Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.

New to the world of trading or Forex? Confused by different technical descriptions that seem to be used to describe the same things about financial markets? Want to learn how to trade Forex It is important to feel comfortable before you start trading with real money, as mistakes from misunderstanding basic execution concepts such as spread , leverage and position sizing can be very costly. This page will explain the key “hows” and “whys” such as the basic workings of the market, how to buy and sell Forex, and the meaning of leverage.


Investing in CMC Markets derivative products carries significant risks and is not suitable for all investors. You could lose more than your deposits. You do not own, or have any interest in, the underlying assets. We recommend that you seek independent advice and ensure you fully understand the risks involved before trading. Spreads may widen dependent on liquidity and market volatility.
Margin and leverage are among the most important concepts to understand when trading forex. These essential tools allow forex traders to control trading positions that are substantially greater in size than would be the case without the use of these tools. At the most fundamental level, margin is the amount of money in a trader's account that is required as a deposit in order to open and maintain a leveraged trading position.
Forex trading involves the sale of a currency, and the simultaneous purchase of another with the purpose of closing the position at a later time with a profit. Unlike in the stock or commodities markets where prices are routinely quoted in USD, the price of a currency can be quoted in any other currency due to the essentially bartering nature of currency transactions where live, as well as historical, forex charts are used to identify trends and entry/exit points for trades.
With Equivolume, you can plot price and volume activity on a single graph, instead of having volume added as an indicator on the side. This tool draws the bars following their traded volume at a precise point in time (the wider the bar, the bigger the volume). That creates a clear visualization of the volume increase or decrease of an asset’s diagram. A very handy feature for those strategies whose key factor is volume. How to change your table into Equivolume
While a margin amount of only 1/50th of the actual trade size is required from the trader to open this trade, however, any profit or loss on the trade would correspond to the full $100,000 leveraged amount. In the case of USD/CAD at the current market price, this would be a profit or loss of around $10 per one-pip move in price. This illustrates the magnification of profit and loss when trading positions are leveraged with the use of margin.
When you trade in the foreign exchange spot market (where trading happens immediately or on the spot), you are actually buying and selling two underlying currencies. All currencies are quoted in pairs, because each currency is valued in relation to another. For example, if the EUR/USD pair is quoted as 1.2200 that means it takes $1.22 to purchase one euro. 

Financial leverage is quite different from operating leverage. Operating leverage of a business entity is calculated as a sum total of the amount of fixed costs it bears, whereby the higher the amount of fixed costs, the higher the operating leverage will be. Combine the two and we get the total leverage. So, what does leveraging mean for a business? It is the use of external funds for expansion, startup or asset acquisition. Businesses can also use leveraged equity to raise funds from existing investors.  

Our Interactive plot offers you indicators to detect patterns on Japanese Candlesticks (see the list of Candlestick Patterns below). It’s a recommended tool for those traders that use Candlesticks to take trading decisions. This tool is very useful to get an immediate notification being displayed as soon as the pattern occurs. The Japanese candlestick theory establishes a series of patterns which are statistically previous to potential change or interruption of trends, a turning point in a current trend, etc.

Clearly, leverage should be used judiciously, but even with relatively conservative 10:1 leverage, the 7.5% yield on NZD/JPY pair would translate into a 75% return on an annual basis. So, if you were to hold a 100,000 unit position in NZD/JPY using $5,000 worth of equity, you would earn $9.40 in interest every day. That’s $94 dollars in interest after only 10 days, $940 worth of interest after three months, or $3,760 annually. Not too shabby given the fact that the same amount of money would only earn you $250 in a bank savings account (with a rate of 5% interest) after a whole year. The only real edge the bank account provides is that the $250 return would be risk-free. 
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Many traders define leverage as a credit line that a broker provides to their client. This isn't exactly true, as leverage does not have the features that are issued together with credit. First of all, when you are trading with leverage you are not expected to pay any credit back. You are simply obliged to close your position, or keep it open before it is closed by the margin call. In other words, there is no particular deadline for settling your leverage boost provided by the broker.
The concept of leverage is used by both investors and companies. Investors use leverage to significantly increase the returns that can be provided on an investment. They lever their investments by using various instruments that include options, futures and margin accounts. Companies can use leverage to finance their assets. In other words, instead of issuing stock to raise capital, companies can use debt financing to invest in business operations in an attempt to increase shareholder value. 
Hello Traders! We would like to show you a game... While Penguins are on the hunt, you can easily join them as well! It is easy, all you need to do is to collect the hearts and watch for the pig and thunder signs. Targets are marked on the chart as a crosshair. Heart in the box - a place to jump in/out Sign with exclamation mark - places to be aware of a few...

Before the Internet revolution only large players such as international banks, hedge funds and extremely wealthy individuals could participate. Now retail traders can buy, sell and speculate on currencies from the comfort of their homes with a mouse click through online brokerage accounts. There are many tradable currency pairs and an average online broker has about 40. One of our most popular chats is the Forex chat where traders talk in real-time about where the market is going.


This is why many traders decide to employ gearing, also known as financial leverage, in their trading - so that the size of the trading position and profits could be higher. Let's assume a trader with 1,000 USD on their account balance wants to trade big and their broker is supplying a leverage of 1:500. This way a trader can open a position that is as large as 5 lots, when it is denominated in USD. In other words, 1,000 USD * 500 (the leverage), would equal a maximum size of 500,000 USD for the position. The trader can actually request their orders of 500 times the size of his deposit to be filled.
Currencies are traded on the Foreign Exchange market, also known as Forex. This is a decentralized market that spans the globe and is considered the largest by trading volume and the most liquid worldwide. Exchange rates fluctuate continuously due to the ever changing market forces of supply and demand. Forex traders buy a currency pair if they think the exchange rate will rise and sell it if they think the opposite will happen. The Forex market remains open around the world for 24 hours a day with the exception of weekends.
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