TheTraderWiki

Sebastian M.

My name appears on the guides that show you how CFDs work: what a CFD is, how a trade moves from quote to close, how leverage and margin work, the costs, pips and lots, and the order types. I also write the market guides for forex, indices, commodities, gold, oil, shares and crypto, including when each market is open.

2 min readUpdated

Pages written

  • What is a CFD?What a contract for difference is, a worked example with numbers, and what the contract doesn’t give you.
  • How a trade worksEvery stage of a CFD trade: quote, order, fill, margin, overnight financing, closing and your statement.
  • How to start tradingA beginner’s path in seven steps: the product, the costs, a demo, risk rules, a licensed provider, a record.
  • Leverage and marginWhat leverage does to your buying power, the margin terms your platform uses and who sets the limits.
  • Maximum leverageWhy the leverage a provider advertises isn’t the leverage you get, and what you give up to reach it.
  • Costs and feesEvery cost of a CFD trade: spread, commission, overnight financing, weekend charges and account fees.
  • Pips and lotsWhat a pip and a lot are, and the formulas for pip value, margin, profit and loss and position size.
  • Stop-loss and ordersMarket, limit and stop orders, the stop-loss, the trailing stop, take-profit and partial close.
  • ForexCurrency pairs, pips and lots, trading hours, what moves exchange rates, and why swap can be paid to you.
  • IndicesWhat an index CFD tracks, cash versus futures prices, dividend adjustments, hours and the gap at the open.
  • CommoditiesHow futures set the price, contango and backwardation, roll costs, gold’s margin rate and price swings.
  • Gold tradingWhat XAU/USD is, where the gold price comes from, what moves it, contract size, leverage and trading hours.
  • Oil tradingWTI and Brent crude oil CFDs, the futures roll, what moves oil, the EU and UK 10:1 cap and natural gas.
  • Shares and cryptoShare CFDs: commission, dividends, borrow costs, results gaps. Crypto CFDs: the EU 2:1 cap, weekends and bans.
  • Crypto CFDsCrypto CFDs against owning the coin: no wallet, the EU 2:1 cap, the UK ban, weekends, financing and offshore.
  • Trading hoursForex sessions, stock exchange hours in UTC, gold, oil and crypto, clock changes, and gaps at the open.