Buy or Sell

You can take both “long”(buy) or “short”(sell) CFD positions to open positions. If you take a long position, you profit from a rise in the underlying instrument or securities price, and you lose if the underlying instrument or securities price falls. Conversely, if you take a short position, you profit from a fall in the underlying instrument or securities price, and lose if the underlying instrument or securities price rises.

When short selling CFDs, you will be determined by the rules for that stock exchange, in the USA, an up-tick rule applies where you can only sell on an up tick and in Australia you may experience limitations on the amount of CFDs you can short in a single day due to limited borrowing availability in the underlying market. Also when short selling CFD you can experience forced closure of a position if your CFD gets recalled.