How can I manage my risk when trading CFDs?
TabTrade is not able to provide any personal financial advice about the suitability of any specific strategies or risk management methods. Managing risk on your trading is an individual process that you will need to consider as part of your strategy.
However, there are tools available for you to manage your risk within your own chosen strategy, which can include:
limiting leverage and position size relative to your account balance;
using stop-loss orders where appropriate;
avoiding over-concentration in a single market or event; and
planning your risk per trade and per day before you enter positions.
No tool can eliminate risk completely, but a structured approach can provide you ways to manage it.
What is the difference between a stop and a limit order?
These order types are both ‘pending’ orders that can be set away from the current market price, but the logic for where they can be set relative to that price differs:
A stop order is an order to enter or exit a trade at the next available price should a specified market price be reached. A stop order can only be set where the specified trigger price is less favorable than the current market price at the time the order is placed. This order type is often used to exit losing trades or enter new trades on breakouts.
A limit order is an order to enter or exit a trade should a specified market price be reached. A limit order can only be set where the specified trigger price is better than the current market price at the time the order is placed. A limit order sets a specific price or better at which you want to buy or sell. It’s often used to enter at a better price or to trigger take-profits at a target. Please note that because we prefer to avoid the disappointment of take-profit orders and entries being rejected, we adhere to the common practice in the industry of executing limit orders at the next available price, rather than enforcing a fill must be at or better than the trigger price.
Both are useful risk and entry tools, but they behave differently in fast markets and around gaps where slippage may depend on multiple factors.
Do you offer guaranteed stop-loss orders?
Currently we do not offer guaranteed stop-loss orders. All stop-loss orders depend on market liquidity to fill, which means we cannot guarantee a certain fill. Please ensure your trading accounts for the possibility of market gaps and low liquidity conditions resulting in either negative or positive slippage compared to your requested price.
Do you provide educational resources (trading guides, videos, webinars, courses)?
Giving you the resources to learn and improve your understanding of trading and markets is important to us. Whilst we are unable to provide suggestions on how to trade profitably, we offer general information for educational purposes.
Visit our Support Site for resources to understand trading with TabTrade as well as links to further education about markets and trading. You can also find some helpful tools on our website, such as our economic calendar to give you notice of upcoming events.
Can you teach me how to trade or trade on my behalf?
TabTrade is known as an execution-only broker. We are not able to provide any personal financial advice about the suitability of any specific trading strategies or methods. We are only able to offer general advice on our products and services. We can only provide the tools for you to trade with, but not how to use them profitably.
If you are not confident to trade yet, you can create a free demo account to trade in a simulated trading environment. This is a safer way to learn how to trade, and take your time understanding the markets before risking real funds.