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CFD Online Trading
CFDs are usually traded online using electronic trading systems. A trader receives quotations in real time and can make his/her transaction at any moment.
For example, a trader plans to short on EUR/USD and he reviews the quoted rates, Bid and Ask prices in the same format as shown below [demonstration only]:
1.38505 / 1.38510
The difference between the Bid and Ask prices listed above forms the spread, which can vary depending at times. A trader can sell at the Bid price and purchase at the Ask price. For the euro/dollar pair, a change in price by 0.0001 is referred to as a change by 1 pip, with the spread in this case being equal to 0.5 pip. This is a very small spread and is usually available for CFD Online Trading on ECN accounts. Other accounts can have a spread of up to 2 pips, which is also very small. For more information on CFD’s, check out Trader’s Way.
CFDs are usually traded online using electronic trading systems. A trader receives quotations in real time and can make his/her transaction at any moment.
For example, a trader plans to short on EUR/USD and he reviews the quoted rates, Bid and Ask prices in the same format as shown below [demonstration only]:
1.38505 / 1.38510
The difference between the Bid and Ask prices listed above forms the spread, which can vary depending at times. A trader can sell at the Bid price and purchase at the Ask price. For the euro/dollar pair, a change in price by 0.0001 is referred to as a change by 1 pip, with the spread in this case being equal to 0.5 pip. This is a very small spread and is usually available for CFD Online Trading on ECN accounts. Other accounts can have a spread of up to 2 pips, which is also very small. For more information on CFD’s, check out Trader’s Way.