In this lesson of the CFD course, we will discover how the CFD trading platform works . Briefly, we remind you that the CFD platform is the software that the broker makes available to trade CFDs. The broker offers both CFDs and the platform to trade them.
If you want to play the stock market from home, trade Forex or trade cryptocurrencies, you must necessarily open an account online with the broker . Once you have signed up, you can log into their trading platform and then trade.
We remind you that it is possible to practice with a demo account, without depositing . If you want, you can switch to the real account and continue to maintain the demo account as well.
Alternatively, you can choose from other trading platforms that are equally safe and regulated.
How to access the CFD trading platform
To access the CFD trading platform , simply follow these three easy steps:
- Access this official page
- Click register and then continue providing your details
- Practice trading with your free demo without depositing
This is how the eToro platform looks at the first login.
It is good to note that although for the demo account it is not necessary to simply register, for the real account it is necessary to send a copy of your own identification document . This is because, according to current laws, it is necessary to be of legal age to be able to operate in the financial markets and to be able to withdraw money (regulations against money laundering).
What to do after logging into the platform
At this point, if you have followed the steps above, you will be inside the trading platform. So, let’s find out how it is used from a practical point of view.
First of all, I recommend that you review each part of the trading platform well to know each of its characteristics
To do this, follow our “path.” Let’s start by identifying the essential parts:
- Markets or Favorites (to find assets to trade with)
- Order window (appears when clicking on an asset)
- Account status (table below)
- Real time graph
- CFD information
1. Available financial instruments
First of all, each trading platform offers the ability to view all available financial instruments such as stocks, stock indices, Forex currency pairs, ETFs, and commodities. To these in recent years cryptocurrencies have also been added but also other tools.
As you can see in the image below, each category can have subcategories (for example, major and minor changes, where major are the most important).
2. Order window
The order window allows us to establish the trading order. From the eToro order window, for example, we can configure:
- Amount: the total value for which you want to trade. For example, if you invest in Amazon stock worth $ 5,000, that’s the amount. Please note: the required investment is less than this sum, due to financial leverage.
- Position type (Buy or Sell): clicking Buy opens a bullish position, while clicking Sell opens a bearish position.
- Stop Loss: from this box you can set the maximum loss limit for the operation, after which the position will be closed automatically.
- Take Profit: from this box you can set the profit target for the trade, after which the position will be closed automatically.
- Order: in the upper right you can see “invest”. In that box, instead of reversing, you can choose “order” if you prefer to open an order deferred, for example, if a certain condition occurs.
3. Account status
In this box we monitor four very important values such as:
- Available: consists of the available balance in your account
- Total invested capital: how much of your capital is currently invested
- Prof (profit if positive, loss if negative): is the total profit / loss account of all open positions at any given time
- Virtual assets (Equity): it is your available balance plus the initial margins committed to the positions
4. Graph of the selected financial instrument
The price chart is essential both to get an idea of the market trend and for its study and interpretation.
On a CFD trading platform, the chart can appear on the main screen or be called in some way. On eToro , to view the chart, click on “Chart” in the menu bar after clicking a stock name.
Regarding the study and interpretation of the charts, indicators can be applied for technical analysis . To do this, you need to zoom the chart to full screen and then click on the icon with the three candles in the upper right.
Other commercial trading platforms may include a pencil or the f (x) key.
5. Information about the CFD
We talked about the information about CFDs in a previous lesson dedicated to the details of CFDs, where we saw how to view them on the trading platform.
On the eToro trading platform, for example, the CFD details (commissions, leverage, etc.) are visible in the order window. So, to see them, click on a specific asset and read them in the relative order window.
This is important as it allows you to understand exactly what you are trading on.
Go to the next lesson: Initial Margin, Hold, and Call
eToro is a multi-asset platform that offers both investing in stocks and crypto assets, as well as trading CFDs.
Please note that CFDs are complex instruments and carry a high risk of losing money quickly due to leverage. 75% of retail investor accounts lose money when trading CFDs with this provider. You need to consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Past performance is not an indication of future results.
Crypto assets are volatile instruments that can fluctuate widely in a very short period of time, and therefore are not suitable for all investors. Aside from CFDs, trading crypto assets is not regulated and is therefore not supervised by any EU regulatory framework. Do you prefer to copy the TOP Traders?
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