Trading for Beginners

Trading for beginners - Educational section

Beginner's Trading Guides

Our Trading for Beginners section gives you all the information you need to start trading forex and CFDs with confidence. This should be your first stop to find out about currency pairs, how the forex market works, market analysis and CFD instruments.

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How to Trade Online?

Learn how to trade forex online. AvaTrade have all the basics covered as well as a step-by-step trading guide for beginner traders.

How to trade stocks?

The rise in popularity of online CFD trading has made it simpler and more convenient to trade the rise and fall of major global companies, such as Apple, Google and Alibaba. In this section you can read an overview of how CFD share trading works and learn more about the factors to consider when trading stocks.

What is currency trading

In this section we go a little deeper into how different currencies interact together in currency pairs – the basis of forex trading. You’ll also learn about the difference between major, minor and exotic currency pairs.

What is Copy Trading?

Both new and advanced traders can benefit from copy trading where trades are executed by seasoned professional traders with top track records. AvaTrade offers copy trading platforms enabling traders to take advantage of this breakthrough offering.

How To Trade Cryptocurrency?

At Avatrade you can trade a range of popular cryptocurrencies, including Bitcoin & Bitcoin Cash, Litecoin and Ethereum. Learn how to trade cryptocurrency without the need for maintaining e-wallets and without the exposure to cyber threats associated with cryptocurrency exchanges. Read on about cryptocurrency CFD trading.

What are Financial Derivatives

Find out what derivatives are and how they could be useful to you in trading, how their value is determined by various market fluctuations in the underlying assets. Learn all about the most common derivatives, including Futures, Forwards, Options, CFDs and Swaps.

What is Leverage Trading?

Leverage trading, also known as margin trading, describes the process that allows the trader to open positions investing only a fraction of the position price, while borrowing funds from the broker to cover the rest. Leverage is expressed as a ratio between total position worth and trader's investment (i.e. ) while margin appears as a percentage if the entire position worth that the trader invests (0.5% for the same case). Leverage trading can boost trader's profits, but simultaneously increases the associated risks.

What is a pip?

Price moves in Forex trading are counted in pips or pipettes, but what does this mean? Pips and pipettes are smallest units of change in an exchange rate, pip is equivalent to a change of 1 in 4th decimal place, and pipette is 1/10th of a pip.

What is Currency Strength?

A currency’s strength is determined by the interaction of a variety of local and international factors such as the demand and supply in the foreign exchange markets; the interest rates of the central bank; the inflation and growth in the domestic economy; and the country’s balance of trade.

How To Trade Bonds

To trade bonds effectively, you must understand why bond prices fluctuate. Read about the main factors impacting treasuries prices. There are two broad approaches to trading bonds: fundamental and technical. Fundamental strategies focus on qualifying the best bonds to trade for the medium to longer term, while technical ones seek out more short-term opportunities.

How to Trade Rising and Falling Markets

Today, we wanted to focus on one of the main advantages that trading CFDs offers: the opportunity to open either ‘long’ or ‘short’ positions, according to the market conditions and your trading strategy. In a nutshell, CFDs offer traders an opportunity to profit (but also to lose) from price movements in the financial markets without owning the underlying asset. Learn more here.

What is Short Selling?

Short Selling refers to a process of borrowing an asset from your broker and selling it during bearish market conditions, then buying it back at trend reversal and returning back to the broker, while pocketing the price difference as profits. Click the link for further information and a trade example.

What are EMH and Random Walk Theory

The Efficient Market Hypothesis (EMH) is an investment hypothesis which advances the belief that the prices of financial assets reflect all the available information. Another hypothesis, similar to the EMH, is the Random Walk theory. Random Walk states that stock prices cannot be reliably predicted.

What is Forex?

Learn about the global FX market, currency pairs and how a trade works. Here you’ll also find descriptions of some of the common online forex trading concepts such as order types, rollovers and hedging.

What are CFDs?

Contracts for Difference – more commonly known as CFDs – are an important financial instrument that allows traders to speculate on the rising and falling value of currencies, indices, commodities and stocks without owning the underlying asset. Here you can find out more about the various features of CFDs and how they work.

How To spot Forex Scams

As long as the lucrative Forex market exists, Forex scams will always exist. It is therefore prudent for investors to be able to identify and avoid Forex scams in the various forms they come in. We've gathered examples of most common FX scams for you to stay safe.

How to Choose a Forex Broker

A good broker is as interested in your trading success as you are, and they will provide the best possible environment for you to realize your trading goals and ambitions. In contrast, a bad broker will hinder your success, no matter your trading experience, knowledge or skills. This is why it is essential to take your time when choosing a broker – it is a decision that may determine your eventual success or failure in the forex market.

Beginner's Guide to Online Trading Success

Take a look at the important elements of online trading everyone needs to take into account if they want to achieve any degree of success in this endeavour.

Why Trade Indices CFDs

What you don’t often hear is that with an abundance of hidden opportunities just waiting to be unlocked, trading global indices can be just as exciting and lucrative. Here are 5 reasons we believe you’ll enjoy adding at least one index to your portfolio.

 

Keep on learning

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