Does the provider offer risk management tools, ie stop-loss orders?
As will be discussed in more details in a later part of this book, stop-loss orders are useful tools to manage your CFD trade. A stop-loss order is one effective way to minimise potential losses and to protect your profit. Make sure that your chosen CFD provider allows you to place stop-loss orders and change them as your trade progresses with little or no additional charge. Q: Where does the provider keep client money? A: Under existing laws governing financial services companies in Australia, CFD providers are required to keep client money in a segregated account. Q: What happens to your money not allocated to open trades? A: Some CFD providers pay interest on a certain amount of money on your account as long as they’re not allocated to cover any open position. Some CFD providers pay interest if you have $10,000 of free equity in your account. TYPES OF CFDS Australian Share, Indices and Sector CFDs In Australia, most of the CFD providers offer CFDs on the top 500 listed shares. The l
Related Questions
- Why will complying with the FIFO rule require that I lose the ability to place stop-loss and limit orders as well as the ability to close positions from the Open Positions window?
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- Does Candalyse Publishing offer the author a publisher discount on my orders?
