The greatest advantage of CFD trading is that you can make substantial gains from small stock price changes that occur over very short terms. An experienced CFD trader can profit from a single day’s trade. To make the most of this special advantage with CFDs, it is essential that you should be able to carry out trades quickly and at any time during day or night. Almost all traders carry out their CFD trading online so that they can lock in their profits and check potential losses immediately when they sense a shift in the market prices.
If you are new to CFD trading then it is important for you to ensure that your CFD trading platform allows you to implement your decisions quickly. All brokers or CFD providers may not have the same trading platform. It is up to you to find one who offers a platform with all the features you deem necessary. Here are a few features to look out for.
Ability to Take CFD Positions after Market Closing
Many CFD traders manage a day job and trade after office hours. As a novice trader, this is how you are likely to trade too. Once you return from work, you need to review the market movements that have occurred throughout the day. Based on this review, you will decide your positions for the next day. As you may be at work when the market opens the next day, you should be able to enter the positions each evening. The position should be implemented as soon as the markets open the following day. You may also want to enter new trades when you notice a marked fluctuation in an asset class you do not have exposure to, as yet.
The ability to trade when the markets are closed is a very critical feature to look for with CFD trading online. Without the 24 hours trading feature, you are limited to market hours when you want to enter trades or take positions. This will pose huge problems if you work away from home during the day.
Typically, advance orders placed in the evening for the next day’s trades are used in conjunction with limit orders. Some CFD brokers also allow you to enter stop limits in advance. Ensure that the limit orders can be placed both above and below the closing market price so that you have the greatest trading flexibility.
Access to a Range of Assets
Your CFD platform should give you access to a wide range of assets such as commodities, stocks, indices, forex etc. As a beginner, you may just trade with one asset class at present, but as you grow more familiar with the markets and with CFD trading you can add more assets to your portfolio. At this stage, if you can open positions in new asset groups with your existing platform, it keeps things simple and easy to manage.
Check for 24 x 7 Phone Help
Opt for a broker who has a phone backup for his trading platform. In case the trading platform is malfunctioning or you are unable to use it for some reason, you should be able to carry out trading by directly contacting the broker over the phone. This will ensure that your positions are protected even when you cannot manage them online. A 24 x7 helpline is the best backup you can find because this will let you trade with the same flexibility that your online trading platform offers.
Always try out a demo of your CFD trading online platform before you make any decisions. Every broker may use a slightly different version of the trading platform. Opt for one that is easy to use, unambiguous and flexible enough to let you expand your CFD trading portfolio as your skills grow.