Find out everything you need to know about how to trade ripple (XRP) CFDs – including how the cryptocurrency works, what affects its price, the difference between trading and investing, and four steps to opening your first position.
Before you open your first CFD trading position, you’ll need an account with a leveraged provider. You can set up an IG account in a few minutes, and there’s no obligation to deposit any funds until you decide you want to place your first trade.
As you’re speculating on ripple’s price movements, instead of buying it, you don’t need an exchange account – or any specialist software – to get started.
At this point, you might also want to consider employing a trading strategy. Day trading, for example, involves taking advantage of short-term price movements and closing each position at the end of the trading day. Swing traders, meanwhile, will try to open a trade as a trend is forming, and close it once the move has run its course.
You’ve learned how ripple works and the factors responsible for driving its price movements – but before you open your first trade, you’ll still need to ensure that you’re aware of all the latest developments surrounding XRP.
At this point, you might also want to consider using technical analysis to decide when you should open your trade. Take a look at an XRP chart to see data on previous price movements, and identify trends that could give an insight into where it’s headed next.
Enter the size of your position in the deal ticket. This will determine your total profit or loss. You can also add a stop, which will close your position if the market moves against you by a certain amount.
If you expect ripple to go up in value, then hit ‘buy’ to open the trade. If you think it will fall, hit ‘sell’.
To close your position, you simply reverse the original trade. So if you bought to open, you’d sell to close. If you’d sold to open, you’d buy.
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