To trade in CFDs, you choose how many contracts you want to buy or sell, which is known as ‘opening a position’. If you have chosen correctly, the markets will move in the direction you predicted, and your profits will increase every time the market moves a point in your favor.

For an asset that you believe is going to increase in price, investors will want to buy in order to capitalize on the increase in value. This is known as opening a ‘long’ position and you can make profits when assets do increase in value but lose money if their price decreases.
Similarly, if you believe that the price of a particular asset is about to fall, you would open a short position so that you profit if the market does drop in line with your prediction. Of course, this also carries the risk of losing money if the asset increases in value.