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ELby u/emily_lee·1moQuestion

CFD sizing - how much is too much on a single name?

Still getting my feet wet with CFDs after mostly spot forex for years. I understand the leverage is insane, but beyond just not blowing up my account on one trade, how do you all size a position on, say, a stock CFD? Is it simply a percentage of your total trading capital, or do you factor in the daily volatility of the underlying as well? My current playbook feels a bit too conservative, but the thought of having too much exposure on $TSLA or something gives me the jitters.

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2 Comments

JAu/joko.aquino·1mo

That's a great question, I'm kind of in the same boat coming from spot forex and trying to get a handle on CFD sizing for stocks. I've been sticking to a small percentage of my capital, but I'm curious about factoring in daily volatility too. Does anyone adjust their position size based on the average true range (ATR) of the stock?

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LHu/lee_hannah·1mo

This is a great question. I've been wondering the same thing myself, especially with some of the more volatile tech CFDs. Do you typically use a fixed percentage for all your trades, or does it vary based on the stock's price action?

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