believe this is a far better way to enter into the world of trading and will give you a better understanding of leverage and when/how to better utilise it. First, we’re going to start trading within our means, as protecting our capital is vital. We’re going to do this by combining Share trading and CFD trading. Specifically, we need to look for markets wherein there’s no restrictions on trading both CFD and buying shares outright. This means you’ll also need a broker that allows you to do both. Next step is your strategy, PLEASE NOTE, you’re still going to develop your own strategy and work on your discipline so spend plenty of time on this...the only thing that is going to change is how you BUY/SELL. Don’t mean to do this to you all but I’ll have to leave this one as a to be continued...I’ve run out of time and will continue later today should there still be interest. EDIT 3: I’ve got another short period here to continue on. I would like to share what I believe is the true value in leveraging for a day-trader and I’ll tie it in to where I left off. My algorithm will spit out roughly 20 strong trades a day across many different markets. Some of these trades will require being open for several days, weeks, or even a month (I know, this takes them outside the realm of a “day trade”). Herein lies a risk of capital being tied up in multiple long term holds and open positions. Two things here on why I like to actually use buying stocks as a DT strategy: brokers usually charge you a fee to leave a position open over multiple days...this cost adds up—especially if like me you set a price target and don’t exit a trade until it is hit. And secondly, clear stop loss positions are not always clear. So my solution was to just BUY shares of the stock, commodity, or ETFs if I’d projected the trade to be longer than a day or if I couldn’t find a solid stop-loss point (please note my average position size is $15,000-$20,000 per trade so I don’t need the leverage to make money). I could write a whole essay on hedging, as it can be very powerful when combined with this method correctly. It’s roll to play is so important that I will have to divulge more at some point...maybe in a future post. I use leverage mostly to hedge and play some short game while I’ve got my longer term, bigger plays in the ground. Leverage is not a method I use for playing large positions for quick money. I think this is a far better attitude for beginners as the emphasis is always going to be on price targets and exit points, risk management, and money management/allocation. More to come. EDIT 4: To summarise my viewpoint, those seeking to enter the world of trading should first learn to share trade and hedge. Learn to walk before you run. Not only will you gain better experience, be more controlled and methodical, be less frustrated and have a lower chance of bottoming your account, you’ll also have another weapon in your arsenal for when you decide to use leverage. Learning this skill will also allow you to understand when you can increase your stake/risk. Some parts of this have been left a bit vague due to either time constraints or they require a thread/discussion of their own for further explanation. If there is anything I need to dive into a bit deeper please let me know. I’d like to post another thread on hedging and a “turning $1000 into $2000” play-by-play if such things are allowed? Also thinking about posting some of my algorithm’s picks, price entry, and price target. I like discussing such things but don’t have a very wide circle outside of work to share with at the moment.
Beating the UK brokerage via true arbitrage - £8k -> £98k ($128k) since 21st April
Alright you American autists, here's a gains post from the UK across the pond - listen up because it's pretty incredible, managed to screw over our broker to turn ~£8k into £98k / $128k USD by reading the small print, true u/fuzzyblankeet style. https://preview.redd.it/9mlup18v0q951.png?width=343&format=png&auto=webp&s=aea1393d304d16063d62d54d30cc5be9b23d937a Unfortunately, we don't have options trading, commission free robinhood which crashes, or any other US based degeneracy, but instead we British chaps can trade "CFDs" ie. 'contracts-for-difference', which are essentially naked long / short positions with a 10-20% margin (5-10x leveraged), a 'holding cost' and you could theoretically lose more than your initial margin - sounds like true wallstreetbets autism, right? Well grab a lite beer (or whatever you lite alcoholic chaps drink over there) and strap in for this stuff: So, CMC Markets, a UK based CFD brokerage, wanted to create a West Texas Intermediate Crude Oil 'Spot' product, despite WTI contracts trading in specific monthly expirations which can thus have severe contango effects (as all of you $USO call holders who got screwed know) - this was just a product called "Crude Oil West Texas - Cash", and was pegged to the nearest front-month, but had no expiry date, only a specific holding cost -> already a degenerate idea from their part. So in early April, just before when the WTI May-20 expiry contract 'rolled' at **negative** $-37, the "WTI Cash" was trading at $15 at the time, but the *next* month June-20 expiry was still $30+ we (I am co-running an account with an ex-Goldman colleague of mine) simultaneously entered into a long position on the "WTI - Cash" product, and went short on the "WTI Jun-20 expiry", a pure convergence play. Sure enough, the June-20 tanked the following week, and we made over £35k, realised profits. But meanwhile the May-20 also tanked, and we were down £28k. But rather than realise this loss, we figured we could just hold it until Oil prices recover, and profit on both legs of the trade. However, CMC Markets suddenly realised they are going to lose a lot of money with negative oil prices (Interactive Brokers lost $104m, also retards), so they screwed everyone holding the "WTI - Cash" product trading at $8 at the time, and pegged it to the December 2020 expiry trading at $30, with a 'discount factor' to catch up between the two. https://preview.redd.it/zjjzyahx0q951.png?width=517&format=png&auto=webp&s=9523bab878f06702133631f12c1109081f299f65 Now fellow autists, read the above email and try to figure out what the pure arbitrage is. CMC markets will charge us a 0.61% **per day** holding cost (calculated as the 10x levered value of whatever original margin you put up, so in our case £8k*10x=£80k*0.61% = £500 per day, £1.5k on weekends for extra fun) on our open positions, but also "increase" the position value by 0.61% per day vs. the **previous day's** WTI - Cash value. Got it yet? No? Still retarded? Here's where maths really helps you make tendies:-> If your 'cost' is fixed at 0.61% of your original levered position, but your 'gains' are 0.61% of the previous day's position, then your gains will be ever increasing, whereas your costs are fixed. So we added some extra £££ (as much as we could justifiably put into a degenerate 10x levered CFD account) and tried to see if it works. Long story short, it does. At this point in July we were making **over £1k per day on a £8k initial position*\* regardless where the WTI Dec-20 fwd moved. Unfortunately, eventually CMC markets realised what utter retards they were, and closed down the arbitrage loophole, applying the holding costs to the previous day's value. But not before we turned £8k into £98k, less holding costs. https://preview.redd.it/uh0f8knz0q951.png?width=553&format=png&auto=webp&s=c7e629f72de5aeb4e837ccef44ecae708f058bee Long story short, puts on $CMCX they're total retards, and given what a startup robinhood / other brokerages are, never assume that only they are the ones taking your tendies away, sometimes you can turn the tables on them!
With Bitcoin Suddenly Surging, Canaan Stock Is Also Going Up Today
CFD providers are reporting a significant increase in new clients because of Covid-19. Whilst most seasoned traders understand the difference between DMA (Direct Market Access) and Market Maker pricing, I'm sure many have opened accounts with the likes of CMC Markets, City Index and IG Markets without reading the PDS (Product Disclosure Statement). A CFD or Contract for Difference is an agreement between you and your provider to exchange the difference in price of an asset between when the contract is opened and when it is closed. The CFD product is simple to understand and offers considerable amounts of leverage enabling traders to take out positions much larger than if you purchased the underlying product. Now in the beginning, CFD providers charged a fee for opening and closing a position in exactly the same way a broker would charge in order to buy and sell ordinary equities. If you wanted access to live prices, you needed to pay an exchange fee. As CFDs became more popular, CFD providers began innovating the product in order to generate profit. The providers decided to enter into agreements with real banks and financial institutions in order to hedge their exposure and make more money by taking the opposite position to what was being traded. This still wasn't enough for CFD providers who again changed the product by charging a spread (the difference between the buy price and sell price). The major banks / financial institutions who partnered with the CFD provider in order to hedge were not charged a spread. This, again, was still not enough for many providers. CFD providers began the unthinkable and decided to charge their own price for the underlying instrument! This meant that it was now possible for providers to not only take the opposite sides of the buy / sell price using liquidity partners, but also adjust the price of the CFD to any amount they want. It was now possible to increase the price of a CFD trade to a level high / low enough to hit your stop losses before adjusting it back to whatever the market price was. I would consider the above to constitute fraud if it wasn't so clearly described in their Product Disclosure Statement (PDS), a document that obviously many people do not read. DMA CFDs DMA (Direct Market Access) CFD providers offer a much, much better product. Upon placing an order, the provider typically places the same order into the underlying market. The prices quoted are the same as the underlying and you can even see your trade in the order book. Most DMA CFD providers charge:
Exchange Data Fee
A fee to buy / sell
In my opinion, I would much rather pay the fees quoted if it meant I was actually trading the financial markets instead of a price that can be changed in order to close out my positions at a loss whenever the computers at CMC feel like it. DMA CFD Providers Some DMA CFD providers include: FP Markets Pepperstone IG (DMA)
Is the current situation always the same with low returns, long waiting times and still low returns, even below inflation? In addition to this, the bank takes a brokerage fee and other expenses from your investment, which means that the profit may not be even small. The value of your money and your investment will not grow as they would. However, for active investors, there is a solution to this, namely FXGM. It significantly increases the return on investment. Are you familiar with what leverage means? What about CFD products? Nowadays, you can also make big trades even if you don’t have a lot of capital to invest yet. FXGM has a lot of CFD products that make it easy to trade for changes in the prices of stocks or even metals. At best, you can make big wins that can be many tens of times as big as if you were just doing regular stock trading.
Does anyone else think trading with leverage is likely to get banned in Europe soon?
To be clear, I'm talking about CFD brokers like eToro or plus500 that allow anyone to trade with up to 20/30:1 leverage I feel I am just seeing too many stories of people who had no idea what they are doing getting wiped out. If you read reviews for these brokers it's just page after page of horror stories, and it's clear these cases have skyrocketed since Covid In addition, a lot of these brokers are actively encouraging their customers to lose money. For example, I have a friend who wanted to take advantage of the low oil price. He opened an account with a broker called ForTrade. They immediately gave him a personal mentor. He made a deposit of 10,000 EUR and the mentor basically encouraged him to gamble most of that away within days. What they do is give you 'tutoring' where they tell you to look for some bull/bear flag or another on a chart and then just pile in when you see it - that's it. Obviously if you do this with an oversized position and no exit point, you're going to get cleaned up pretty quickly. The broker knows this At the same time, I signed up for a demo account, and they then called me repeatedly to encourage me to switch to real money, and sent me brochures about opportunities (they love pushing you to commodities like oil/metals because they are so hard to trade). I told them I didn't want any help but still they kept calling. When I told them firmly to leave me alone, they just said, 'Ok, if you're not interested in making money, we can't help you'. I mean, lol, but at the same time you really shouldn't be so pushy So we have a situation where people are blowing a good chunk of their retirement funds on trading (thinking it's investing), and a horde of brokers actively encouraging them to do so Doesn't seem sustainable to me I would hope CFDs with leverage are not banned completely, and that people who can prove they are experienced with them will continue to be able to do so, but also that these instruments are just too dangerous for most people to be able to use
Developing a new strategy, can I please get some opinions from people familiar with VIX hedges
Intro: I trade CFDs on a MM model, as proof I am not a CFD noob that will destroy my account here is my equity graph with X as trade number and Y as performance in %. The period of obvious change is when I developed my current strategy. I was leveraged 8X long in the March crash and 2X in this weeks one, so my risk control has worked so far, although I took a massive hit to unrealised profits. I have never used a VIX hedge so if anyone has experience with them any help would be great. https://imgur.com/a/xvoGXtJ My new plan: The whole idea is based upon keeping it as simple as possible, whats more simple than S&P longs. In essence the trade is a pyramiding BTFD on SPY with max leverage set at 20X and a VIX hedge. The Products: -CFD on the S&P spot price, there is no expiry or rollover. There is however a holding cost of 2.69%PA paid at 1700h NY time. -CFD on VIX futures contract, furthest out. No holding cost, but expiry will be between 1-2 months depending on entry point. Position Sizing: -Entry 1: Long S&P at 1X account value, Long VIX at 1/4 S&P trade value. The 1/4 comes from this information I found "According to the CBOE Website, on average, the VIX rise 16.8% on days when the S&P 500 index drops 3% or more. This means that if the SPX move down by 10%, the VIX can potentially shoot up by 56%. To play it safe, the fund manager assumes that the VIX will rise by only 40% when the SPX drops by 10%." https://www.theoptionsguide.com/portfolio-hedging-using-vix-calls.aspx#:~:text=To%20implement%20such%20a%20hedge,known%20as%20the%20reverse%20collar. -Entry 2: Repeat of entry 1 which is pyramided on top of it. This makes the trade 2X, all subsequent entries will add 1 the leverage amount. Risk Management: -Upon entry 2 the 'take profit stop' of entry 1 and the 'stop loss' of entry 2 will be set to a position slightly above break even for the trade, including interest and VIX roll over losses. -Profit off VIX will be taken in event of a major crash that shuts down the main position. - In the event of VIX spike >50 VIX may be shorted at an equal level to the long that is open Entry 1 Rules: -VIX >28 -S&P retracing -S&P in uptrend as defined by HHHL in 4h chart -MACD has convergence between indicator line and price action (shows continued momentum) Subsequent Entry Rules: -As per entry 1 rules -Current position profit >5% of position base value, increasing by 2% for every extra entry Exit Rules: -If I hold a strong conviction the market will drop severely -If max leverage has been reached, close down some profitable positions to increase cash balance which in turn lowers leverage value. This will allow the strategy to continue to grow further. -Profit on VIX may be taken if: VIX is in profit, has a declining price, and contract expiry >2weeks. The hedge position will then be rolled onto new furthest contract. I will update this as the thread continues by strike though for removals and italics for admission
If you have been involved in online trading for some time, chances are you have used the MT5 software. Even if you are new to online trading, I am sure you have heard about MT5 from more experienced traders in your network. But the platform isn’t just popular for no reason. Both traders and brokers find it useful because:
It has impressive functionalities that you can’t get on any other platform
It is openly available to all brokers and traders.
However, that is not all there is to MT5. So this post will be looking at some exciting things about MetaTrader 5, including:
The types of account it offers
Basic terms every professional trader should know
Before we delve into highlighting the features, let’s look at what MetaTrader 5 really is. So what is MT5? MetaTrader is a multi-asset platform that offers traders the tools to trade forex, stocks, and futures. The first version of the software, MT4, was created in 2005 by MetaQuotes Software Corporation. The second version, MT5, was released in 2010 to offer more functionalities and better trading experience to users and brokers. With the history out of the way, let’s look at the features that make MT5 the software of choice for most brokers and traders. 5 features of MT5 that make it the market leader
Multi-asset trading platform
Automated trades to test trading strategies
Automated bots by experts
Hedging and netting allowed
21 time-frames — from minutes to years
The 3 types of MT5 accounts available on Deriv.com One of the things that have made MT5 very popular is its open-source nature. This has allowed different brokers to integrate it into their respective trading platform. But at Deriv.com, we didn’t just integrate MT5 into our platform. We blended the powerful functionalities of the MT5 with our experience as pioneers in the online trading industry and we call it — DMT5 an all-in-one forex and CFD trading platform. When you trade with DMT5, you have the option to choose from three different account types, each designed to appeal to traders with varying styles of trading and experience. The three account types are explained in the images below. Types of DMT5 account DMT5 Accounts It is worthy to note that synthetic indices are only available to Deriv.com traders and can be traded even on weekends. Another point to note is that while Deriv.com created the synthetic indices algorithm, the market mimics the real-world financial market. Lastly, let’s look at some of the terms that you should know if you want to succeed in online trading. Basic terms every professional trader should know 1. Leverage Leverage gives you the ability to trade a larger position using your existing capital. 2. Order execution There are two types of order execution: instant execution and market execution. Instant execution places your order at the price available at that time. Requotes are possible only if the price fluctuates by a lot before the execution of the order is completed. Market execution allows you to place an order at the broker’s price. The price is agreed upon in advance, there are no requotes. 3. Spread A ‘spread’ is the difference between the buy and sell prices. A fixed spread is subject to changes at the company’s absolute discretion, whereas a variable spread means that the spread is constantly changing. A fixed spread is not affected by market conditions, a variable spread depends on market conditions. 4. Commission Brokers usually charge a commission for each trade that is placed. Deriv.com, however, charges no commission across all account types, except cryptocurrencies. 5. Margin call Your account is placed under margin call when the funds in your account are unable to cover the leverage or margin requirement. To prevent a margin call from escalating to a stop out level, close any open positions, or deposit additional funds into your account. 6. Stop out level Your account will reach the stop out level where it will be unable to sustain any open positions if it has been under margin call for an extended period of time. This will lead to all pending orders being canceled and open positions being closed forcibly (also known as “forced liquidation”). 7. Cryptocurrency trading Indicates the availability of cryptocurrency trading on a particular account. These are the basic things you should know about MT5. If you are new to online trading, we highly recommend you read the following posts: https://medium.com/@derivdotcom/things-you-need-to-know-about-mt5-961b2665a4fb
Again within 24 hours of trying to work out a way to make this sustainable and workable for everyone I've noticed it's not worth the hassle to do so. It seems a lot of you expect everything for nothing. I'm afraid that is not going to work for me. Nothing I am doing is free for me, and if people do not want to pitch in the tiniest bit to help with that I can only conclude one of two things; 1 - The info is not worth $50 to you. In which case it is not worth my time writing it. 2 - People are ungrateful. In which case it is not worth my time writing it. If people were willing to meet me half way, I'd have went a lot further. People seem to want to stand where they are and shout over to me I'm a scammer for not bringing it all to their feet. That's a perspective. You can have it. I do not mind. But if this is your talk, I'll trade in silence. I'll also show you what happens with the "Scammy" info I was going to provide you for $50. In the week ahead I'll set up an account with a similar amount to the amount of money people seem to think it's egregious to ask for, and I'll run the same trades on this as will be in the trading plans shared in the proposed offer. I'll use recognised results tracking programs that will automatically verify and display the results. Build up phase: I'll start with currency trades. These are the lowest barrier to entry since I can trade micro lots and also have access to leverage. Currency trades should give me about 400 'pips' margin of error. Realistically, I should not need more than 40. I think SPX will be up 2 - 4% next week, this should give gains to on the Aussie against the Swiss (AUDCHF) - I'll go long AUDCHF. Margin up phase: After the currency trades I should have enough to trade SPX. I'll start to position short on SPX around 3080 and I'll take a first target of 2377. Given the right setups I'll add to my SPX short as prices are falling to bulk up the net take profit on the trade if it works. I'll trail my stops on the first trades to mke sure I'm not increasing my risk . Big up phase: By this time I should have enough margin to trade the Dow. Here I can make some real money. Around 21,000 I'll start to short the Dow and I'll be targeting 10,000. This trade should pay me somewhere in the region of $50,000 per traded lot. During the move I should be able to build up a position of at least 4 - 5 lots on the margin I have. Should be over $200,000 if it hits. Cash flow up phase: Once the drop has happened, I will begin to go long and do it in ways that will generate me daily income. I'll do this by transferring about $100K into options account and selling puts for 100 SPY. I'll also switch back to currency trades and I'll engage in what are known as "Carry trades", these will pay me every day I hold the trade based upon the "Swap". The best carry trades will depend upon what respective interest rates are at the time. Assuming things are similar (relatively) to how they currently are, I will be buying the Aussie, Kiwi and Turkish currencies and I'll be selling them against the dollar and Yen. This will be long AUDUSD, NZDUSD, AUDJPY, NZDJPY and short USDTRY. I'll allocate $50,000 to carry trades. I'll use the remaining money to hedge and offset risks/losses on my cash flow trades if that is needed, and if not I will use it to make similar trades but ones based upon a short time frame and geared towards risk:reward based profit rather than passive cash flow. I'll keep doing this until the Dow is back to around 17,000 - 18,000. Crash cash phase: For the next phase of the drop I will again switch to trading the Dow. This is where I can make most money. I might also allocate $100 - 200K to OTM puts, but since this can be a slower more steady crash it will make more sense to build a position in the CFD market on the Dow. Again my Dow trade should pay over $50,000 per lot. This time building up over 20 lots should be fairly easy. Cash flow decade phase: Once the market has crashed I will start to become a big options seller. i'll also engage in carry trades if interest rates are not all screwed up (Which is there are 'currency wars' they could be). Being able to be on the right side of a carry trade will determine if this is viable or not - and that has some variables that can not be known at this time. I'd love to be able to just short USDTRY, though. If it's viable. With options, I will be selling both put options and call options. I think once the crash has happened we will enter into a long term theta market last 10 - 15 years - this period is known as a 'Lost decade)'. I'll sell SPY puts for under the lows and I'll also sell SPY calls each time there is jumps in upside volatility. I'll be happy to sell SPY calls for 200 for literally years on end. By this time I should have more than $50. I'll update my swing plans either bi-weekly, weekly or monthly. Pending on how much free time I have. I'll edit this post to add in the results tracking material when I set it up. Update: Here's the tracking link. http://www.myfxbook.com/members/2020sBeasomething-for-nothing/6040046 I set the copy software to invert trades & the first trades went short AUDCHF rather than long. That puts me on quite a substantial losing start, but it should not matter. Might push the start of SPX trades back a week. Probably won't. Let me just show the value of what I've been trying to teach you.
Plus500 does one thing and it does it really well, CFD trading. It's super simple and easy to use website which is what attracts retail 'investors'. I put investors in quotes because CFD trading is not really investing, it's just complete gambling for 99% of amateurs who have no idea what they are doing. Until 2018 the regulations around it were very lax too, basically retail gamblers could leverage a lot to buy CFD's. Then in 2018 some trading body (can't remember who) put regulations on their european segment which made it so that retail gamblers could not leverage too much and would get stop losses and such UNLESS they were classed as a professional trader. So then this hurt plus500's revenues and profits a lot short term in 2018 as retail gamblers could not lose as much all of a sudden. However, long term this regulation is much better than the alternative which would have been to outright ban CFD trading which is why plus500 supports this regulation and has implemented it cross regions I think. In 2020 the australian regulators are talking about regulating CFD trading as well. However the australian segment makes up only 1/7 of total revenues so this shouldn't affect future revenues too much short term. So basically the big risk is regulation or outright banning which is why the market is making such a huge discount on this company. But the upside is plus500 is a cash machine with insane cash flows, little expenses, an addicted loyal gambling base, huge operating margins, huge amounts of insider buying recently. And the biggest upside of all is that plus500 dominates in periods of volatility because they make money off the spread of the bets. > Q1 2020 revenues up 487% to $316.6m compared to the same period last year, equivalent to 89% of FY 2019 revenues, resulting in EBITDA* of c. $231.6m for the quarter. They are going to have a record year due to COVID-19 and the market has hardly noticed, just a 20% gain since that insane upate here: https://www.londonstockexchange.com/exchange/news/market-news/market-news-detail/PLUS/14493925.html I bought this stock at £8 and I'm also buying tomorrow at £13.29 a ton. The relative multiples are extremely low and even a DCF valuation of pessimistic scenario's gives a huge 100%+ discount.
New to investing. Just starting out in the stock market. What are some good broker apps that you are able to see if you are trading using cfd. Currently using etoro and to avoid trading with cfd I use their virtual account to check if the thing I am planning to buy is a cfd or the stock itself as etoro labels the position as cfd. However there are too many stocks in etoro that are cfds namely the euro companies. Thus i am looking for an alternative for stocks especially for non american companies as american companies are mostly not cfds in etoro at least i have not seen one which is cfd when you are on 1x leverage. Thanks for any input.
https://preview.redd.it/0itz6rhbxs951.jpg?width=2400&format=pjpg&auto=webp&s=ee51217e32d7e10f5510e86de00653161108f35a Curious to know about cryptocurrency trading? Have you ever wondered how to do cryptocurrency trading? If yes, then you have landed on the right page. This article illustrates the concept of cryptocurrency trading. Cryptocurrencies can be sold and bought through exchanges. Bitcoin is one of the most popular cryptocurrencies. There is no doubt that the demand for bitcoin certification is expanding day by day. The value of cryptocurrency is rising every day. The market sector of cryptocurrency is decentralized. Hence, there is no central authority like the government. The transactions of cryptocurrency are not managed by any financial institutions or banks. Cryptos operates across a network of systems. What is Cryptocurrency? A cryptocurrency is an encrypted form of decentralized digital money that can be transferred between individuals. It doesn’t exist as a physical object. This currency exists only in digital form. The nature of cryptocurrencies is volatile. They are totally unstable currencies. Each and every cryptocurrency is identified and coded based on complicated digital algorithms. It is basically a digital coin designed to do virtual transactions. Blockchain is the technology behind cryptocurrency. Blockchain technology is a digitally recorded register of data. Top blockchain certifications in cryptocurrency will provide you deep insight into the cryptocurrency sector. What is Cryptocurrency Trading? Crypto training permits traders to buy cryptocurrency. The trading of crypto is the action of guessing on cryptocurrency cost movements through selling/buying coins or CFD trading accounts. CFD trading doesn’t take ownership of the coins. You need to put a small amount of deposit to gain exposure to the crypto market. You can sell or buy cryptocurrency through an exchange. A Certified Cryptocurrency Trader is a certified individual who understands the detailed working process of cryptocurrency trading. Basic Tips For Cryptocurrency Trading The market of cryptocurrency transforms very fast. Several new cryptocurrencies are born and others disappear. There are several different kinds of factors that push the cost of cryptocurrencies down or up. You should definitely consider the following points before you start trading Ethereum, Bitcoin or any other cryptocurrency. Let’s discuss some of the basic tips for trading cryptocurrency · The first and basic rule for cryptocurrency trading is to sell high and buy low · The first thing you should keep in mind while doing crypto trading is that the cost is exceptionally volatile · The two important factors to be examined before crypto tradings are fundamental analysis and technical analysis · The fundamental analysis considers the vulnerability of the crypto market sector · The technical analysis consist of research for financial assets · It is very crucial to follow news on digital currency. This will further help to select the best cryptocurrency · Select your trading platform based on leverage available, currencies available, minimum investment and trading features How To Get Started Trading Cryptocurrency? Cryptocurrencies are traded 24/7. The trading process of cryptocurrency is the same as that of fiat money except for the fact that there are Ethereum or Bitcoin instead of US dollars. Cryptocurrencies permit traders to modify their portfolio of investment. The price of cryptocurrency is analyzed by market supply, demand and sentiment. Let’s discuss steps of how to get started crypto trading
The first step is to select and research the selected platform for trading. You will require more time to learn the working process of the selected platform. Usually, the brokers provide their own trading platform
The next step is to think about is this the right time to do trading? The sector of crypto moves high and low. You will have to do deep research before getting started for crypto trading. The first rule for cryptocurrency trading is to buy low and sell high
The third step is to learn a trade. The best method to grasp how to trade is to actually do trade. Once you have explored all the concepts behind crypto trading then you will get in there. Just remember to set your limits first before purchasing some cryptocurrency
Final words We hope that we provide you the answers you were looking for. The market of cryptocurrency is constantly increasing and provides several opportunities for traders. You should be very careful while doing cryptocurrency trading. Crypto trading is not a game. The real money is involved in crypto trading. If you want to explore more about masters in cryptocurrencies traders, then you can check out the website of Blockchain Council.
When it comes to trading cryptocurrencies, you have to speculate whether the market you have chosen will go up or down in value. And the interesting thing is that you never own the digital asset. Actually, the trading is done with derivative products like CFDs. Let's take a look at the benefits of trading crypto currencies. Read on to find out more. Volatility While the cryptocurrency is a new market, it's quite volatile because of the short-lived speculative interest. The price of bitcoin dropped to $5851 from $19,378 in 2018, in just one year. However, the value of other digital currencies is quite stable, which is good news. What makes this world so exciting is the volatility of the value of crypto currency. The price movements offer a lot of opportunities for traders. However, this comes with a lot of risk as well. Therefore, if you decide on exploring the market, just make sure you do your research and put together a risk management strategy. Business Hours Typically, the market is open for trade 24/7 because it is not regulated by any government. Moreover, the transactions are done between buyers and sellers across the world. There may be short downtimes when the infrastructural updates take place. Improved Liquidity Liquidity refers to how quickly a digital currency can be sold for cash. This feature is important as it allows quicker transaction times, better accuracy and better pricing. Generally, the market is kind of illiquid as the financial transactions happen across different exchanges. Therefore, small trades can bring large changes in the prices. Leveraged Exposure Since CFD trading is considered a leveraged product, you can open a position on what we call "margin". In this case, the value of the deposit is a fraction of the trade value. So, you can enjoy a great exposure to the market without investing a lot of money. The loss or profit will reflect the value of the position at the time of its closure. Therefore, if you trade on margin, you can earn huge profits by investing a small amount of money. However, it also amplifies losses that may exceed your deposit on a trade. Therefore, make sure you take into account the total value of the position prior to investing in CFDs. Also, it's important to ensure that you are following a solid risk management strategy, which should involve proper limits and stops. Quick Account Opening If you want to buy crypto currencies, make sure you do so through an exchange. All you need to do is sign up for an exchange account and keep the currency in your wallet. Keep in mind that this process may be restrictive and take a good deal of time and effort. However, once the account is created, the rest of the process will be quite smooth and free of complications.
long time lurker, i'm thinking of writing a book on the bad advice given here on this sub... something like "how to make the least from the rest of your investment returns". all quotes are virtually verbatim. For any new folks, let it serve as a guide that if you see someone saying it, you can rest assured knowing that they shouldn't be giving out advice. "I developed my own trading strategy" "I'm looking for a developer to implement my strategy" "I like X because of the 6% dividend yield" "The price of X has gone down, now is a really good time to buy X as its can't be long before it rallies... or should i buy Y instead" "I sold after the dip and i'm waiting for a good opportunity to buy in" "I'm 70% cash at the moment" "The oil price is low, how can i trade oil... how can i take physical delivery of oil... i read about 'oil cash and carry trade' how do i... yes thanks i read about contango on investopedia, but what is it?" "I'm looking to take advantage of the situation, where can I buy options" aka "where can i trade a derivative i know basically nothing about, in a mathematically zero-sum game market place where i'm totally out-matched... because well, i saw that prices fell, and its not obvious to me that when prices fall, volatility goes up, and as such premiums charged by option writers go up too, but that doesn't matter because i want to lose some money by buying deep OTM lottery tickets" "At SAXO / IG you can trade OTC products, warrants, ETPs, CFD options like i do, but i don't really understand enough to not know why they are not options... (but i'm going to recommend it to you anyway)." "3x leverage means 3x the return... now tell me more about rebalancing tracking error, why should i care... restrike event? i'll forget about that later)" "You can sign up to trade complex products, its easy, you just skim read the professional investor declaration and hit accept... no i've never read a Fund/ETP/ETN prospectus, why?" "I attended/teach/sell an online trading course" "gold is a good hedge, X% of my portfolio is in gold" "I trade about 2-3 per week" "Penny stocks" "AIM stocks" "My bitcoin investment"
INVESTING IN BITCOIN IS ONE OF THE GREATEST INVESTMENT OPPORTUNITY IN RECENT TIMES, WITH BITCOIN GOING UP BY THE DAY AND EXPECTED TO HAVE MORE VALUE AFTER THE GLOBAL PANDEMIC, EVERY INVESTOR SHOULD REALLY CONSIDER INVESTING IN BITCOIN BECAUSE IF INVESTED WELL CAN GENERATE A LOT OF ROI(RETURN ON INVESTMENT). THE GLOBAL PANDEMIC HAS PROVED THE IMPORTANCE OF OWNING DIGITAL CURRENCIES LIKE BITCOIN BECAUSE WHEN EVERY OTHER CURRENCY CRASHED DUE TO THE PANDEMIC, BITCOIN WAS WAXING STRONGER BY THE DAY AND ITS VALUE KEEPS APPRECIATING. WE ARE A CRYPTO CURRENCY TRADING COMPANY KNOWN AS TRADAX FX MARKET. TRADAXFXMARKET LTD IS A CYPRIOT INVESTMENT FIRM (CIF), PROVIDING ONLINE TRADING SERVICES ON FOREX AND CFDS. AS AN STP BROKER, WE APPLY MARKET EXECUTION, WHICH MEANS THAT OUR CLIENTS CAN EXPECT ORDER EXECUTION WITH NO REJECTIONS AND NO RE-QUOTES. TRADAXFXMARKET LDT OFFERS UNPARALLELED TRADING CONDITIONS DESIGNED TO MEET ALL REALISTIC EXPECTATIONS FROM BOTH PROFESSIONAL AND LESS EXPERIENCED TRADERS. FROM ITS HEADQUARTERS IN LIMASSOL TRADAXFXMARKET HAS CREATED A SECURE TRADING NETWORK CONSISTING OF HIGH END TRADING TECHNOLOGY AND PRESTIGIOUS PARTNERSHIPS, ALL OF WHICH ENABLES TRADAXFXMARKET TO BE A SECURE, TRANSPARENT AND RELIABLE BROKER. TRADAXFXMARKET OFFERS EXCELLENT TRADING CONDITIONS ALLOWING MORE FLEXIBLE TRADING, INCLUDING THE FOLLOWING ADVANTAGES.
WE USE MARKET EXECUTION IN A REAL TIME, WHICH MEANS THAT ALL YOUR QUOTES ARE EXECUTED AT THE BEST AVAILABLE PRICE AND YOU DO NOT HAVE TO WORRY ABOUT RE-QUOTES OR REJECTIONS OF YOUR ORDERS
WE OFFER A FLEXIBLE LEVERAGE, BASED ON YOUR KNOWLEDGE AND EXPERIENCE *
WE ALLOW HEDGING, SCALPING AND NEWS TRADING, SO YOU CAN CHOOSE A STRATEGY THAT IS MOST SUITABLE AND EFFICIENT FOR YOU
WE GUARANTEE THE NEGATIVE BALANCE PROTECTION
TRADAXFXMARKET LIMITED IS AUTHORIZED AND REGULATED BY THE CYPRUS SECURITIES AND EXCHANGE COMMISSION (CYSEC), UNDER LICENSE NUMBER 182/12. WE ARE FULLY COMPLIANT WITH THE MARKETS IN FINANCIAL INSTRUMENTS DIRECTIVE (MIFID), SINCE IT HAS BEEN INTRODUCED BY THE INVESTMENT SERVICES AND ACTIVITIES AND REGULATED MARKETS LAW OF 2007 (LAW 144(I)/2007). MOREOVER, TRADAXFXMARKET HOLDS A CROSS-BORDER CYSEC LICENSE, AUTHORIZING THE PROVISION OF OUR SERVICES THROUGHOUT THE EEA. WHAT YOU GET WHEN YOU INVEST WITH US.... INVEST $500 AND EARN $2500 IN 7 DAYS INVEST $1000 AND EARN $5000 IN 7 DAYS INVEST $2000 AND EARN $10,000 IN 7 DAYS INVEST $5000 AND EARN $30,000 IN 7 DAYS INVEST $10,000 AND EARN $65,000 IN 7 DAYS TO JOIN OUR INVESTMENT NETWORK, VISIT OUR WEBSITE TODAY. GO TO WWW.TRADAXFXMARKET.COM OR SEND US A MESSAGE AT [email protected] KIND REGARDS, [email protected]
KoinPro Trailing stop automatically shifts your loss limit and also empower you to monetize your traffic and receive up to 41.7% rebates
A platform that is built for everyone, it doesn't matter if you are entering to the crypto arena newly or you have gained experience over the years. The most developed contracts in the crypto space with an exclusive double-up contract just cater to your need always. You can automatically exit your position once a 100% profit is achieved and receive a whopping 41.7% through the referral system with a 3 tiers deep level. KoinPro makes things easier as compared to what we have in most exchanges today. The platform charges a universal flat fee for all trader that is negligible, so you can concentrate on your trading without bothering on saving from the trading fees. In the KoinPro platform, you can state your level of profit in which will be automatically executed when your forecast proves to be true. The trailing stop is there to shift your loss limit either up or down depending on the market situation. There are many features amongst which is the ability to review your liquidation price per position through the open position tab and adjust as needed by adding additional margin with the leverage slider or the risk limit tab. Everything is just there that trigger automatically when your speculation is right. You can trade CFD stocks and cryptos with Bitcoin, remain anonymous while trading. Just have a look and register with KoinPro today
What markets have perpetual contracts for XRP? are they settled in XRP USDT or BTC? what is the trading pair name?can i trade with leverage trough the websoket with a bot this trading pairs? What is the difference with a CFD on xrp/usd?
Leverage is a key feature of CFD trading, and can be a powerful tool for a trader. You can use it to take advantage of comparatively small price movements, ‘gear’ your portfolio for greater exposure, or to make your capital go further. When trading CFD's, you don’t have any other responsibilities because you’re never the owner of the stock. Example of trading with leverage In this example, we assume that you have $1000 in your trading account. Leverage plays an inherent role in the appeal of CFD trading, and it is a central component to the idea of trading contracts for difference. Because CFDs are traded on margins, traders find themselves embracing leverage as a part of their CFD trading, and should ensure that their exposure is kept within reasonable boundaries at all times to Assuming that the leverage ratio is 1:100, that is, the total investment is 100 times the trader’s principal (in CFD trading, the leverage ratio can be as high as 1:2000). Although an investor’s principal, or margin, is only a fraction of the total value of a trade, the trading profit or losses (P/L) are still calculated in terms of the Financial leverage in CFD Trading is an investment strategy that allows them to gain exposure to the financial markets with a smaller upfront capital, know as margin. This strategy is also known as margin trading, which allows traders to make their capital work harder for them and achieve a higher return on equity.
Explaining how leverage when trading CFD works. Your Forex Broker Account leverage does not matter anymore. US & European Forex traders can relax! Trading with leverage tradimo - learn to trade - Duration: 6:19. Tradimo - Your money learning platform 44,645 views. 6:19. Stocks - Contracts For Difference (CFDs) - Duration: 12:00. Leverage is a form of trading that allows small deposits to bring big returns. Traders provide a small part of the capital needed to open a position. This cash amount is magnified – or leveraged –... Forex and CFDs are much more accessible than other forms of investments because of the power of leverage. 💰💰💰 What is leverage? 💰💰💰 It is an investment model in which traders are ... Trading CFDs is very risky because CFD brokers usually give leverage to traders, however CFDs allow for easy, liquid and low cost trade of many products that would otherwise be quite difficult to...