subject: Some Webiress DMA CFD Trading Tips [print this page] Some Webiress DMA CFD Trading Tips Some Webiress DMA CFD Trading Tips
Most people I've talked to don't know the difference between OTC or over-the-counter CFDs and DMA or direct market access CFDs (DMA CFDs), before I start out it's vital to ensure that the distinctions between both types of Contracts for Difference are clearly explained as there are actually valuable advantages and disadvantages of each type that all traders should be aware of.
Understanding the differences between the two varieties of CFDs is quite easily explained. In essence DMA CFD brokers permit all of their clients CFD trades to flow onto the underlying order book of the stock over which the CFD is based, this permits DMA CFD traders to participate in the market depth a have their trades partly filled as well as enabling the trader to be a price maker instead of a price taker, OTC CFD brokers on the other hand frequently match orders against another clients order or their own internal liquidity rather than placing the order in the underlying market. OTC CFD companies have the benefit of having the ability to provide Contracts for Difference over indices and forex and tend to be more suited for traders seeking to access multiple asset classes, whist DMA CFD brokers are only able to offer CFDs over shares and are better suited to those seeking to trade stocks on leverage or CFDs over small cap stocks.
Now that you realize the difference between both varieties of CFDs on offer it is imperative to know the trading platforms available. As CFDs are traded on the internet it's vital to ensure that you select the right platform that suits your trading style, the preferred DMA CFD trading platform is webiress plus.
Webiress plus is the fastest and most reliable DMA CFD platform in the marketplace at the moment. Webiress plus started off it's life as a share platform and soon after was custom-made for CFDs. The platform is web based and uses java, like all java applications it's critical to ensure that you have got the most recent java version set up on your workstation so that you can experience the great functionality of the program.
Webiress plus can be somewhat intimidating for newcomers first starting out however as soon as you recognize the power of the application it is unlikely that you will utilize anything else. Configuring your first layout can often be by far the most tricky part however this is fairly straightforward if you stick to the basics. A few of the essential features of webiress that it is best to setup to display permanently on your trading platform workspace are a watch list, your portfolio, an order pad, a market depth window and naturally the market map. Having these features open on your workspace are key when you first start out and will stop you from making some common and easily preventable errors like not knowing whether a trade has been canceled or not.
Let's now take a look at the significance of each of these key webiress plus features.
Watch list
Having a watch list window open is crucial when you're trading as it allows you to watch the CFD positions you have open as part of your portfolio and any others that you could be interested in opening positions in. The watch list will allow you to observe prices without the need to have multiple price windows open.
Portfolio
The portfolio window is arguably the most important feature in webiress plus as this allows you to monitor the essentials of your portfolio including your free equity, margin requirements, portfolio value along with both your realized as well as unrealized profit and loss. From the portfolio window you will also be able to monitor your open positions, see your average price, market to market value and unrealized profit or loss on each individual position.
Order Pad
Using the order pad window is critical if you are thinking of managing several orders, the order pad window lets you track the status of your trades in the market. After placing an order using webiress plus it's critical to check whether the trade has successfully reached the market, this is usually done using the order pad, it's from here that you will also have the ability to check for part fills and confirm the status of order cancellations.
Market Depth
Accessing market depth is essential when trading DMA CFDs as this will enable you to see your trades in the underlying order book of the share over which the CFD is based, not only will you be able to see your trades in the depth but you will also have the ability to determine where support and resistance levels are by just looking to see the number of buyers or sellers in the market at each price point.
Market Map
The market map is without doubt one of the distinctive features of webiress plus, it provides traders with a visual portrait of the entire market at a glance. It is common for traders to make use of the market map feature to help them to pinpoint equity CFDs who's prices have either risen or fallen dramatically across the entire market. The market map is also able to show the market capitalization of equities meaning traders can swiftly filter out shares in a particular sector which may not meet their investing criteria.
Now that you are familiar with the distinctions between DMA and OTC CFDs and understand a number of the crucial features of the webiress plus trading platform you are well on your way to trading. Before you begin trading DMA CFDs on webiress plus it's essential that you practice using the trading platform, place a number of orders and create a trading workspace that suits your trading style. You'll be able to access a free webiress plus demo from leading CFD company IC Markets internet site that you'll be able to practice on for as long as you like.
