• Asia Pacific regional Service Center:+852 68123002
  • info@cbfforex.com

Trading Training

CFD, Contract For Difference, 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.

Overview

Stock CFDs were introduced in the 1990s by stock traders, allowing hedge fund clients to use high leverage to increase the risk of downside exposure. Another advantage to CFD is that there is no need to pay stamp duty. It was not until the late 1990s, with the rapid development of technology, that CFDs has received widespread attention, making CFDs a major market in the past decade. Because of the use of leverage, traders have the opportunity to perform speculative trading through leverage on highly volatile stocks in a short period of time. Currently, CFDs are widely used in multiple markets and are not limited to the stock market. Not only can professional traders use CFDs, but also for retail customers at home. According to relevant report statistics, more than 25% of the UK stock market's trading volume is CFD trading. Now Canada, Singapore and Eastern Europe have also started CFD trading.

Modify order

Once you open a position, you can only modify stop-profit and stop-loss when trading starts.

Partial closing

After double clicking the submitted order to form a transaction order, you can partially close the position and then select the number of order lots you want to close (lot size) on the contract note.

How to add an indicator?

In order to add an indicator, you simply need to click on the indicator name in the navigation table and drag it into the chart. When you add an indicator to your chart, a dialog box will pop up allowing you to set the indicators added.

How to create a template?

If you have customized a chart or have added multiple indicators to your chart, you may wish to keep this template and quickly copy it to other charts. It is assumed that you have turned the background color of 1 minute EURUSD chart into blue and the price line into red.

What is margin trading?

Margin trading is a form of spot trading in foreign exchange. Since the transaction is not delivered, you do not need to convert it to any commodity or stock.

Transaction

In case of CFDs transaction, you only need to invest the initial margin required by the commodity in your account.

Basic Terminology

Each currency pair/commodity has prices in two directions: bid price and offer price. When a transaction is concluded, the order is bought at the bid price and sold at the offer price. The closing directions are opposite.
Pip value is the profit or loss caused by each pip of fluctuation of the traded currency pair or commodity. It is generally measured by one standard lot. The value of one pip of the forward currency pair or commodity (for example, XAUUSD, EURUSD, GBPUSD, etc.) is $1; the value of one pip of the reverse currency pair or commodity (for example, USDJPY, USDCHF, USDCAD, etc.) is slightly less than $1.
1 pip usually refers to the smallest increase or decrease in price. For example, the last decimal point of the XAUUSD quote, 1297.58, is 0.01, which is one pip. If the price fluctuates to 1307.58, it is up to 10 dollars, equivalent to 1000 pips.
The lost size of the MT4 platform refers to the number of orders placed. 1 is one standard lot, and the minimum lot size for most commodities/currency pairs is 0.01.

Traded Products

Information

Partners

Trading Training

About Us

Member Login

Risk alert: Margin forex/CFD trading involves high risks and may not be suitable for all investors. You should carefully consider your investment objectives, financial situation, needs and trading experience before deciding to trade the forex/CFDs offered by CBF. During the transaction, the losses you suffer may exceed the funds deposited. Before trading forex/CFDs, you should be aware of all risks associated with trading CBF products. Forex/CFD products are only suitable for customers who fully understand the market risks. The information provided by CBF is a general opinion and does not take into account your investment objectives, financial situation or needs. The content of this website should not be interpreted as personal advice. CBF recommends that you seek the advice of an independent financial advisor.

CBF is a registered trademark.

registration number: 64308836

Restricted Regions: CBF of Companies does not provide services to residents of certain regions, such as the United States of America , Israel, British Columbia, Manitoba, Quebec, Ontario and Afghanistan, Belarus, Burundi, Cambodia, Chad, Comoros, Congo, Cuba, Democratic Republic of the Congo, Equatorial Guinea, Fiji, Haiti, Iran, Iraq, Kosovo, Libya, Mozambique, Myanmar, Nicaragua, North Korea, Palau, Panama, Russian Federation, Seychelles, Somalia, South Sudan, Sudan, Syria, Turkmenistan, Venezuela, Yemen, Anguilla, Mali, Trinidad and Tobago and Vanuatu.

>>Click here for the complete risk disclosure.

>>Risk warning.

Disclaimer: Some of the contents on our website come from the Internet. If you have inadvertently involved third-party intellectual property rights, please inform us by call or by writing. Our website will promptly reply and improve.

CBF will never directly conduct any form of financial investment behavior on behalf of customers. If you want more information about CBF's partners, please visit our page of FAQ about Partners.