CFD Trading Order Types: What You Need to Know

CFDs (Contract for Differences) allow you to trade without having to own the underlying asset, plus you don’t have to pay the full amount in advance. You can trade CFDs by paying a small margin that is the percentage of the trade’s total value.

These are of some of the many distinct features of a CFD that make it stand apart from other tradable contracts in the market. Adding more to its popularity are the order types that make CFD trading more lucrative in terms of risk management. As the term suggests, CFD orders are actually orders or instructions that you give to your broker for performing a specific trade.

The following is a brief description of the popular CFD trading order types:

CFD Market Order

This is the most basic type of CFD order. A CFD market order enables you to advise your financial services broker to buy or sell the underlying asset at the best available current market price.

CFD Limit Order

A CFD limit order is an order to buy or sell the underlying asset at a specific rate called the limit price. A CFD limit order is grouped in the following two categories:

Limit Order To Buy: Suppose a company’s CFDs are currently trading at $15 per share. You can pass a limit order to buy the CFD of that company if the value falls below $14.50 per share. Here $14.50 is your limit price.

Limit Order To Sell: Continuing with the above example, let’s suppose you already have CFDs of the company that you intend to sell only if you get $16 per share. Here you can pass a limit order to sell the shares if the market price rises up to or above $16.

CFD limit orders are also used in forex trading.

CFD Stop Order

A stop order works in a similar manner as the limit order. A stop order enables you to set a stop price and instruct your broker to execute the trade if the market price reaches the stop price. Once it does, the stop order becomes the market order. Stop orders, also known as stop-loss orders, are frequently used in CFD, forex, and commodity trading. Stop orders are usually used by passive investors who hold an asset portfolio but can’t spare enough time to monitor the market and trade actively.

Let’s suppose you are one such investor who bought a lot of a company’s shares at $10 per share. The share price is on an increasing trend and went up to $20 within a month. However, you do not want to take any risks with it, considering the volatility of the market. In this case, you can place a stop order and ask your broker to sell the shares if the market price reaches $15 per share. In simple terms, you stop the broker from holding the CFDs or shares any further, provided that the price takes on a bearish trend. It means that regardless of the market conditions and the company’s performance, you will get at least $5 per share above your initial investment.

There are several other types of CFD orders like trailing stop, contingency order and if done orders; however, these are rarely used in CFD and forex trading. The most popular and useful CFD orders are the ones mentioned above. Summing up, CFD orders allow you to hedge your loss and minimize the risk in highly volatile markets.

How to Make Money With A Forex Affiliate Program

Forex is the largest, the most transparent and the most liquid financial market in the world today. It has a US$ 6 trillion daily trading volume and is thirty times the size of the New York Stock Exchange. The pace of growth has been frantic in the past decade and the market only continues to grow. The opportunities and possibilities for profit are tremendous and not just by trading Forex. There are other ways of earning from the world of Forex and of the most popular and effective method is that of Forex affiliate programs.

Forex Affiliate Program: The Definition

A Forex affiliate program is a basic referral program offered by Forex brokers as a way of increasing their client base. The increasing competition in the Forex market has left brokers scrambling to find new clients. They have come up with business models known as Forex affiliate programs as a solution to this problem, offering rewards to affiliates who refer investors willing to trade on the broker’s trading platform.

The Process

There is huge potential for earning money as a Forex affiliate and this potential only continue to grow. The Forex market provides opportunities for profit in both rising and falling markets, making sure trading doesn’t come to a halt because of political crises, economic instability or natural disasters. As such, a Forex affiliate will always be generating income from the trades executed by the client they introduced to the broker.

Forex affiliates procure clients for brokers by promoting them through their own websites or running advertising campaigns. These clients are introduced to the world of Forex and then referred to brokers. The affiliate has access to a broker provided the link that keeps track of all client referrals and calculates the affiliate’s earnings, which are generated as a commission for the client’s account activation and on all the revenue produced by the client’s trading activities.

Forex affiliates earn money every time a demo account is registered by a client they referred to the broker, and/or even more money when a real account is registered and reaches a particular amount of deposits. Most Forex brokers allow a specific portion of spreads to their affiliates for every trade executed by a referred client.

The Benefits

As with most things, timing is everything when it comes to Forex affiliate programs. The Forex market is still in its expansion phase, making it the perfect time to set up as a Forex affiliate and establishing a steady source of income. Affiliates continue to earn from a client as long as said client keeps trading with the broker they were referred to, and as income is generated per trade, the potential profits are tremendous.

The Forex market never sleeps, making it easy for affiliates to attract investors who can only trade at certain times of the day. It involves both buying and selling of currencies, facilitating profitable trades in both rising and falling markets, making it even more attractive for potential traders. The liquidity, transparency, and ease-of-access combine to make Forex practically irresistible and vastly profitable for Forex affiliates.

Exploring Automated Forex Trading Systems

Automated forex trading systems are platforms through which foreign currencies are traded using a software application that is designed and programmed according to an algorithm that will help you decide if you should purchase or sell currency at any instant. The program makes decisions on the basis of signals that have been derived by technically analyzing the various charting tools available. The signals can then indicate a purchase or sale if their direction is the same.

There are several automated trading forex systems that can be accessed online through the internet. Generally, these programs are used by traders who are extremely active in the field.

History of Automated Forex Trading Systems

Forex auto-trading originated in the late 1990’s from retail trading, which was executed through the internet. At that time, online companies started creating forex trading platforms so that individuals could purchase and sell currencies faster than before.

However, forex auto-trading was in use even before this period by large retailers but was not so popular back then. Even in the 1970’s, these companies could auto-trade their contracts at Chicago’s Exchange.

Types of Automated Forex Trading Systems

Forex auto-trading can be divided into two major types.

Fully Automated Forex Trading

Fully automated forex trading is also referred to as robotic trading. This type of forex trading can be regarded as black box trading in which a programmed algorithm makes decisions by considering factors such as price, quantity, and timing. The order is then initiated automatically. In fully automatic trading, interference from a user is limited in the sense that a user can only modify the technical parameters. The rest of the control is handled by the program itself.

Signal Based Forex Auto-trading

In signal based auto-trading, the orders are manually generated with the help of a trading system. All the traders from across the globe share their strategies with every individual, and if someone is interested in them, then they can use them as signals. The traders can execute these Forex signals into their accounts if they wish.


A forex auto-trading system is capable of generating more trades in a market when compared to a human trader. If manual trading is used, then it takes time to handle trades and replicate their actions across multiple time frames and markets. Forex auto-trading can accomplish this same task in a shorter time period. Moreover, a human trader is often affected by physiological swings, but these have no impact on an automated system. The significance of this advantage is prominent when a mechanical mode, which has been developed on the assumption that flagged entries will be considered in real time, is traded.

Another benefit of auto-trading is the fact that the traders involved do not need deep knowledge in the field. They can trust any system that has performed well in the past. Thus, many individuals can use the forex trading system.


Forex auto-trading is an unregulated and decentralized market, which lures potential scammers. Thus, frauds are not uncommon, and care should be exercised. Organizations such as the U.S. Securities and Exchange Commission are trying to minimize this to the lowest possible extent.

An Introduction to Online CFD Trading

CFD (Contract for Difference) trading has become a highly popular trading technique amongst retail traders in recent years. Most forex brokers now offer Online CFD Trading as part of their repertoire of trading instruments, which is usually broken down into futures trading, commodity futures, indices and stock trading.

What are CFDs?

CFD Trading enables traders to open positions with certain assets, such as commodities or market indexes, allowing them to speculate on movements in the underlying market. Profit or loss is calculated from the difference between the buying price and selling price.

Contrary to traditional forex trading, the investor does not actually own the asset, which automatically eliminates any stamp duty fees, commissions or other fees. As a result, CFDs are an ideal way to achieve portfolio diversification.

What are the Advantages of Trading CFDs?

Online CFD Trading offers a range of unique advantages to traders. If used correctly, it can be an ideal solution for traders as it provides the opportunity to leverage all returns. This means that CFDs can be traded with a small initial deposit, while offering the opportunity to generate excellent returns, provided leverage is used cautiously.

In addition, regardless of which direction the market is heading in, investors can make a return as trading success is not dependent on the direction of the underlying markets. Since Online CFD Trading can be performed on a range of instruments, they naturally incur a more diverse trading portfolio.

In particular, CFD trading typically offers lower transactional costs. While stock trading occasionally incurs a stamp duty, this is not the case with CFDs. Moreover, trading can be executed on a low-commission basis, which can greatly benefit active traders.

Finally, CFD trading can be executed alongside other forms of trading, such as forex trading or precious metals trading, for a convenient trading experience.

Risks Involved When Trading CFDs

Despite the upsides, there are a number of factors to bear in mind when doing Online CFD Trading through any forex broker. First of all, if you have decided to hold out for a longer-term period on your CFD trade, then overnight fees for holding long positions can begin to build up.

In addition, as you are trading with fairly high leverage, there are heightened chances to experience a huge loss of funds when trading. Finally, Online CFD Trading is a highly volatile activity as prices are very likely to move in an unexpected manner. Though trading opportunities will become more diverse, trading risks are also augmented. Investors must always assess their risk management capabilities before trading CFDs.


Trade CFDs Trading, Confidently & Comfortably


Trade Forex Anywhere with IMMFX Mobile Phone Trading Platform

Over the last five years, forex trading has become massive. In fact today, it is the most sought after and liquid financial trading market. The great news is that now you can trade Forex with IMMFX Mobile Phone Trading Platform.

The high trading volume, no geographical or time constraints, and abundant profit maximizing opportunities have made traders shift from traditional equity markets to the forex markets. In fact, even those people who already have a day job, and are seeking an additional source of income are also actively participating in forex trading.

Thanks to the latest technological advancements, now you can download revolutionary trading platforms like MetaTrader 4 with IMMFX and enjoy the ultimate forex trading experience from the comfort of your home or on the go using immfx Mobile Phone Trading Platform.

What is MT4 Mobile Phone Trading Platform?

MetaTrader 4 or MT4 is a user-friendly, secure and leading forex trading platform. It’s easy to use and its customizable features enable both novice and professional traders to engage in hassle-free trading.

MT4 offers functions like automated trading that enables you to set parameters for Expert Advisors, which are like robots. The EAs monitor the market movement all the time and make trading decisions automatically for you as per your specified parameters.

Furthermore, MT4 offers a mobile trading feature that has made it even more popular among traders. The MT4 mobile trading option enables you to trade from anywhere at any time with ease and flexibility. With MT4, you don’t have to wait to get back home and make trading decisions. You can actually make decisions and engage in profitable trading through your mobile phone while you are on the move.

MT4 Supports a Variety of Mobile Platforms

The MT4 platform supports a variety of mobile platforms, including iPhone, iPad, Android and Windows mobile.

The MetaTrader 4 trading platform has definitely taken forex trading to a new level. The mobile application feature allows traders to not only access the forex market on the move but also perform technical analysis using effective built-in forex indicators to speculate on market swings in order to make timely trading decisions.

If you are trading on the go through your mobile using the MT4 mobile application, you can enjoy the same forex trading capabilities as you would on a desktop platform. With the MT4 mobile application, you can:

  • view live currency prices
  • open, close and modify orders
  • generate trade activity reports
  • stay up to date with the latest forex market news
  • take advantage of real-time trading opportunities
  • keep an eye on your trade position and adjust stops if needed

The MT4 mobile application frees you from being tied to your desktop or carrying laptops to participate in the forex market. With MT4, you never have to miss any lucrative trading opportunities.

However, to enjoy the maximum benefits of trading forex with the MT4 platform, it’s always best to open a demo account to gain experience and learn about its functions and special features. Once you fully understand its features, you can open a live forex trading account and start trading for real!

Download your IMMFX Mobile Phone Trading Platform now and enjoy your forex trading career even on the go.