Online trading 212 etc
Discussion
I have a practice ac
but there are thing I still don't understand. Such as buying units of oil or currency. How do I know how much of my imaginary pot I have put into in terms of value rather than units. I understand the mechanics of the buying and selling but struggling to corrispond units bought to £ invested? All the "tutorials" are how to make a trade etc.
Eg do I have to work out what putting in say £1000 of my £10000 free money is in units?
but there are thing I still don't understand. Such as buying units of oil or currency. How do I know how much of my imaginary pot I have put into in terms of value rather than units. I understand the mechanics of the buying and selling but struggling to corrispond units bought to £ invested? All the "tutorials" are how to make a trade etc. Eg do I have to work out what putting in say £1000 of my £10000 free money is in units?
Think of it in terms of how much you're risking.
You're using a leveraged product so it depends on what leverage (£ per point / pip / tick), and what stop loss order you are using. Stop losses are essential to successful trading so read that link.
Let's say I have a £10,000 account and I trade the FTSE.
The FTSE is at 7100 and I think it will go higher. I go long at 7100 with the leverage of £10 per point. Now what I have to decide is what risk I wish to take on through using a stop loss. For example I may place a 20 point stop loss which means my risk is £200 (£10 per point x a 20 point market move).
Trading is exceptionally hard. I make part of my living from it and it has taken years and thousands of hours to get to where I am able to.
Send me an email if you want a head's up about a couple of things as there's so much garbage out there.
You're using a leveraged product so it depends on what leverage (£ per point / pip / tick), and what stop loss order you are using. Stop losses are essential to successful trading so read that link.
Let's say I have a £10,000 account and I trade the FTSE.
The FTSE is at 7100 and I think it will go higher. I go long at 7100 with the leverage of £10 per point. Now what I have to decide is what risk I wish to take on through using a stop loss. For example I may place a 20 point stop loss which means my risk is £200 (£10 per point x a 20 point market move).
Trading is exceptionally hard. I make part of my living from it and it has taken years and thousands of hours to get to where I am able to.
Send me an email if you want a head's up about a couple of things as there's so much garbage out there.
It does depend on what you are actually looking to work out. For example, are you looking to reference back £/point to contract sizes? E.G., £10/point on a FTSE bet is the equivalent of one contract in market size, and an overall trade size of £70,000. But then something like the DAX is €25 per point.
It's always useful to work out the total size of your proposed trade as it gives a better comprehension as to the overall risk you are taking on.
Also, trading212 don't have a spread betting license so deliver you the OTC as a CFD which doesn't make sense for a U.K. based trader
It's always useful to work out the total size of your proposed trade as it gives a better comprehension as to the overall risk you are taking on.
Also, trading212 don't have a spread betting license so deliver you the OTC as a CFD which doesn't make sense for a U.K. based trader
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