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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MetaTrader is a platform provided by MetaQuotes Software that allows online trading in the CFD, Futures and forex markets. The software is licensed to AvaTrade for your convenience. There are two types of platforms known in the trading world today MT4 and MT5.
In the financial markets, there is an expression: ‘The trend is your friend’; and while this phrase might make logical sense, in practice it is as opaque as it can get. But what is a trend and how do we define it as well as trade with it?
Knowing how to manage your money especially on the forex markets is, possibly, the very first discipline to learn before entering the markets. Here you can find valuable information on the basic terms and illustration of how to best manage your capital.
Price moves in Forex trading are counted in pips or pipettes, but what does this mean? Pips and pipettes are the smallest units of change in an exchange rate. A pip is equivalent to a change of 1 in the 4th decimal place, and a pipette is 1/10th of a pip.
Learn about the different types of price charts – line, bar and candlesticks – to better understand the information represented in this form. Assess market conditions such as buying/selling pressure, highs and lows of the price during the given time frame directly by analysing the graphs. Get to know important graphical analysis patterns and their meaning to become a better trader.
Learn how to trade forex online. Friedberg Direct has all the basics covered as well as a step-by-step trading guide for beginner traders.
Friedberg Direct provides its clients with a range of trading platforms, proprietary and third party. Read the review and features of the available trading platforms in order to choose the best forex trading platform for your needs. Compare the industry standard Metatrader 4 vs. other platforms available at Friedberg Direct. Learn the features of other manual and automated trading solutions available to our clients, including AvaOptions etc.
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.
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.
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.
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.
Paper trading also known as demo account trading allows traders new to the Forex market and CFDs the ability to trade for free on a practice account before trading for real. By building up skills and acquiring trading confidence ‘paper trading’, plays an invaluable role in a trader’s education.
Vanilla options are contracts giving traders the right to buy or sell a specified amount of an instrument, at a certain price on a pre-defined time. When trading currency options, the trader has the power to control not only the instrument and the amount he trades, but also when and at what price. Options can be traded for a day, a week, a few months or even a year.
Leveraged 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 of the entire position worth that the trader invests (0.25% for the same case). Leveraged trading can boost a trader’s profits, but simultaneously increases the associated risks.
Are you a day trader, a swing trader or a scalper? Explore your trading style. In this section we take a look at the various trading styles that are adopted by traders in today’s markets. Discover which is best suited to you, your risk tolerance and your knowledge of the trading market.
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.
As not every trader is the same and there is no perfect trading plan, there are universal rules and elements to consider when you are building your specific trading plan to suite your trading style. Want to know what should be included in your trading plan?
Fear, greed, hope and regret are normal human emotions, but they can seriously impact the performance of a trader. Read about the psychological aspects of trading, learn to identify and manage the emotions that can influence your decisions and develop a winning trader’s mindset.
How much money do you need to start trading? What are the risks of being undercapitalized and how to avoid them? What’s the proper leverage based on your available balance? How to avoid a margin call and properly size your positions? Read our guide to find answers to these questions.
One of the most popular investments in the financial markets today is the carry trade. This involves selling or borrowing an asset with a low-interest rate, with the aim of using the proceeds to fund the purchase of another asset with a higher interest rate.
At its most basic, arbitrage can be defined as the concurrent purchase and sale of similar assets in different markets in order to take advantage of price differentials arising from local supply/demand divergences.
Currency pegging is when a country attaches, or pegs, its exchange rate to another currency, or basket of currencies, or another measure of value, such as gold. Pegging is sometimes referred to as a fixed exchange rate.
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In finance, a currency swap, also known as cross-currency swap, is a legal contract between two parties to exchange two currencies at a later date, but at a predetermined exchange rate.
In the world of financial trading, asset correlation establishes how and when the prices of different financial instruments move in relation to each other. With regards to currencies and forex trading, correlation is the behaviour that certain currency pairs exhibit where they either move in one direction or in different directions, simultaneously
In financial trading, slippage is a term that refers to the difference between a trade’s expected price and the actual price at which the trade is executed.
While asset prices may appear to move randomly up and down, technical analysis shows that there are distinct repetitive cycles that occur. These are predominantly driven by the market moves made by large institutional investors, and in order to trade successfully, individual traders should watch these market moves, or market cycles, closely.
The Liquidity definition refers to the extent to which a particular asset can be bought or sold quickly on the market without having a significant effect on its price. Liquidity is an important factor that investors assess when making their trading decisions since it has an effect on their trades.
Keep on learning
Get deeper into trading concepts and analysis as well as using our trading platforms with our collection of free forex tutorial videos.
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