What is a CFD?
A Contract for Difference (CFD) is a derivative instrument that enables investors to speculate on the price movements of various financial instruments without owning the underlying asset. When trading CFDs, investors enter into a contract with a broker to exchange the difference in the price of the asset from the time the contract is opened to when it is closed. Unlike traditional forms of trading where investors buy and sell the actual asset, CFDs are leveraged financial derivative products that you can either profit or lose from both rising and falling markets.
How do I place a trade on CapPlace?
Placing a trade on CapPlace is as follows:
- Log in to your CapPlace trading account.
- Navigate to the trading platform.
- Select the financial instrument you wish to trade.
- Choose the direction of your trade (buy or sell).
- Enter the desired trade size.
- Set your stop-loss and take-profit levels if desired.
- Review and confirm your trade.
- Your trade will be executed, and you can monitor its progress in the trading platform.
What types of orders can I place on CapPlace?
CapPlace offers various types of orders commonly used in CFD trading, including:
- Market Order: Executes a trade at the best available rate on the Trading Platform.
- Limit Order: Executes a trade at a specified price or better.
- Stop Loss Order: Executes a trade when the market reaches a specified price.
- Take-Profit Order: Closes a trade when the market reaches a specified profit level.
What is leverage, and how does it work on CapPlace?
Leverage allows traders to open a larger position with a smaller amount of capital. On CapPlace, we offer various leverage options, up to 1:200, depending on the underlying asset and account types. This means that for every unit of capital invested, traders can open a position up to 30 times larger. It's important to note that while leverage may amplify both your potential profit and loss.
What are spreads?
A spread is the difference between the higher buy and the lower bid price of the financial instrument, like EUR/USD, or a equity shares. All CFDs offered by the Company have spreads which can be viewed in the Trading Platform. Spreads are dynamic and vary based on market conditions of the underlying assets.
How does the margin call process work on CapPlace?
A margin call occurs when the equity in your trading account falls below the required margin level to maintain your open positions. At CapPlace, when your account reaches a certain threshold close to the margin requirement, our system will automatically issue a margin call, to either deposit additional funds to cover the shortfall or close out some of your positions.
Can I trade on mobile devices with CapPlace?
Yes, CapPlace offers a mobile version of its trading platform, allowing traders to access the markets and manage their positions conveniently from their smartphones or tablets. The CapPlace mobile app is available for download on both iOS and Android devices.
What are the available trading platforms on CapPlace?
CapPlace offers two trading platforms:
- Webtrader: A web-based platform accessible from any internet browser, offering a user-friendly interface and a wide range of trading tools and features.
- CapPlace mobile app: A mobile application providing on-the-go access to the markets, real-time quotes, and account management capabilities.
How can I access market analysis and research tools on CapPlace?
CapPlace provides comprehensive market analysis and research tools directly within its trading platforms. Traders have access to a variety of tools for both fundamental and technical analysis, including:
- Economic calendars
- Price charts
- Technical indicators
- Market news and analysis
What is a Pip?
A Pip, short for 'percentage in point' or 'price interest point,' is a standardized unit of measurement used in forex trading to quantify changes in exchange rates. It represents the smallest price movement in a currency pair, typically equivalent to one basis point, or 0.0001 for most currency pairs. Pips are crucial for calculating profits and losses in forex trading and help traders determine the value of their trades relative to changes in exchange rates.
What is volatility?
Volatility refers to the degree of variation in the price of an asset over a period of time. It measures the rate and magnitude of price fluctuations, indicating the level of risk associated with an investment. High volatility suggests that the price of an asset can change rapidly and unpredictably, increasing the potential for both profit and loss.
