CFD Trading Long and Short and CFDs Charts

In cfds trading, there are two types of cfd trades, these are:

• Long (buy) - long is if the cfd trend is buy/bullish.
• Short (sell) - short is if the cfd trend is sell/bearish.

Buying/Long and Selling/short in CFD

Both terms in CFD, refer to things we do when open a cfd trade transaction.

Buying Long - cfd term to use when buying and when opening a cfd trade transaction.

Selling short - cfd term to use when selling and when opening a cfd trade transaction.

Long - Long is another term used to refer to buying in cfd, If a trader goes long it means that he buys the cfd instrument that is heading in an upward trend direction. When the cfd price is moving in an upward cfd trend the trend is referred to as bullish cfds trend.

Short - Short is a term used to refer to selling of a cfd instrument that is going in a downward trend direction. When the cfd price is going downwards then it is referred to as a bearish cfds trend.

Basically the term, "selling short" can be refer to selling in the cfd markets. Selling short is used to transact a cfd instrument that is predicted to depreciate in value compared to another, when this cfd instrument is sold then it is the same as not holding value in this cfds and holding the same value in another form against which this cfd instrument is traded against - mostly US Dollars.

Buy/Long

If the cfd price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the cfd market cfd trend is going up it is referred to as bullish, this is when a buy cfd trade is placed. A bullish cfd trend is identified by drawing an upward cfd trend-line on a cfd chart. The example explained and illustrated below shows a long/buy signal.

Buy/Long

Sell/Short

If the cfd price pair is going down we sell, this is referred to as going short. When the cfd market cfd trend is going down it is referred to as a bearish. The example explained and illustrated below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward cfd trend-line on a cfd chart. The example explained and illustrated below shows a short/sell signal.

Sell/Short - CFD Buy Trade and CFD Sell Trade

CFD Charts

A cfds trading chart provides a visual representation of cfd prices (drawn on the y-axis) against time (drawn on the x-axis) for cfd. The movement of cfd prices is drawn on these cfd charts. The cfd chart can be drawn as candlestick charts like the one below or as line charts or bar charts.

CFDs Chart - Candles Charts

The three common types of cfd charts used in cfds trading are:

• Candlesticks Charts
• Line Charts
• Bar Charts

These 3 are explained in the topic CFDs Chart Types.

CFDs Platform

This is the cfd software that is provided by a broker to help cfd traders place their cfd transactions. Once you download and installs this cfd software on your computer you can then begin to trade in the CFD market. All cfd trade transactions are executed through this cfd platform. If you want to learn a cfd platform, MT4 CFDs Platform is a good cfd platform to start with.

To set these cfd orders, open MT4 CFDs Platform, open a 'chart', right click on the "chart', select 'New Order', then select cfd order either sell or buy as shown below. (Short Cut Keyboard Keys - Press F9 Key)

Setting Buy Long CFDs Order and Sell Short CFDs Order in MT4