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.
How to Trade Online?
Learn how to trade forex online. AvaTrade have all the basics covered as well as a step-by-step trading guide for beginner traders.
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 is 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.
Are Cryptocurrencies Indeed Currencies?
One of the most interesting arguments of the modern age of financial investment is that between the opponents and supporters of digital money. On one side, those against cryptocurrencies contend that Bitcoin and other such digital currencies are a scam and that people who are “fooled” into buying them will soon pay the price for their gullibility, while supporters contend that it is a legitimate asset.
How To Trade Cryptocurrency?
At Avatrade you can trade a range of popular cryptocurrencies, including Bitcoin & Bitcoin Cash, Litecoin and Ethereum. Learn how to trade cryptocurrency without the need for maintaining e-wallets and without the exposure to cyber threats associated with cryptocurrency exchanges. Read on about cryptocurrency CFD trading.
How to Invest in Cryptocurrencies?
If you are a believer in the future of cryptos and their underlying technology, this could be the strategy for you. Dollar-cost averaging is an investment approach that regularly adds a fixed dollar amount to a crypto portfolio. For instance, an investor may commit to invest $100 every month in cryptocurrencies, regardless of the prevailing prices. Dollar-cost averaging is very effective when trading assets as volatile as cryptocurrencies.
How to Value Cryptocurrencies?
Cryptocurrencies are truly a unique type of investment. On any given day, a crypto may see double or even triple-digit gains or losses, making it incredibly difficult for most traders to determine the actual value of a particular cryptocoin. However, if you invest in Bitcoin or any other digital currencies, knowing how to compare a currency’s current trading value and its actual (intrinsic) value is important, as it helps you to decide when to buy (if the market is undervalued) or to sell (if the market is overvalued).
How the BlockChain Works?
Whether or not there is a Satoshi Nakamoto is a moot point. What is clear is that in the aftermath of 2008, two lessons were learned by too few: Spending more than one owes – debt – entails a departure from pure capitalism in that it introduces a form of bondage into a system that should be concentrated on the communication of value rather than social relationships; and Trust, the basic emotion upon which is based the ability to ascribe value to little metal disks and painted paper (i.e. money), is too central to the capitalist system to be ascribed to mere humans (i.e. bankers).
Top 10 Cryptos (That Are Not Bitcoin)
Since its launch in 2009, Bitcoin has dominated the cryptocurrency scene. To this date, it remains the poster child of the crypto world, the gold standard. But it has also inspired many spinoffs or crypto projects, and there are now over 1500 crypto coins on the market. Apart from Bitcoin, here are 10 of the best crypto coins around.
What are Financial Derivatives
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 Leverage Trading?
Leverage 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 if the entire position worth that the trader invests (0.5% for the same case). Leverage trading can boost trader's profits, but simultaneously increases the associated risks.
What is a pip?
Price moves in Forex trading are counted in pips or pipettes, but what does this mean? Pips and pipettes are smallest units of change in an exchange rate, pip is equivalent to a change of 1 in 4th decimal place, and pipette is 1/10th of a pip.
What is Currency Strength?
A currency’s strength is determined by the interaction of a variety of local and international factors such as the demand and supply in the foreign exchange markets; the interest rates of the central bank; the inflation and growth in the domestic economy; and the country’s balance of trade.
How To Trade Bonds
To trade bonds effectively, you must understand why bond prices fluctuate. Read about the main factors impacting treasuries prices. There are two broad approaches to trading bonds: fundamental and technical. Fundamental strategies focus on qualifying the best bonds to trade for the medium to longer term, while technical ones seek out more short-term opportunities.
How to Trade Rising and Falling Markets
Today, we wanted to focus on one of the main advantages that trading CFDs offers: the opportunity to open either ‘long’ or ‘short’ positions, according to the market conditions and your trading strategy. In a nutshell, CFDs offer traders an opportunity to profit (but also to lose) from price movements in the financial markets without owning the underlying asset. Learn more here.
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 are EMH and Random Walk Theory
The Efficient Market Hypothesis (EMH) is an investment hypothesis which advances the belief that the prices of financial assets reflect all the available information. Another hypothesis, similar to the EMH, is the Random Walk theory. Random Walk states that stock prices cannot be reliably predicted.
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 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.
How To spot Forex Scams
As long as the lucrative Forex market exists, Forex scams will always exist. It is therefore prudent for investors to be able to identify and avoid Forex scams in the various forms they come in. We've gathered examples of most common FX scams for you to stay safe.
How to Choose a Forex Broker
A good broker is as interested in your trading success as you are, and they will provide the best possible environment for you to realize your trading goals and ambitions. In contrast, a bad broker will hinder your success, no matter your trading experience, knowledge or skills. This is why it is essential to take your time when choosing a broker – it is a decision that may determine your eventual success or failure in the forex market.
Beginner's Guide to Online Trading Success
Take a look at the important elements of online trading everyone needs to take into account if they want to achieve any degree of success in this endeavour.
Why Trade Indices CFDs
What you don’t often hear is that with an abundance of hidden opportunities just waiting to be unlocked, trading global indices can be just as exciting and lucrative. Here are 5 reasons we believe you’ll enjoy adding at least one index to your portfolio.
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. AvaTrade offers copy trading platforms enabling traders to take advantage of this breakthrough offering.
The rapid growth of cryptocurrency trading has elicited a mixed response from global regulators and governments in a number of different ways. Each authority has examined various aspects of the crypto-world and have come up with modalities of regulating it.
Are Cryptocurrencies The future of Money?
Almost a decade after its inception, Bitcoin has surged in global popularity and has given birth to over 1,500 other alternative blockchain-based coins. The digitisation of money is inevitable, and ironically, governments (who have been the biggest threat to Bitcoin and other cryptos) are now looking into issuing their own cryptocurrencies.
How Do Cryptocurrencies Work?
Cryptocurrencies are a form of digital money that runs on a completely new monetary system, which is decentralised and peer-to-peer. Essentially, this means that cryptocurrencies eliminate trusted third parties, such as banks or governments.
What is a Currency Swap?
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.
What is Slippage?
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. It is a phenomenon that occurs when market orders are placed during periods of elevated volatility, as well as when large orders are placed at a time when there is insufficient buying interest in an asset to maintain the expected trade price.
What is Spread Betting?
In spread betting the trader places a bet if the market will go up or down. There is no acquisition of the underlying instrument, rather simply betting on the market trends. The profits or losses are determined by the changes in value and not by the closing price.
Trading by its very definition is a risky undertaking. The moment you buy an underlying security, market forces can determine what happens to your trades. Currency markets, equity markets, and commodity markets are subjects to market forces with varying degrees of risk.
What is Speculation?
There are many different ways for speculators to trade. Some of the most popular strategies used include price action trading and the use of stop loss orders to enjoy some form of protection against massive losses.
Forex Trading Hours
FX currencies allow for trade on every level, from the small town marketplace to international trade agreements. Central banks and corporations require currencies as a means of exchange, and they need access to all the different currencies on a 24-hour basis if they can be expected to carry on trade all around the world and in all the different time zones.
Forex Trading Career
If you are considering a career as a Forex trader, it makes sense that you are also interested in finance and currency trading to begin with. So, you’re probably already aware of the wide array of tools and technologies that can be used to explore the world of trading. It’s unlikely you’ll ever get to explore them all if you’re working for a company.
How to Choose a Trading Market
For any investor, a good trading market should be flexible and convenient and offer a suitable risk/reward ratio. Ultimately, a good trading market should match your risk appetite as well as offer you the chance to realize your investing or trading ambitions. Here are some of the different types of markets and their features.
What is IPO
IPOs indicate that a private company has decided to go public. IPOs are often surrounded by lots of hype and hysteria. Companies that can whip up lots of interest with the mass-market typically burst onto the scene; but if their performance fails to live up to expectations, the company could go out of business within a few years.
The blanket recommendation it is advice to buy or sell an asset, typically an equity, but it could be some other asset like currencies or gold, that’s distributed in a broad manner to all the advisors clients.
10 Most Valuable Currencies
To determine the strength of a currency or if it is the most valuable currency in the world or the most expensive currency, we need to consider the interaction of a variety of local and international factors. This includes the supply and demand in the forex markets, inflation, growth in the domestic economy, the interest rates of the relevant central bank, and the country’s trade balance. Read this article to find out which are the strongest currencies in the world!
Forex Market Structure
The Forex market structure was reshaped with the technology revolution and today, it is an even more efficient market. The Spot Forex market is decentralised and this means that no single or centralised participant is controlling the market. In addition, the many participants impact the price of a currency pair and as such, there is no single price for a given currency at any time.
Forex Trading Sessions
There are generally four main trading sessions: the Sydney session, Tokyo session, London Session, and the New York session. Both the Sydney and Tokyo sessions are customarily referred to as Asian sessions. This is why Forex is usually referred to as the 3-session market: Asian, London, and New York.
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.