Breakouts on CFD´s

[guibraga]

Hello !

I´m new to CFD´s and never trade them yet.
I have one question for those who are close with CFD´s.

Let´s say the stock AAA is trading at 50,00 and I wanna buy if reaches 51,00 ok?
so... if I put a stop order to buy CFD AAA at 51,00 ... Ám I wrong, or can I buy the CFD and the stock never reaches 51,00 ???

I don´t know if I was clear.

Thanks a lot !
Guilherme

 

[Vaco]

I would suggest you read the help file for the particular software that you are using before placing any trades and if possible ask your cfd provider if you can trade the software on a dummy account befeore going live.

In most cases a stop order will only be triggered if the price action hits it, however bear in mind that the spread on cfds is greater then the underlying market so it is still posiible to get filled when the price has not been hit.

 

[sidinuk]

If you place a buy stop at 51.00 when the price is 50.00 then it will only be filled if the price reaches 51.00.