Trading Articles

How to Make Money Going Long or Short Selling in CFD Trading

How to Make Money Going Long or Short Selling in CFD Trading

Welcome to the world of CFD Trading! If you’re looking to understand how you can make money through either going long or short selling, you’ve come to the right place. Here, we’ll explore these concepts in a straightforward way, so you can get started with confidence. Plus, we’ll talk about how we at Xtreme Markets can help you in this journey.

What is CFD Trading?

CFD stands for Contract For Difference. This type of trading allows you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies, and treasuries. Essentially, you’re betting on whether the price of these assets will go up or down.

Going Long – What Does That Mean?

Going long is just a simple way of saying that you’re buying a CFD in the hope that the price of the asset will increase. For example, if you think the price of gold is going to go up, you buy a gold CFD. Here’s how you can make money from going long:

  • If the price of gold rises after you buy the CFD, and you decide to sell it, you will make a profit based on the increase in price.
  • Let’s say you buy a gold CFD at $1200 and later sell it when gold reaches $1250. The $50 difference per unit is your profit

Going Short – What’s That?

Going short is the opposite of going long. It means you’re selling a CFD because you expect the asset’s price to drop. Here’s how going short works:

  • Imagine you think the shares of a company are going to decrease in price. You would sell a CFD for those shares.
  • If the price does drop, you can buy the share CFD back at a lower price. Your profit is the difference between the selling price and the buying price.
  • For instance, if you sell a share CFD at $10 and buy it back at $7, the $3 difference is your profit.

Why Choose CFD Trading?

One of the biggest advantages of CFD trading, including in markets like forex trading, is that you can make a profit whether the markets are going up or down. This flexibility is a significant plus compared to traditional investing.

How Can Xtreme Markets  Help You?

At Xtreme Markets , we provide you with the tools and support needed to start trading CFDs in various markets like forex, commodities, and more. Our platform is designed to be user-friendly, making it easy for you to manage your trades. We believe in giving our traders the best possible chance to succeed in the fast-paced world of trading.

Education and Resources: We offer educational resources to help you understand trading strategies and market conditions.

Support: Our team is here to answer any questions and help guide you through your trading journey.

Tools: With advanced trading tools, you can better manage your trades and potentially increase your chances of making a profit.

Getting Started

Getting started with CFD trading at Xtreme Markets is simple. First, you’ll need to create an account. Once you’re set up, take advantage of our training resources. Spend some time practicing with a demo account – this will help you get a feel for how trading works without risking your own money.

When you’re ready, you can start trading for real. Remember, whether you decide to go long or short, the goal is to predict market movements to make a profit. It’s exciting and can be rewarding, but like all investments, it comes with risks. Always consider these carefully.

Whether you’re just starting out or looking to brush up on your trading skills, we at Xtreme Markets are here to help you every step of the way. Start your trading journey with us today and explore the possibilities in the world of CFD trading!