5 Basics of Trading

Thanks to CFDs, anyone can unearth their talents as a trader. Here are 5 trading basics to get you started on discovering your potential.

1. Knowing the difference between trading and investing

Think of investing as a long-term, traditional and physical practice. You buy shares in a company using the full amount up front, you’re issued a share certificate, you receive dividends, and you sell after a significant period of time – months, or years.

Now think of trading as a shorter-term, more flexible alternative. You use CFDs (contracts for difference) to buy or sell any type of market without having to own the underlying asset. You don’t pay the full amount up front – you use leverage – and you hold these positions for days, or even hours.

2. Learning about leverage

Most CFDs markets are leveraged. Leverage means you get a larger market exposure with a relatively small initial deposit, because you ‘borrow’ the remainder from a broker (like us). In other words, your potential return on investment is significantly larger than in other forms of trading.

Leverage is also frequently referred to as margin. This is because the funds you need to open and maintain a position – known as the margin – is only a ‘marginal’ amount of the total trade size.

For example, a 10% margin requirement means that you have to deposit only 10% of the value of the trade you want to open, and the rest is covered by your CFD provider.

3. Profit from both rising AND falling markets

  • If you believe the price of an asset is going to rise, you go long or ‘buy’ and you’ll profit from every increase in price.
  • If you believe the price of an asset is going to fall, you go short or ‘sell’ and you’ll profit from every fall in price.

Of course, if the market goes against your position in either direction, you’ll incur a loss. The more contracts you open on your position, the more profit/loss you’ll make with each move in the market.

4. Accessing a huge range of markets – all from one place

CFDs give you instant access to multiple asset classes under one platform, including:

There’s no need to go to different brokers or exchanges depending on what you’d like to trade. Everything is there, at your fingertips – all under the same powerful platform.

5. The most successful traders realise that risk management is key

The important thing to remember about CFD trading and leverage is that it can magnify your losses as well as your profits. If prices move against you, you may be closed out of your position. So it’s important to understand how to manage your risk.

Here are some key elements of good money management:

  • The size of your position
  • Diversification – trade multiple asset classes
  • Trading during certain hours
  • Stop losses and take profit levels
  • Knowing when to take losses

Getting started is easy

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To verify your account, you are requested to submit the below documents:

  • A clear copy of a Proof of Identity, in the form of a National ID card or International Passport. Your full name, a photo, date of birth, and date of expiry must be clearly visible on the documents. Both sides of the document need to be submitted.
  • A copy of a Proof of Residence, not older than 3 months, in the form of a utility bill (electricity, water etc.) or bank/card statement. The document must clearly show your full name, residential address, date of issuance, and a company stamp or logo.

After you submit your personal details on the KYC form, you should receive an email to your inbox titled “Verify Email Address”. Open the email and click on the ‘Verify Email Address’ button to continue your onboarding process. If you do not receive a confirmation email in a few minutes, please check your Junk/Spam folder.

If you wish to change any information previously submitted in your application, send us an Email to [email protected] or call us on +442033016473.

Login into your client portal. and navigate to “Profile” -> “Personal Information” -> “Change Password”.