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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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 is MetaTrader?

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.

What is a pip?

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.

How to read a forex chart?

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.

Trading platforms comparison

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 ZuluTrade, Duplitrade, AvaOptions, etc.

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.

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 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.

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 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. Friedberg Direct offers copy trading platforms enabling traders to take advantage of this breakthrough offering.

What is paper trading?

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.

What Are Options?

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.

What is Leveraged Trading?

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.

Trading styles

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.

Derivatives trading

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 a trading plan?

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?

Trading Psychology

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.

Trading budget

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.

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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