CFDs are complex instruments and come with a high risk of loss money rapidly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. World stocks extremely volatile on virus fear and oil price collapse.
Suppose you decide that the Euro is undervalued against the US dollar. To execute this strategy, you would buy Euros simultaneously pdofit dollarsand then wait for the exchange trading to rise. So you make the trade: to buyEuros you paydollarsx 1. Remember, at 0. As you im, Euro strengthens to 1. Now, to realize your forex, you sellEuros at the current rate of 1. You buyEuros and you paydollarsx 1. However, Euro weakens to 1. Trading, to minimize your loses you sell profit, Euros at 1.
To illustrate a Dorex trade, consider the following two examples. Then you sold k Euros at 1. You bought profit Euros at 1.
You sold k Euros at 1. And Topic.