Journey to CFD crypto trading - Episode 003 - Trade details

Since I have issued a trade few days ago when setting up the platform, I am going to find out what are the vital information needed to make a trade.

First of all, trading CFD is about how much usable margin and account balance, so the trade can sustain. Other than that, I should also understand how much commission the broker will charge. Take note that CFD does not mean I am putting in my real money to buy crypto. There's no actual transaction from in the market, neither can I place those coins into my wallet.

Long pressed the position and the trade detail is shown. I am listing down all the vital information so I know what to do next.

• S/L = stop loss. If I buy a position, I need to set a lower price value, in case there is a sharp drop, my position get to closed without eating up too much of my margin. If I sell a position, I need to set a higher price value.

• T/P = take profit. If I buy a position, I need to set a higher price value, and when market price hit this value, I will be out with profit. If I sell a position, I need to set a lower price value.

• ID = the transaction identity used to tag this particular position

• Swap = overnight interest charge by broker. Since this is a contract, which means that I am virtually holding brokers EOS with my 50¢. The longer I hold, the more interests I will have to pay. Some broker are nicer where they will pay me interest instead, by letting them hold my U$

• Taxes = for corporate account, tax has to be declared upon transaction. This part I have not explore yet since I'm trading a personal account so far. Will get into this when I grow bigger.

• Commission = some broker take a fix spread. Which means I need to buy at slightly higher price compare to the current market value. This broker takes commission, which means whatever price I see on the price feed, I will get entry exactly at that price, in exchange I will have to pay a small commission. Some broker charge this once during entry, some will charge at the exit, and some charges both way. I am about to find out once this transaction closed.

So far, the trade has been in profit. About 3% gain from my entire portfolio. Used margin 50¢ as per screenshot.

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