Sell Bitcoin CFDs
There are many reasons to sell a Bitcoin CFD: maybe you want to invest the money in altcoins or simply realize your profits? Whatever the reason you want to sell your Bitcoin CFD, here are a few things to keep in mind:
You can already set a so-called “stop loss” when buying Bitcoin CFDs. A stop loss will automatically close an open position once the price falls to the level specified in the order. This way you can limit your losses. It is up to you to decide exactly where you want to set your stop-loss. Especially when trading CFDs, the stop loss is usually relatively far away from the entry price due to the high volatility. However, it can also lead to higher losses. However, if the stop loss is set too high, many investors will be stopped out too soon. Another risk is that the position will not be liquidated in time by the broker, despite a stop loss. In this way, it could happen that investors suddenly realize a loss of more than 300 euros despite a stop at a loss of 150 euros, for example.
This is where the guaranteed stop loss comes into play. In this case, the broker guarantees that the position will be closed out at exactly the desired price and, in the case of an order with a guaranteed stop loss, bears the risk of closing out the position. The broker must bear the costs for the deviations himself. In return, traders usually pay a fee for the guarantee. Whether the guaranteed stop-loss function is offered and what the fees are depend on the CFD broker.
Some providers also offer a “Close if Profit” feature. With this, investors can set a price level above the entry price at which the position should be closed in order to secure the profits.
Depending on the provider, it is also possible to sell not only the entire open position, but only a part. In this way, investors can minimize their risk.
When trading Bitcoin CFDs, be mindful of the leverage you choose. Not only the profits but also the losses are leveraged. Bitcoin price losses of just a few percent in combination with leverage can lead to a total loss in the worst case.