This article is also available in: Spanish(Español)
Wether you are an experienced trader or relatively new to this markets, you can easily set up an account and benefit from this large investment universe.
HOW TO OPEN AND OPERATE A MARGIN ACCOUNT IN ALTEUMX:
- Create an AlteumX account.
- Click on the “CFD Trading” section in the top menu.
- Inside you margin account, click on “Deposit” and fill out all of the required information.
- Wait for the final verification of the KYC process. KYC verification process might take up to 72 hours.
- Fund your AlteumX margin account with Bitcoin. AlteumX requires a minimum of 20 dollars deposit to start operating
- Start trading!
CFD TRADING STEPS
- Choose a market
Decide which market you want to trade on - Decide to Buy or Sell
Click ‘Buy’ if you think the price will increase in value or ‘Sell’ if you think the market will fall in value - Select your trade size
Set the amount you want to trade and the leverage level of the position.
CFDs are traded on the base currency value of that contract. - Add a Stop-Loss amount
A Stop-Loss is an order to close your position out at a certain price, this is used to limit the amount of loss within the positions if the value moves too far against the entry price. - Monitor and close your trade
Once you have placed your trade, you will see your Profit/Loss update in real time at the bottom of the screen. You can exit your trade by clicking on the Close Trade button
WHEN TO BUY (Go Long) OR SELL (Go Short)
There are a few important factors to take into account before deciding to Buy or Sell. First you need to know the current price which is shown at the left side of the screen. Also, AlteumX margin accounts have a real time browser-based charts that provide all the necessary trading charting tools to incorporate trade planning.
After making an analysis:
If you expect the price to go up: Go Long (buy)
If the price is expected to go down: Go Short (sell)
We strongly encourage all traders to remain up to date on the news and global events that may influence certain fluctuations in the markets.
LEVERAGE
CFD trading is a leveraged product which means you only need to have a small percentage of the overall trade value, known as margin, in your account in order to open the trade. Generally speaking, the larger the value of your trade, the more margin is required for the position. It is important that you have sufficient funds in the account to place the trade.
STOP-LOSS AND TAKE-PROFIT TOOLS
Risk management is one of the most neglected issues in margin accounts and one of the most important, since the chances of portfolio survival and market success depend on it. There are tools such as Stop-Loss (SL) and Take-Profit (TP) that allow a trader’s operations to be automatically closed when any of the primary conditions are met.
Stop Loss
Example. You place a Buy Order in EUR / USD at 1.22639, speculating that the price will go up. However, the opposite happens and the downward trend begins. By using the Stop-Loss tool, you can set a 1.20000 Exit Price, at which the trade must close automatically, preventing the loss from becoming greater if it remains opened.
Take Profit
The Take-Profit tool has a similar function. When you place a Buy Order you can use Take-Profit tool to set a limit and protect the trade against volatility.
Example. By placing a Buy Order at 1.08787, expecting the price to go up, you can use Take-Profit tool to set a 1.11000 objective so when it reaches that value, the order closes automatically. The price may continue to rise, but it is also possible that it may begin to fall. If it were to go down, and this order were to remain opened for a longer period of time, it could represent a loss instead of a possible gain.
WHEN IS A GOOD TIME TO CLOSE AN ORDER?
It is up to you to determine when to place or close an order, but there are several considerations to take into account before doing so, in order to make sure the correct process is being followed.
On your screen, you will be able to see all of your open orders. Within each order, the current Profit/Loss amount is shown depending on the state of the market, alongside a direct comparison to its Entry Price. The Profit/Loss amount is not fixed, as it will change every time there are variations in the market.
Whenever you decide to close (or exit) an order, it is important to take into account that at that moment there could be a price change that could affect the final amount shown.
WHAT ARE THE COSTS OF CFD TRADING ON ALTEUMX?
Deposits and Withdrawals: AlteumX does not charge a fee for deposits and withdrawals in Margin Accounts.
Trading fee/Spread: The trading fees are calculated on the Spread of each market. The Spread is the difference between the Bid (Buy) and Ask (Sell) prices and reflects the cost of opening or closing a position. The Spread depends on several factors, including(but not limited to): the underlying liquidity and volatility, time of day, and notional trade size.
The narrower the spread, the less the price needs to move in your favour before you start to make a profit, (or a loss if the price moves against you.)
At AlteumX, we offer consistently competitive spreads.
Balances: Trade safe in the knowledge that any trading losses cannot exceed the funds in your margin account.
Margin Account balances are not related nor connected to your crypto wallet.
OPERATING HOURS
AlteumX allows traders instant exposure to major global markets, therefore users will be able to place orders at any time of the day, with online support 24/7.
For Forex markets, we strongly recommend to verify forex trading hour clock.
Business Day: means a day when the clearing banks in the City of London are open for business, excluding Saturday, Sunday and public holidays.
SECURITY
We have developed an advanced security system specifically designed to protect your investments.
To access your account through a more secure process, you can activate our Two-Factor Authentication (2FA) feature.
Account > Settings >2FA Authentification
(CFDs are complex financial instruments and have a high risk of losing money quickly due to leverage. You should consider whether you understand how CFDs work and whether you can afford to take on the high risk of losing your money)
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