cfd's any traps i should know?, page-4

Wiza I have only just started trading them and it seems to be a minefield!

But risk management is the biggest thing-

I wouldn't invest anymore than 10% of your capital as margin,3-5% if your only just starting out to give you room for error.

The % you risk is also subject to how risky the trade is too.

Fixed stops at equal and opposite.Meaning equal amount of shares/contracts at the opposite type of trade(long/short).

When you put on a limit order try and round the number off.Ie $5.10 instead of 5.13,that way your bid will have less chance of being "skipped" over.

Make sure you have a understanding of how to calculate your orders(indices and commodities are calculated different to shares).

Further more on that point make sure you calculate orders from the correct margin percentage.

There would be plenty more but just can't think off anything at the moment.

I stuffed up my first order.Or CMC did!I wanted only just $300 margin but was calculated wrong and and the margin got calculated at $1250,at the moment alls well because I'm at a profit.

Cheers