Learn how to protect profits and minimise losses with pending orders. Limit and stop orders can be a powerful tool in any trader’s arsenal and you can learn how to use them with virtual money at https://www.trading212.com/en/Free-FOREX-Practice-Account-GBP/
At Trading 212 we provide an execution only service. This video should not be construed as investment advice. Investments can fall and rise. Capital at risk. CFDs are higher risk because of leverage.
How can the market price falling create profit when you sell your shares if the value has decreased?
Hi, Amrik. If you think the price will decrease, you can sell your desired quantity of an instrument in order to buy it when the price goes down. That is called a short position. Please bear in mind that because you are trading on the price movement of an instrument, with a CFD you don’t own the underlying stock, and can therefore trade on movements in the market, up or down.
hi can you please elaborate more on your explanation please?
I still don’t get it how you can make profit when you go short.
in your illustration you go short at 400 and make profit when you buy at 500
Hi there. We would love to talk to you and answer all your questions. Contact us now to see how we can help you: http://www.trading212.com/en/Contact You can also take a look at the Learning Centre on our website at http://forex-academy.trading212.com/en Wishing you successful trading with Trading 212.
Hi. I’m a little confused here, I’m completely new here, wandering if anyone can explain to me… what happened if you don’t place limit or stop limit.
1) If I were to buy, how could I sell it if I have not set the place limit or stop limit?
2) Is there a time frame in which I could the trade would stop if I don’t set the place limit or stop limit?
thanks
Hi, Robert. Regardless of whether you assign pending orders to your positions or not, you can close them manually. In case of insufficient margin your positions will be closed automatically, as you use negative balance protection with Trading 212. When trading futures, all positions will be closed on the last trading date automatically.
Hi,
Why do you trade against the Trend?
Why don’t you place the stop loss at the last support?
Thanks
In English you say probably bottom instead of support, sorry
Hi, Dani. Please contact the customer support team. Some clarifications are needed, so you can receive the best answer. Here are the contact details: http://www.trading212.com/en/Contact.
Is this the same as take profit and stop loss?… I’m new to trading.
Hi there. The Limit and Stop Orders are entry pending orders, whereas the Take Profit and Stop Loss orders are associated pending orders. You can read more at http://www.trading212.com/en/Frequently-asked-questions?cId=5.
hi David,
can u give me please some reasons why you set a SL and take the you loss , when you can hold your stocks/coins ect. and wait till its up again so u don’t have to take a loss?
the only disadvantage is that you can’t make a new trade right?
Lesley, you need to ensure sufficient free funds on your trading account when trading CFDs to keep your positions open. Limiting the maximum loss for a given position to a certain degree protects you from closing your open positions automatically in case of insufficient funds on your trading account.
Realize this kind of video is really hard ?
If one places a limit sell order and then decides to manualy sell prior to it reaching that limit, will the limit order automaticaly cancel?
It does mate yeah. You should use their practise account to get to grips with the interface (and the trading itself if beginner)
Am loving your tutorials and finding this channel SO incredibly helpful, so thank you SO MUCH!!! Makes so much sense!! 🙂
“Open Short Position: Stop Buy/Limit Buy”
I dont see these options in my account, all i have are the following:
Market, Limit, Stop, Stop Limit
I guess that’s in CFD account ?
Indeed those order types are available in CFD accounts only.