What is CFD?
CFD (Contract-for-Difference) is an agreement between a seller and a buyer to pay the difference between the opening price and closing price of a particular market or asset. Trading on CFD, you speculate on whether the asset will increase or decrease in value. Thus, you never actually own the asset but forecast whether it will rise or fall. You buy asset CFD if you think that its price will rise or sell it when it seems to be falling soon.
NAGA offers CFD trading on crypto and over 400 stock CFDs on the platform.
A stock is a type of security that represents an ownership share of the company. When you purchase a stock CFD, you do not become a shareholder of the underlying stock. However, the CFD value will rise and fall with the stock price it tracks, much like a regular stock. That's why you can profit off the rise or fall of the stock value without its ownership.
If you are a beginner at crypto trading, CFDs may be your perfect place to start. NAGA offers CFD trading on crypto with no commissions or hidden fees, equipping you with all the trading tools you need, like stop-loss and take-profit limit orders.
Here are the main benefits of CFD crypto trading:
▪️Cryptocurrencies are volatile. In CFD trading, you can unveil the power of crypto without actually owning it.
▪️You don't need a crypto storage wallet or crypto exchange deals.
▪️You can benefit from both rising and falling markets.
How to start trading CFDs at NAGA?
Find the most popular contract-for-difference stocks from major countries, such as the USA, Germany and the UK, and take advantage of their price on the rise or fall. To see all the available CFDs at NAGA go to the Markets section and choose stocks marked 'CFD'.
2. Decide whether you want to buy or sell
First, you need to check the current price. Click on the stock to see detailed charts and current prices. The first price is the bid (sell price). The second price is the offer (buy price). If you think that the price will go up you can buy CFDs or sell them if the price is likely to fall. You can also choose 'Sell/Buy at specific rate' if you don't want to buy/sell at the current price.
3. Select the size of your CFD trade
Decide how much you want to invest. Choose the investment amount or lot size and enter the value.
4. Set limit orders
A limit order is a type of order to buy/sell an instrument at a specified price or better. Setting stop loss orders is the key risk management technique to prevent great losses. ❗️Please note that a limit order is not guaranteed to be executed at the exact same price.
Learn how to set limit orders 👉🏻 here.
5. Close trade
After you opened a trade, you will see that your profits grow along with the asset price. You can open new trades or close your current trade when you are satisfied with your trade or want to prevent losses.