MotionTrade Forex/CFD How Is CFD Trading Done?

How Is CFD Trading Done?

A practical walkthrough of selecting, placing, and managing a CFD position.

CFD order workflow and market analysis

Before you place a trade

CFDs are leveraged products. Decide how much you can risk, understand the market you are trading, and review the position size, spread, leverage, stop-loss level, and potential loss before confirming an order.

Place the position

  • Enter the trading platform and choose CFD trading from the market toolbar.
  • Choose an instrument, then filter the available list by indices, forex, stocks, or commodities.
  • Choose Buy when your analysis supports a rise or Sell when it supports a fall.
  • Select Trade for immediate execution or Order to define a price condition for a future entry.
  • Review the entry price, position size, stop loss, take profit, and estimated cost before confirming.

Manage the trade

Monitor the open position against the plan you made before entry. You can adjust eligible stop-loss or take-profit instructions as market conditions change, but avoid increasing risk simply to keep a losing trade open.

Close the position when its target, risk limit, or original market premise has been reached.

Ready to put your knowledge to work?

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