There are several components to trading CFDs (contracts for difference).
NSXCOIN has made the process easy to follow.
The most important factors are:
v Which Asset
v Investment Amount
v Stop Loss
v Take Profit
v Making Your Decision
When you trade with NSXCOIN, you can choose from an extensive list of assets. These included all major forex pairs, ranging from the most popular EUR/USD, to commodity currencies such as the New Zealand dollar, referred to as the kiwi. You can also trade commodities, such as gold and oil, coffee and corn. If you are a tech stock trader, you can trade Apple, Facebook and much, much more, including major stocks from exchanges around the globe. Lastly, you can select to trade the major indices, such as the FTSE or the Dow Jones.
Once you have selected the asset you wish to trade, you need to determine if you wish to go long (Buy) or short (Sell) the asset. Remember, with a CFD trade, you do not own the asset; you are simply negotiating a contract between the point you enter and exit your trade. On the NSXCOIN platform, you simply locate your preferred asset using our asset management screen and click on the Buy or the Sell button. This will begin your trade and will open a trade window. Please note, the price offered for the asset is based on a spread between the Buy and the Sell prices. NSXCOIN offers the tightest spreads in the marketplace but it is vital that you understand spreads before you trade.
Trading CFDs carries risk because you are trading with leverage and the trade could move against you. To better understand risk management and leverage, please visit the NSXCOIN education center and watch the appropriate videos or read our eBooks. Understanding your risk and exposure is very important, because by using effective, solid risk management skills, you can limit your losses and protect yourself.
You need to set a Stop Loss order. This is a price that you set up as part of your trade that tells the NSXCOIN trading platform to close you trade if your trade moves against you. You set the price level and you can change it at any time you want to. This step is important in order to limit your losses and exposure. You also need to learn how far a market swings so that you do not stop a trade too early or too late. Please watch our videos on technical analysis, Stop Losses and risk management.
You can also set a Take Profit price. This signals our system to close your trade when it reaches a certain profit level, so that you do not miss out on positive market moves.
Now that you understand how to trade CFDs, simply click on the Trade button and get your trade started. Remember, you can always go to the open trade section and make changes to your Stop Loss and Take Profit orders or you can simply close your trade at any time in order to lock in your profits.
Making a trade is not so difficult but making a good trading decision is important so you will need to develop a trading plan and strategies and to get to know an asset’s characteristics and movements. By using technical analysis, you can master charts and indicators to assist you in making smart trading decisions. Visit our Trading Strategy section to learn more about technical and fundamental analysis.
We also offer trading signals, live asset technical analysis and up-to-the-minute market information and other useful tools. Make sure you take advantage of these. Remember, trading carries risk and you should minimize this risk with education, knowledge and good risk management skills.
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