With Contract for Difference Brokers, sell trades can be placed( This involves borrowing a certain amount of currency from the broker and selling at a specific price).
This way, if the trades goes in the bearish direction, you make a profit and pay the broker their "spread".
Regular CFD brokers include FXTM, Hotforex, Deriv etc.
A stop loss on the other hand is a risk mitigation tool used by traders to close trades when price goes against them, this which are either buy or sell trades.
Using a stop loss traders no longer have to be there to close the trades manually, also it helps them set risk to reward ratios and remove emotions when closing trades.
I hope I have been able to answer you correctly sir.
With Contract for Difference Brokers, sell trades can be placed( This involves borrowing a certain amount of currency from the broker and selling at a specific price).
This way, if the trades goes in the bearish direction, you make a profit and pay the broker their "spread".
How do you make profit from selling at a lower price?
You borrow BTC @ $34k and sell it @ $32k, where's the profit coming in from?
With Contract for Difference Brokers, sell trades can be placed( This involves borrowing a certain amount of currency from the broker and selling at a specific price).
This way, if the trades goes in the bearish direction, you make a profit and pay the broker their "spread".
Regular CFD brokers include FXTM, Hotforex, Deriv etc.
A stop loss on the other hand is a risk mitigation tool used by traders to close trades when price goes against them, this which are either buy or sell trades.
Using a stop loss traders no longer have to be there to close the trades manually, also it helps them set risk to reward ratios and remove emotions when closing trades.
I hope I have been able to answer you correctly sir.
How do you make profit from selling at a lower price?
You borrow BTC @ $34k and sell it @ $32k, where's the profit coming in from?