Trading for Beginners

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.

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.

Cryptocurrency Regulation

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.

Cryptocurrencies In FinTech

Among the benefits of the blockchain technology that make it so attractive to FinTech companies and other large institutions, is the lowered risk of fraud since the technology is notoriously difficult to hack, its speed, and the fact that it eliminates intermediary steps between parties in a transaction.

Assets Management

Asset management is all about optimising the precise asset allocation mix in your portfolio, managing your assets for maximum yield, and suggesting viable investment opportunities to grow your financial portfolio.

IPO Explained

An IPO is an acronym for initial public offering. Private companies that want to go public can apply to become listed on the stock exchange as they transition from private ownership to public ownership. By going public, a private company offers shares (ownership rights) to shareholders in the market. Any private company can decide to go public (subject to qualification criteria).

Taylor Rule

The Taylor Rule is the brainchild of an economist John Taylor. This formula is geared towards the central banks around the world to determine the optimal short-term interest rates. Decisions are based upon 3 critical elements, including the unemployment rate, economic growth, and inflation.

What are Forex Signals?

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.

What Types of Traders Are There?

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.

Trading Risk

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.

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.

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.