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.
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.
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.
Learn about the different types of price charts - line, bar and candlesticks charts 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.
AvaTrade 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 AvaTrade. Learn the features of other manual and automated trading solutions available to our clients, including ZuluTrade, Duplitrade 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.
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.
Technical analysis is an important factor in making smart trading decisions, whether you’re trading forex, commodities, stocks or indices. Find out more about the tools and techniques you need to understand and analyse live charts so that you stand the best possible chance of succeeding in the markets.
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.
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.
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.
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.
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.
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?
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.
What's a stock exchange? What are the primary and secondary markets? How shares are issued, bought and sold? Want to learn about the medium where shares are traded? Here you'll find information on stock market structure, main regional stock exchanges, different life cycles of issued shares, and the ways one can profit from them.
Learn how to trade forex online. AvaTrade have all the basics covered as well as a step-by-step trading guide for beginner traders.
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.
Financial market volatility is defined as the rate at which the price of an asset rises, or falls, given a particular set of returns. It is often measured by looking at the standard deviation of annual returns over a set period of time.
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.
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.
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.ese 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 multifaceted world of financial markets offers numerous opportunities to make money by buying or selling financial assets online. Different traders use diverse strategies to pick out lucrative opportunities in the market. It is important to understand the various trading styles to determine which strategy is best suited for your trading goals.
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.
Forex signals came about as a natural innovation of the financial industry. They basically solve the most daunting activity any trader has to perform – to identify the right trading opportunities at the right time.
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.
Over the past few years, cryptocurrencies have had a big impact on the global financial niche. Although Bitcoin trading and most other cryptocurrencies have declined in value in recent months from record highs last year, they now appear to be stabilising.
In 2009, when the Bitcoin whitepaper came out, the idea was clear: there was a need to create a decentralised currency system that would free the ‘masses’ from the firm grip of central banks and other financial institutions.
The U.S. Federal Reserve System (FRS), also called the Federal Reserve or simply the Fed is the Central Bank of the United States of America. It was established to provide a flexible, secure, and steady system for national monetary and financial affairs.
The European Central Bank (ECB) is the top monetary institution in the European Union (EU), governing the Euro currency (EUR) and the monetary and financial affairs in the region. It was established on June 1, 1998, as one of the seven EU institutions which were agreed upon in the Treaty of Amsterdam.
Regulators around the world are divided on how to control this industry. Since these digital currencies do not have the backing of any central government, each country has been forced to devise their own codes and legal frameworks for the industry.
Wisest traders employ alternative to adapt to the changes in the markets. Options Trading is one of our most powerful instruments to achieve this. Discover it now.
Learn how The magnitude and speed of volatility created after GDP releases can create many high-risk & high-return opportunities.
The release of CPI report is usually bound to create large-scale volatility in the financial markets, especially in the Forex market. Discover how and improve your trading knowledge now.
Fiscal policy and monetary policy are economic tools to help a country reach its macroeconomic goals. Learn how it can improve your knowledge on trading market.
Each month numerous trade balance reports are released around the world. They inform the markets not only about the international commerce performance of the country but also the changing dynamics of the global economy. Learn why it is so important for you trading !
As the private sector represents a significant portion of a country’s economic production and employment, its well being is vital for the national economy. Thus, the economic bodies track the private sector performance closely and make sure corporate profits are growing to enable further expansion.
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.
The Bank of Japan (BoJ) is Japan’s central bank and the country’s highest monetary authority. The bank is headquartered in Nihonbashi, the business district of Chūō, Tokyo. It was established under the 1882 Bank of Japan Act and began operating on October 10, 1882, before issuing its first currency notes in 1885.
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.
Sign up for a demo account and put your learning into action by trading risk-free!