Trading CFD shares has become an increasingly popular way for investors to access global stock markets without the need to purchase physical shares. VT Markets, a trusted and innovative broker, provides a seamless platform to trade CFD shares with tight spreads, advanced tools, and a user-friendly interface. Whether you’re a beginner or an experienced trader, this guide will walk you through everything you need to know about trading CFD shares with VT Markets.
CFD (Contract for Difference) shares allow you to speculate on the price movements of company stocks without owning the underlying assets. When you trade CFD shares, you enter into an agreement with your broker to exchange the difference between the opening and closing price of a stock.
For instance:
Trading CFD shares provides access to both upward and downward market movements, offering flexibility and opportunities in any market condition.
VT Markets allows you to trade CFD shares from leading stock exchanges worldwide, including:
With leverage of up to 500:1, you can trade larger positions with a smaller initial investment. For instance, a $1,000 deposit can control up to $500,000 worth of positions. However, remember that leverage amplifies both potential profits and losses.
Unlike traditional share trading, CFD shares allow you to profit from both rising (long) and falling (short) stock prices, giving you more ways to capitalise on market movements.
VT Markets provides access to extended trading hours, allowing you to react to global news and events outside regular market hours.
Step 1: Open an Account
Visit the VT Markets website and sign up for an account. Choose between a Standard STP or Raw ECN account based on your trading preferences.
Step 2: Fund Your Account
Deposit funds using VT Markets’ secure payment options, such as credit cards, bank transfers, or e-wallets like Skrill and Neteller.
Step 3: Choose Your Shares
Browse through VT Markets’ extensive list of shares from global markets. Select the shares you wish to trade based on your market research and analysis.
Step 4: Start Trading
Log in to VT Markets’ advanced platforms like MetaTrader 4 (MT4), MetaTrader 5 (MT5), or the proprietary mobile app. Monitor price charts, conduct analysis, and execute trades seamlessly.
Identify long-term price trends using technical indicators like moving averages and RSI. For instance, if Apple’s stock shows a consistent uptrend, opening a long position could be a profitable strategy.
Stock prices are heavily influenced by news, such as earnings reports, product launches, or market sentiment. Stay updated with VT Markets’ market insights and act swiftly during major announcements.
Spread your risk by trading shares across multiple sectors and regions. For example, combine technology stocks like Google with healthcare shares such as Johnson & Johnson for a balanced portfolio.
For traders looking to capitalise on intraday price movements, scalping and day trading strategies can be effective. VT Markets’ low spreads and fast execution speeds are ideal for short-term trading.
Use CFD shares to hedge against risks in your existing stock portfolio. For example, if you own physical shares of Tesla, opening a short CFD position on Tesla can offset potential losses during price declines.
Understanding chart patterns becomes even more practical when applied to popular shares. Let’s align each pattern with real-world examples to make it relatable for beginners trading Stock CFDs.
This pattern signals a trend reversal and often appears in shares nearing their peak.
Example:
Imagine trading Apple (AAPL) CFDs. If AAPL forms a “head and shoulders” pattern after a long uptrend, it may signal a bearish reversal, indicating a potential drop in its share price. A break below the neckline could provide a selling opportunity.
A Double Top signals a bearish reversal, often seen when shares fail to break through resistance.
A Double Bottom suggests a bullish reversal, commonly found after shares hit a support level twice.
Example:
A Double Top may occur with Tesla (TSLA) CFDs after a strong rally. If TSLA struggles to break above a key price level twice, it might indicate an impending price drop.
Conversely, a Double Bottom on Meta (META) shares could hint at recovery after testing a critical support zone twice.
This bullish pattern signals potential breakouts in shares with steady upward momentum.
Example:
Trading Amazon (AMZN) CFDs could showcase an ascending triangle as the stock repeatedly hits a resistance level while forming higher lows. This pattern might indicate an upcoming bullish breakout, presenting a buying opportunity.
Both are continuation patterns, meaning they indicate the existing trend is likely to continue after a brief consolidation.
Example:
If NVIDIA (NVDA) shares are in an uptrend, a flag or pennant pattern might form during a short pause in price movement. These patterns could signal that NVDA will resume its upward climb, offering a good entry point.
This bullish pattern often forms in shares with consistent growth and investor confidence.
Example:
Imagine Microsoft (MSFT) shares forming a “cup” with a rounded bottom, indicating a gradual recovery. After a small dip (the “handle”), the breakout above the handle’s resistance could signal strong bullish momentum.
MetaTrader Platforms
Access MT4 and MT5 for advanced charting, technical analysis tools, and customisable layouts.
Mobile Trading App
Trade on the go with VT Markets’ proprietary app, offering real-time updates and one-click trading.
Educational Resources
VT Markets provides tutorials, webinars, and market insights to help you make informed trading decisions.
Risk Management Tools
Use features like stop-loss and take-profit orders to protect your investments.
CFD shares allow you to speculate on stock price movements without owning the shares, while traditional shares involve physical ownership. CFDs offer leveraged trading and the ability to profit from both rising and falling markets.
Withdrawing funds from VT Markets is straightforward. Log in to the Client Portal, submit a withdrawal request, and your funds will be processed promptly.
CFD shares trading aligns with the trading hours of the underlying stock markets but often includes extended hours for certain markets.
No, VT Markets is transparent about its fees, offering tight spreads and no hidden charges.
VT Markets provides a comprehensive and secure platform for CFD share trading, catering to traders of all experience levels. With access to global markets, competitive trading conditions, and cutting-edge tools, VT Markets empowers you to capitalise on opportunities and manage risks effectively.
Ready to start your CFD share trading journey?
Open an account with VT Markets today and explore the endless possibilities of trading global shares with confidence!
Official partners:
