Open your first trading position in online trading

trading area

You should definitely test it once in the demo account. It is not uncommon that mistakes are made when opening orders and you lose money quickly.

After you have chosen the market and also have a trading idea click on buy or sell. By CFD (contract for difference) short selling is easy for the private trader. So you can also bet on falling prices.

Depending on the broker and trading platform, your trading screen will look similar:

The following points explain the trading screen: 

  •     Buy: Invest in rising prices
  •     Sell: Invest in falling prices (short selling).
  •     Amount: Bet amount
  •     Stop Loss: Automatic loss limit
  •     Leverage: Multiply the amount bet (margin)
  •     Take Profit: Automatic profit limit

The types of orders for trading - position management

Traders can use different order types for online trading. Depending on the strategy, one of these types is selected. Invest in rising or falling prices.

n the following points I will give you an overview:


  •         Market Buy: Buy directly at the market price.
  •         Buy Limit: Wait until the market trades a certain price (Below current price)
  •         Buy Stop: Wait until the market trades a certain price (Above current price)
  •         Market Sell: Sell directly at the market price
  •         Sell Limit: Wait until the market trades a certain price (Above current price)
  •         Sell Stop: Wait until the market trades a certain price (Below current price)
        Orders to close positions (limits):
  •         Stop Loss: Limit your risk with an automatic loss limit
  •         Take Profit: Take your profit automatically at a certain price

Categories of online trading

Trading can generally be divided into different categories. The important thing here is that no one has to force themselves into such a category. You can design your trading in the way you want. The different trading styles have advantages and disadvantages.

Leverage is used to trade larger positions with a small margin / stake in the market. The positions must be accordingly large, because some assets fluctuate less than 1% a day.

trading app
Debts due to online trading? - The elimination of margin requirements

The use of leveraged derivatives can theoretically lead to over-indebtedness of the trading account. This happens due to unforeseen market events where the broker cannot execute or close your position. Due to strong movements you will get a very bad price execution. When opening positions that are way too high, this has happened in the past. In most cases, the trader is even to blame, because he misjudges the risk and uses incorrect risk management.

"However, the margin call has been abolished at every online broker for Forex and CFDs in Europe."

So you can no longer incur debts. The risk in online trading is always very high, because you can lose your entire invested capital in the worst case. Invest and the market goes against you, you lose capital. If you are right and the market moves in your direction, you win.

Statistically, you always have a 50/50 chance of winning. With the right analysis, the hit rate can be increased.

Facts about risk:

  •     You cannot incur debts (margin call abolished).
  •     The risk always lies with your invested capital and stop loss
  •     You can lose maximum the invested capital
  •     Investing in the financial markets is risky, but also offers good opportunities.

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