This means staying up to date with market sentiment and economic news to have an idea of what direction the market might be heading. ![]() Swing traders need to be aware of changing trends over a few days or weeks, as opposed to the small price movements over minutes or seconds. Therefore, unlike day traders and scalpers​, it is less crucial for swing traders to stay glued to their screens as you don’t need to constantly monitor quick price movements. Whereas swing traders could hold their positions for days or weeks at a time, day traders only buy and sell assets with the aim of closing their positions before the end of each day. Swing trading is seen as more of a medium-term trading strategy, whereas day trading applies only to the short-term. If the market moves in the opposite direction to your position, this will result in a much larger loss of capital, as it will reflect the full value of the position, rather than just the margin requirement. This is useful for traders who want exposure to a larger position size, but it is important to remember that profits and losses are equally magnified. We offer spread bets and CFDs, which are leveraged products that you can use with a range of short and long-term trading strategies, including swing trading. ![]() Choosing to keep the position open overnight on margin positions will also mean that traders may have to pay a holding cost, depending on the direction of their trade and the applicable holding rate. The margin requirement will vary depending on the asset that you want to trade, but can start from as little as 3.3%. This means that you only need to deposit a percentage of the full value of the trade to open a position and gain exposure to the financial markets. When swing trading on our platform, traders are required to trade using margin, also referred to as leverage.
0 Comments
Leave a Reply. |