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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.
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New to trading? Read these guides in order.
- 1What is forex and how does it work?8 min read
- 2What is a CFD (contract for difference)?7 min read
- 3Going long and short: how buy and sell trades work8 min read
- 4Pips, lots and spreads explained8 min read
- 5Trading costs: spread, commission and swap8 min read
- 6Margin call and stop out: how they work8 min read
Basics
How forex and CFDs work: currency pairs, pips, lots and the orders you place.
- 8 min read
What is forex and how does it work?
How the global currency market works, how a forex trade is priced, and the risks that come with trading it.
- 7 min read
What is a CFD (contract for difference)?
How a contract for difference works, what it costs, and why leverage makes it a high-risk product.
- 8 min read
Going long and short: how buy and sell trades work
A long trade gains if the price rises; a short trade gains if it falls. Both lose money when the price moves the other way.
- 8 min read
Pips, lots and spreads explained
How price moves are measured, how trade size turns pips into money, and what the spread costs you on every trade.
- 8 min read
Order types: market, limit and stop orders
How market and pending orders work, when each one fills, and what can make the fill price differ from the price you set.
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.
- 8 min read
Demo account: practise trading with virtual funds
A demo account lets you learn a platform and practise orders with virtual funds before you decide whether to trade with real money.
- 8 min read
TradeLocker guide: getting started
What TradeLocker is, how to reach it through NextTrade, and how to place a first order on a demo account.
- 8 min read
MetaTrader 5 guide: getting started
What MetaTrader 5 is, how to download it and log in with NextTrade, and how to place a first order on a demo account.
- 4 min read
How to deposit crypto
Fund your account with Bitcoin, Ethereum, USDT, or USDC. Step-by-step walkthrough from wallet to trading, processed on a 24/7 basis.
- 3 min read
How to deposit with a credit or debit card
This guide walks through how Visa and Mastercard deposits work, including 3D Secure verification and troubleshooting declined cards.
Markets & hours
When markets open and close across time zones.
- 8 min read
Forex market hours in Mexico, Colombia, Chile, Peru and Argentina
When the Sydney, Tokyo, London and New York sessions open and close in your local time, and how daylight saving time moves them.
- 8 min read
How to read an economic calendar
What each column and impact rating means, when the main releases come out in your time zone, and what can happen around them.
- 8 min read
Daylight saving time and market hours
Who changes their clocks and when in 2026–2027, what the mismatch weeks do to the London–New York overlap, and what to check in your platform.
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.
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.
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.