Position Trading

Position trading is a strategy in which traders and investors aim to capitalize on strong pricing trends by entering and maintaining positions in the market for an extended period. Position trading involves a commitment of both time and capital, with the goal of realizing substantial gains from the sustained growth of an open position's value.

 

Elements Of A Position Trade

 

MARKET ENTRY

In any trading strategy, entering the market in a controlled, consistent, and structured manner is critical for sustainable profitability. Given the extended duration of position trading, market entry decisions are primarily based on fundamental analysis. While technical analysis may be used to refine entry points, understanding macroeconomic factors is a significant part of identifying a product's long-term growth potential.

 

TRADE MANAGEMENT

Effectively managing an open position in the market can be a challenging task. Markets often experience rapid fluctuations, resulting in significant swings in a position's value. Having a well-defined management plan that dictates when and how to exit a trade is crucial for realizing profits or managing losses. Various strategies, including break-even scenarios and scaling out of a position, can be employed to manage trades effectively.

Direct Market Access Pricing

CDF TRADING

 

Through trading CFDs, investors can access the benefits associated with owning a security without actually owning it. CFDs enable investors to take long or short positions, speculating on the future price movements of underlying assets. Alternatively, these contracts can be used for hedging purposes to protect investment portfolios.