How trading works?
1. Choose financial instrument
Forex, stocks, indices, commodities, crypto)
2. Decide whether to buy or sell
Based on your market expectations
3. Set position parameters
Define position size, leverage, and risk levels
4. Open a position
The trade becomes active
Deposits
Prices may rise or fall
6. You close the position
Profit or loss is realized
Key trading terms
Spreads
The difference between the buy and sell price of an instrument.
Leverage
May apply to positions held overnight and vary by instrument
and market rates.
Volatility
The degree of price fluctuation over time.
Margin
The amount of funds required to open and maintain a position.
Pip
A unit of measurement for price movements (commonly used in Forex).
Lot
A standard unit that defines the size of a trading position.
Risk and responsibility
Trading financial instruments involves risk. Market prices can move against your expectations, resulting in losses.
- Losses may exceed initial deposits (where applicable)
- Leverage increases both potential gains and losses
- Risk management tools are essential
Trading sessions and market hours
Financial markets operate during specific trading sessions depending on the region.
Market activity and volatility may vary throughout the day.
- Asian session
- European session
- US session
Some instruments are available for trading nearly 24/5, depending on market conditions.
Trading involves risk.
Trading basics materials are provided for educational purposes only and do not constitute investment advice. Past performance does not guarantee future results.
Always consider your financial situation and risk tolerance before trading.