I'm making the unusual move from Futures to CFDs and need some advice about how to set up my trades.
Futures tend to move in fairly large tick sizes depending on the instrument: each tick could be 1.0 0.5 0.25. There's also no spread in Futures. The closest buy and sell orders are separated by 1 tick.
So for stop entry orders I'd place my order a tick above or below the breakout price.
CFDs move in much smaller tick sizes. 0.01 0.1. Plus there's the spread. I know I need to add the spread to my buy entry orders and my short exit orders but I don't know how much wiggleroom should to add.... 0.01 is such a tiny amount... I'm worried about being triggered into a trade too early by a small fluctuation of the spread.
How much wiggle room should I add on CFD Trades?
Futures tend to move in fairly large tick sizes depending on the instrument: each tick could be 1.0 0.5 0.25. There's also no spread in Futures. The closest buy and sell orders are separated by 1 tick.
So for stop entry orders I'd place my order a tick above or below the breakout price.
CFDs move in much smaller tick sizes. 0.01 0.1. Plus there's the spread. I know I need to add the spread to my buy entry orders and my short exit orders but I don't know how much wiggleroom should to add.... 0.01 is such a tiny amount... I'm worried about being triggered into a trade too early by a small fluctuation of the spread.
How much wiggle room should I add on CFD Trades?