Trading for beginners

Trading for beginners

Our UK Trading for Beginners section is designed to give you all the information you need to trade FX and CFDs in UK online. We will equip you with all the right tools and resources to make trading as easy as possible. If you have any questions about Forex trading in UK, currency pairs, the Forex market, contracts for difference, technical or fundamental analysis – this is your go-to guide.

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Moving Average (MA) is probably the most widely used technical indicator in online trading. There are several types of moving averages, (simple, exponential, smoothed, linearly weighted), which can be used by themselves, or in conjunction with other indicators. Read more about MA trading strategies in this guide.

Currency pairs, or Forex are currencies that are traded against one another. Forex is always traded in pairs – you buy one currency in the pair and you sell the other currency in the pair. The global Forex market contains dozens of major, minor, and exotic currency pairs. We will show you everything you need to know about trading Forex online, including hedging, stop loss, limit orders, rollovers, and much more.

Forex is traded on a trading platform. The most popular Forex trading platform, and the most reliable is MetaTrader. It comes in different varieties including MetaTrader 4 and MetaTrader 5, commonly abbreviated as MT4 and MT5. Here at AvaTrade, you can trade Forex, CFDs and futures using our trading platforms.

Currency pair quotations are quoted to multiple decimal points. Currency pair price movements are visible in terms of points up or down. These are known as pips and pipettes. These are the smallest possible price movements in a currency pair. In terms of decimals, they are the fourth decimal place. 1/10 of a pip is known as a pipette. It’s an incredibly small number, but on large Forex trading volumes even pipette changes can result in sizable price movements.

AvaTrade will introduce you to multiple price charts for Forex trading. These include candlestick charts, bar charts, and line charts. Once you study these charts, you’ll understand information in a much more meaningful way. By analysing these graphs, you will learn about buying and selling factors, price movements and lows/highs of currency pairs. Knowledge of different graphical analyses will invariably make you a better Forex trader.

We offer you third-party trading platforms and proprietary trading platforms. You can choose your preferred Forex trading platform based on your preferences. We encourage you to thoroughly review each of the features of these platforms so that you can make the best decision. The industry standard is MT4, or MetaTrader 4. We also have the AvaTradeAct Platform for you to use. There are manual and automated trading options available to Forex clients, including Robox, Zulu Trade, and Mirror Trader. It’s a good idea to check these out.

Our currency trading section delves into the interactions between different currencies. Recall that you buy one currency and sell another currency in the same pair. We will teach you everything you need to know about exotic currency pairs, minor pairs, and major pairs.

Derivatives trading is a novel way to trade financial instruments. The popularity of CFD trading is a case in point. Now, you can trade stocks based on their price movements without taking physical possession of these financial instruments. Trade stocks like Facebook, Google, Nike, Disney, General Motors Corporation, etc. We will teach you everything you need to know about CFD share trading, once you’re ready to trade stocks online.

Intelligent trading decisions cannot be made without a thorough understanding of technical analysis. Whether you are trading cryptocurrency, commodities, Forex, indices or stocks, technical analysis is important. Learn to analyse live charts so that you stand a better chance of success in the financial markets.

CFDs are derivative trading instruments. These are important financial instruments that allow you to speculate on the rising/falling prices of stocks, currencies, commodities, indices or cryptocurrencies. You don’t own the underlying asset – you simply speculate on its price movement. Read more about CFD trading and all the features you can enjoy.

Everyone’s favourite digital currency – cryptocurrency – is now available for trading purposes at AvaTrade UK. Forex Bitcoin is our signature digital currency. It is traded against the USD 24/7. There are plenty of opportunities in this highly volatile market, and BTC/USD is a popular choice with traders.

Spread betting is legal and popular here in the UK and in Ireland. All profits generated through spread betting are 100% tax-free. Click this link for more information on spread betting. With this type of trading activity, you forecast whether the market will rise or fall based on current trends.

The best way to understand spread betting is by seeing an example of it. The real-life application of this trading option is fascinating.

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.

When you borrow a financial asset from a broker and then you sell it in a bear market, you are engaging in short selling. But to complete the short selling process you must purchase it back at trend reversal and then return it to your broker. The price difference is your profit. For more information and an example on short selling, click this link.

Copy Trading is an exciting way to profit off the wisdom of professional traders. New and experienced traders can benefit from this trading activity. You simply copy the traders with the best performance and profit accordingly. Here at AvaTrade we have 4 unique auto trading platforms for you to use for Copy Trading activity.

Demo trading is known as paper trading. It’s the best way to introduce new traders to the CFD and Forex trading market. You’re basically trading for free on a practice account. Once you gain the requisite experience, you will feel a lot more confident to trade for real money. Paper trading is part of your overall trading education.

Contracts that permit traders to buy/sell a specific amount of a financial instrument at a specified price, at a predetermined time are known as vanilla options. When you trade these options, you can control the amount of trades you make, the type of financial instrument you are trading, when you trade, and at what price you trade. You can trade vanilla options for multiple time periods, including a day, week, several months and as much as a year.

Margin trading or leverage trading allows you to invest a fraction of the position price by using leverage to cover the rest of the price. The broker provides the leverage to the trader. This is commonly expressed as a ratio, for example 200:1. Margin is a percentage of the entire position. For example, if the position is £10,000 and you have 0.5% margin, the amount that you’re required to have for that position is £50. When working with leverage, it is important to understand that it can magnify your profits or magnify your losses.

There are several types of traders in the financial markets. You could be a scalper, a day trader, or even a swing trader. It’s important to examine your unique trading style to make sure that you derive maximum benefit from the financial markets. Your appetite for risk, your knowledge of macroeconomic variables, and your understanding of market conditions will help you determine your trading style.

There are many skills, that are required for forex and CFD traders to reach success. These include the understanding of basic trading principles, technical and fundamental analysis, markets, etc., and proper trading psychology is one of them.

This may sound like a strange concept, but derivatives trading is hugely popular here in the UK. CFD trading, futures contracts, swaps, forwards and options are all examples of derivatives trading instruments. Find out more about derivatives trading.

There is no failsafe trading strategy that works for all traders. Your trading plan is unique. Since there are a multitude of elements to consider, you should construct your trading plan based on your preferences. We can show you what is needed in a trading plan.

When you’re trading, nothing is more important than money management. You must learn to manage your money when you’re trading currency pairs on the markets. Capital management is a key discipline to learn.

Do you want to know more about a stock market? Learn about primary markets and secondary markets, and how to purchase shares on these markets. For detailed information on stock exchanges and their structures, click the link. You will learn about things like issued shares, their life cycles and how you can generate profits from them.

There is a trade difference if you start with $100 versus $2000, and yes it does matter. One of the more significant problems new traders face is being under-capitalised. When you start trading you goal is to have some sort of profit or income from your investment.

AvaTrade UK lists everything you need to know about trading Forex online. We will walk you through the process, step-by-step whether you’re a beginner, intermediate-level trader or an advanced trader.

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.

Feel free to access our complimentary Forex tutorial videos, trading guides, articles and educational resources.
AvaTrade UK features an all-inclusive glossary with helpful definitions of terms, phrases and trading concepts that you will encounter during your sessions. We encourage you to register for a demo account and enjoy risk-free trading under real market conditions.