BUY a currency pair if you believe that the base currency will strengthen against the quote currency, or the quote currency will weaken against the base currency. 

Your profits will increase in line with each increase in the exchange price.

Each drop in the exchange price below its opening level will result in a loss.

FOR SALE a currency pair if you believe that the base currency will weaken in value against the quote currency, or the quote currency will strengthen against the base currency.

Your profits will increase in line with each point by which the price of the exchange rate falls.

Each increase in the exchange rate above its opening level will result in a loss.

Spread - FX pairs have two prices. 
The first price is the selling price (known as the bid) and the second price is the buying price (also known as the offer). The difference between the bid price and the ask price is known as the margin, and is basically the cost of the trade. 

4. Adding orders

An order is an instruction to automatically trade at a point in the future when prices reach a specific level predetermined by you. You can use stop and limit orders to ensure that you retain any profit and minimize your risk when your respective profit or loss risk targets are reached.

While not mandatory, given the volatility in the foreign exchange markets, it is essential to use and understand risk management tools such as stop-loss orders.

A stop-loss order is an instruction to close a transaction at a price worse than the current market level and, as the name implies, is used to help minimize losses. There are two types of stop loss orders: standard and guaranteed. 

A standard stop loss order Once activated, it closes the transaction at the best available price. Therefore, there is a risk that the closing price will be different from the order level if market prices soar. 

A guaranteed stop loss however, for which a small premium is charged on the trigger, guarantees to close your trade at the stop loss level you have determined, regardless of any market spacing.

A limit order is an instruction to close a transaction at a price better than the current market level and is used to help set price targets.

Standard stop losses and limit orders can be placed free of charge and can be implemented in the trade ticket when you make your first trade, and you can also attach orders to existing open positions. 

Learn more about risk management here .

5. Monitor and close your business.

Once opened, the profit and loss of your trade will now fluctuate with every movement in the market price. 

You can track market prices, view your unrealized profit/loss update in real time, attach orders to open positions and add new trades or close existing trades from your computer or app on your smartphone and tablet. 

6. Closing of your business.

When you are ready to close your trade, you simply do the opposite of the opening trade. Assuming you bought 3 CFDs to open, you would sell 3 CFDs to close. When you close the trade, your net open profit and loss will be realized and immediately reflected in your account cash balance. 

Please note that City Index's CIF accounts and CFD accounts are FIFO. For get more For more information, please visit our help and support section.