Basic Knowledge to Trade

Bài học 2  Buy and Sell (Trade)

Buy and Sell

IUX is a financial asset trading platform in the form of Contracts for Difference, or CFDs.

It provides two trading services: IUX Trade and IUX Invest.

IUX Trade offers you the following 4 account types:

  • Standard,
  • Standard Plus,
  • Raw,
  • Pro.

And what IUX Invest offers you is:

  • Real Account

 

By trading CFD assets, you can benefit from both upside and downside.

Which assets you choose to buy or sell is important to creating efficiency in your portfolio and making your profits.

 

Trading financial assets, all you need to know are the following main topics: 

  1. Long (Buy)

  2. Short (Sell)

  3. Bid Price and Ask Price.

 

What is Long (buy)?

Long (buy) is opening a contract to purchase an asset with the expectation that the asset price will increase.

 

What is Short (Sell)?

On the other hand, Short (Sell) is opening a contract to sell an asset with the expectation that the asset price will decrease.

 

Why must it be Long (Buy) and Short (Sell)?

The term "long" refers to "buy" and is used in stock trading because, in comparison to short positions, it takes a "long" period for the price to move higher. This helps to explain why the term is used.

 

Regarding Short, it originates from a comparison and implies "Sell". that there will be a significant selloff in a brief amount of time. When the selloff happens, the graph will rapidly run down.

 

What are the Bid Price and the Ask Price?

  • The amount that a trader proposes to pay for an asset at a specific price is known as the “Bid price”.
  • The price at which a trader offers to sell an item at a specific price is known as the “Ask price”.

And the difference between the bid price and the ask price is called “spread”.

 

How do the terms "buy" and "sell" relate to the bid price and the ask price?

In the case of Buy Position

When you open a buy contract, you buy at the bid price and close at the ask price.

 

In the case of Sell Position

When you open a sell contract, you sell at the ask price and close at the bid price.

 

Example of Buy and Sell orders in IUX Trade

1. Select the appropriate account type for your needs.

2. Choose your leverage.

3. Enter trading password.

4. Decide how much you want to invest.

 

Next:

  • You choose to invest in the desired asset, such as XAU/USD (gold), and click Trade.

  • Select the Market Execution or order action you want.

  • Choose Lot Size

  • Select “Stop Loss” or “Take Profit”

  • Select “Fill or Kill” or “Immediate or Cancel”

  • Click Buy or Sell.

Once you open a position, your position or order will appear in the Portfolio.

 

Overall, IUX Trade provides you with a large selection of trading accounts. Which varies according to the needs and suitability of the trader.

The ask price line and the bid price line are crucial for both buying and selling in this context; this enables you to essentially open a contract at the price that you want.