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4thelasers Oct 7, 2019 1:18pm | Post# 1

How much wiggle room on CFD Trades?
I'm making the unusual move from Futures to CFDs and need some advice about how to set up my trades.

Futures tend to move in fairly large tick sizes depending on the instrument: each tick could be 1.0 0.5 0.25. There's also no spread in Futures. The closest buy and sell orders are separated by 1 tick.

So for stop entry orders I'd place my order a tick above or below the breakout price.

CFDs move in much smaller tick sizes. 0.01 0.1. Plus there's the spread. I know I need to add the spread to my buy entry orders and my short exit orders but I don't know how much wiggleroom should to add.... 0.01 is such a tiny amount... I'm worried about being triggered into a trade too early by a small fluctuation of the spread.

How much wiggle room should I add on CFD Trades?

Mandariin Oct 7, 2019 2:32pm | Post# 2

Why ? What do you trade ?

Now there are micro contracts, basicly risk is the same.
And spread on CFD is larger than you pay for futures commission.

Depending on CFD "broker"

NAS100 spread 1,06 its mini contract 21,2 $ micro 2,12 $
SPX500 spread 0,38 its mini contract 19 $ micro 1,9 $
And so on ...

4thelasers Oct 7, 2019 4:18pm | Post# 3

Yeah I know about the micro-contracts but I'm trying out CFDs for a while. I want the flexibility of holding trades long-term without huge overnight margins. So trying this for a while.

Ef5 Oct 10, 2019 12:41am | Post# 4

I've never traded CFDs so I can't advise, but I'd be interested to know how the transition goes for you. Good luck!

vpn Oct 10, 2019 3:41pm | Post# 5

By going to CFDs you're certainly entering into the wild west of the trading world. Make sure to use a well-regulated broker, and avoid the shady offshore brokers based out of Seychelles, St Vincent & Grenadine, Belize, and British Virgin Islands. They will eat you up quick!

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