CFD short selling entry orders

[steven01]

Hi, i need some clarification and guidance please. Looking at short selling CFD's through IG. For entry orders putting in a stop entry order e.g ABC share trading at $1.00 (I think will drop to $.80) put in an entry sell stop order at $.95 I would presume that if it gets down to that price of $.95 it comfirms my thoughts of the down trend? What I don't understand is if I think the price is going down hence why I am shorting is why would I place an entry sell limit order of say $1.10? I would think if that price gets hit the trend is going the wrong way as it would need to retract further to make $$. Hoping someone could provide some clarity, many thanks in advance.

 

[Valued]

Hi, i need some clarification and guidance please. Looking at short selling CFD's through IG. For entry orders putting in a stop entry order e.g ABC share trading at $1.00 (I think will drop to $.80) put in an entry sell stop order at $.95 I would presume that if it gets down to that price of $.95 it comfirms my thoughts of the down trend? What I don't understand is if I think the price is going down hence why I am shorting is why would I place an entry sell limit order of say $1.10? I would think if that price gets hit the trend is going the wrong way as it would need to retract further to make $$. Hoping someone could provide some clarity, many thanks in advance.

IG has a PDF on the order types. They outline what they mean by stop and limit orders and give some examples of where you may use them.

https://www.igmarkets.com/content/files/module3_en.pdf

 

[steven01]

Thanks Value, but the entry examples given in the PDF are for Long trades, I get that but need clarity on short trades, cheers.

 

[steven01]

Thanks Value, read thru it properly now, got it, no problems. Have opened demo account with IG and have started using for shorting.