CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
When trading CFDs (Contracts for Difference), you can speculate on whether an instrument’s price will go up or down over time.
- Opening a short position means you expect the price to fall.
- Opening a long position means you expect the price to rise.
Before placing a trade, it's always a good idea to check the relevant price chart to analyse market trends.
How do short positions work?
A short position is opened by selling units of an instrument at its current price. If the price decreases, you can buy it back at a lower price, profiting from the difference.
How do long positions work?
A long position is opened by buying units of an instrument at its current price. If the price increases, you can sell it later at a higher price, making a profit from the difference.