Forex trading explained for beginners and learn the important points of trading

Focus on safety Captal.com puts a special emphasis on safety. Capital com group is licensed by CySEC, FCA, ASIC, FSA & NBRB, it complies with all regulations and ensures that its clients’ data security comes first. The company allows you to withdraw money 24/7 and keeps traders’ funds across segregated bank accounts Follow Capital.com to always stay on top of the latest market developments and discover forex trading tips, analysis and forecasts All-round trading analysis The browser-based platform allows traders to shape their own market analysis and forecasts with sleek technical indicators. Capital.com provides live market updates and various chart formats, available on desktop, iOS, and Android. Study live currency pairs within the platform while simultaneously browsing tailored news based on your trading behaviour Trading the difference
When trading CFDs on currency pairs you don’t buy the underlying base currency itself. You instead speculate on the rise or fall of its value. CFD trading is no different from traditional trading in terms of its associated strategies. When trading CFDs you can go short or long, set stop and limit losses. Trading on margin Providing CFC trading on margin (up to 30:1 for major currency pairs), Capital.com gives you access to the wide range of popular forex markets without you needing to have a large amount of funds in your account. Why use Capital. com’s forex trading platform A Facebook-like news feed provides users with personal and unique content depending on their preferences.
If a trader makes decisions based on biases, the innovative News Feed offers a range of materials to put him back on the right track. The neural network analyses in-app behaviour and recommends videos and articles to help polish your investment strategy. Forex trading terminology Before you enter into forex trading it’s useful to know some of the common lingo used by traders. Here’s a simple glossary of some of the terms you’ll come across:
Aussie – slang term for the Australian dollar Ask price – the price at which a trader can buy Base currency – the first currency shown in a currency pair – in USD/EUR the US dollar is the base currency Base rate – the lending rate set by a country’ bank Basis point – equal to 1/100th of 1%, or 0.01% – or 0.0001 in the price of a currency pair. Often called a “pip” Bear market/bearish – indicating a market or asset price in decline Bear – traders who expect prices to fall and may be holding short position side price – the price at which a trader can sell Bull market/bullish – indicated a market or asset price that is rising all – a trader who expects prices to rise and may be holding long positions able – slang term for the GBP/USD currency pair Counter currency – the second currency in a currency pair – in USD/EUR the euro is the counter currency
Counterparty – a participant in a transaction Day trading – entering and exiting a trade in the same day. This is the typical strategy employed on CFD trading platforms Derivative – a financial product whose value is based on an underlying asset Dollar index – a measure of the US currency’s strength relative to a basket of other currencies that include the euro, the pound and the yen. Its symbol is DX Yove/dovish – relating to monetary policy that supports lower interest rates.
Opposite of haw screen back – slang term for the US dollar, also buckawk/hawkish – relating to monetary policy that supports higher interest rates. Opposite a trading position or positions that helps reduce risk on your primary trading positionswi – slang term for the New Zealand dollar – this allows an investor to open positions much larger than his up-front capital can cover.
It means that you can multiply your profits significantly on winning trades, but risks you losing much more than your initial investment. Take note of the warnings on trading platforms that offer leveraged trading a highly liquid market has enough volume of trade to ensure smooth price movements. Illiquid markets have low levels of trading activity and can result – slang term for Canadian dollar Margin – margin is related to leverage, and represents the minimum amount of cash you need to deposit to trade at your specified leverage Margin call – when your open position moves against you, your broker will make a margin call for you to supply additional funds to cover your Open position – an active trade ip – stands for “price interest point” and is the smallest amount by which a currency pair’s price can change. On quoted currency pairs, a single pip will be 0.0001 this is the difference between the bid – or sell – price, and the ask – or buy – price on a currency pair. alternative name for the UK a minimum change in price, or a pip
What is a forex trading platform the top interbank traders to bedroom-based retail investors, all currency trading is performed on some kind of computer platform-based interface All forex trading platforms – including Capital com’s access to forex CFD trading – provide investors with appropriate tools to enable them to make their investment choices These may include research tools such as charts, historical data and access to news and analyst reports trading platforms may have a similar look and feel to those used by professional institutional traders, but remember, it’s not institutional money you’re trading with. You will be margin trading, most likely using leverage, so be careful to use the full range of tools these platforms provide, particularly the stops.