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CFD's: How to place a CFD FX trade on IBKR

A Guide to placing a CFD order with Profit taker and Stop Loss Orders (with EUR.JPY Example)

Updated over 2 months ago

Important Notes:

This course concentrates specifically on the IBKR Client Portal. For tutorials on IBKR's other platforms, including the Mobile App and TWS, please check out our other available courses.

But here's the game-changer: you'll not only learn to execute buy orders with precision, but you'll also discover how to set up profit takers to automatically lock in your gains and implement stop-loss orders to safeguard your capital—all simultaneously!

That means less screen-staring and more life-living.

Let's dive in!

PS: Practice in a simulated account first before you get started.

Step 1: Login to the IBKR Client Portal

Step 2: Click on Trade & Order Ticket

Step 3: Click on CFD's

Step 4: Type EUR and hit Enter

  • Choose the FX Pair: In our example we will use EUR.JPY

  • Scroll to the bottom of the window until you see the order panel under the chart

Step 5: Scroll underneath the chart to find the order menu

Let's break down how to buy a CFD using EUR.JPY CFD as an example:

  1. Action: Choose "Buy.”

  2. Quantity (Qty): Enter the total value you want to buy (in this example in euros) you want to purchase. We are going to change it from 20,000 to 100,000.

  3. Order Type: Select "Limit" to control the price you pay. This means your order will only execute if the stock price drops to your specified level. Alternatively, choose "Market" for immediate execution at the next available price (be aware that with a market order, you are accepting the current market price, which could change rapidly).
    Limit Price (Only if you chose "Limit" order): Set the maximum price you're willing to pay per share. In our example, we've set it to 156. Your order will only be filled if the EUR.JPY price reaches or falls below this level. If you choose a "Market" order, this step is skipped.

  4. Time in Force: For FX trading you can leave this as a day order if you like …this means that the order will disappear if it is not filled within one trading day.

Step 6: Attach profit Taker and Stop Loss orders

Let's set up your profit taker and stop-loss orders to manage your trade:

  1. Attach Orders: Click on the "Attach Orders" option.

  2. Select Order Types: Choose both "Profit Taker" and "Stop Loss."

  3. Profit Taker Limit Price: Set the price at which you want to automatically sell the EUR.JPY and lock in your profit. This is the price you're instructing the market to sell at, if your initial buy order was filled. Change the Time in Force to "Good 'Til Canceled" (GTC). In our example we choose 157.

  4. Stop Loss Price: Set the price at which you want to automatically sell the EUR.JPY to limit potential losses. For example, we've used 155. If the EUR.JPY price drops to or below 115, your shares will be sold at the next available price, again, only if your initial buy order was filled. Remember to Change the Time in Force to "Good 'Til Canceled" (GTC).

Important: Remember, these profit taker and stop-loss orders are contingent on your initial buy order being executed. If your buy order doesn't go through, these attached orders won't be placed either.

Step 7: Preview your order and check the margin requirement

You can see from the above that to buy €100,000 euro worth of the EUR.JPY CFD that the margin increases by €3,330. Remember, that you get charged an interest rate on this margin amount.

Step 8: Submit your order

If you are satisfied with this trade click on submit buy order.

Checking your orders

Cancel or modifying your order

If you want to change the limit prices or cancel your order:

  1. Click on the 3 dots on the right hand side of each order

  2. Then click ‘cancel’ if you want to cancel the order

  3. Click Modify if you want to change the limit price

And that's it! With your buy order, profit taker, and stop-loss in place, you're free to step away from your screen. No need to be glued to your computer, watching every tick of the market. Your trades are working for you, even while you're away.

Trade with Confidence

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