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Forex and CFD trading, explained in plain English

Short guides on how forex and CFD trading works, what it costs and where the risks are. Written by the NextTrade Education Team.

Basics

How forex and CFDs work: currency pairs, pips, lots and the orders you place.

Costs & risk

What a trade costs, how leverage and margin work, and how losses can grow.

  • 8 min read

    Trading costs: spread, commission and swap

    What you pay to open, hold and close a trade, how each cost is calculated and where NextTrade publishes its figures.

  • 8 min read

    Margin call and stop out: how they work

    How margin level is calculated, when a margin call or a stop out happens, and what each one does to your open positions.

  • 8 min read

    Stop loss and take profit

    How stop loss and take profit orders close a position automatically, how to read the distance in pips and money, and their limits.

  • 8 min read

    Position sizing: how to work out how many lots to trade

    A step-by-step method for setting the size of a trade from the amount you are prepared to lose, your stop loss and pip value.

  • 5 min read

    Forex leverage explained

    Understand how dynamic leverage up to 1:1000 works, calculate margin requirements, and learn risk management practices. Please note that trading with leverage increases both potential profits and losses and may result in the loss of your invested capital.

  • 5 min read

    Minimum deposit: what you need to know

    Start trading from $25 on Standard ($100 on Raw). Honest breakdown of what your deposit gets you and all deposit methods compared.

Platforms

Getting set up: funding your account, demo accounts, MetaTrader 5 and TradeLocker.

Markets & hours

When markets open and close across time zones.

Safety

How to check who you are dealing with and spot common forex scams.

  • 8 min read

    How to spot forex scams

    The warning signs behind the most common forex scams, and how to check who you are really dealing with before you send any money.

Trading glossary

Short definitions of the terms you will meet in the guides and on the platforms.

Popular terms

Full glossary

See how a trade is opened on TradeLocker

A short walkthrough of placing an order on TradeLocker. The video loads from YouTube only when you press play.

Plays from YouTube (youtube-nocookie.com)

Practise on a demo account

Try what you have learned with virtual funds before you trade with real money. CFDs are complex instruments and come with a high risk of losing money.

Open a demo account