3. Opening a position
Once you’ve decided which market you’d like to trade you should be ready to open your first position. Trading an IG CFD means you can adjust your expiry, deal size, trade direction and any stops or limits.
Before you open your position, you can decide how long you might want to keep it open for. A cash CFD is designed for short term trading, and will incur an overnight funding fee if you want to keep it open after the end of the trading day. Forward contracts are available with different expiries, and will have all overnight funding charges built into the spread.
You can also choose how many CFD contracts you’d like to trade. The value of a single CFD contract changes dependent on the market, and is measured in contract size per point. As well as full contracts, we also offer mini-contracts on several key markets – so you can be as prescriptive about the size of your position as you need.
Buy and sell prices
We’ll always quote two prices on a CFD position, called the buy and sell price. You can trade at the buy price if you want to open a long trade, and at the sell price if you want to open a short trade.
The difference between the two prices is called the spread. Most trades with IG Bank are charged via the spread: with the exception of shares, which incur commission.
Stops offer a way of limiting the potential loss you can incur from a single trade by automatically closing your position once it hits a certain level. We offer a range of stops – including basic, guaranteed and trailing – to give you full control over when you exit your trade.
Alternatively, you can close your position manually by trading in the opposite direction to how you opened it. So if you opened your position at the buy price, you’d close at the sell price. Open at the sell price, and you close at the buy price.