1. What you are trading
A CFD is a derivative linked to the price of an underlying market. You do not own the underlying asset.
Start here
Beginner guide to Forex and CFDs
Learn the essential product, pricing, platform and risk concepts before opening a live leveraged position.
8 foundation lessons Plain-language terms Risk before return
Trading leveraged products involves significant risk.
Eight foundation lessons
Understand the mechanics before choosing a strategy
Work through each topic, practise it in demo and check the live symbol specification in MT5.
2. How prices are quoted
The bid is the price available to sell; the ask is the price available to buy. The difference is the spread.
3. Lots and contract size
Volume is entered in lots, while the symbol specification defines how many units one lot represents.
4. Leverage and margin
Leverage increases market exposure relative to required collateral and magnifies profit and loss.
5. Market and pending orders
Market orders seek immediate execution; pending orders activate after a defined price condition.
6. Stop-loss and take-profit
Exit orders support a plan but are not guaranteed at the requested level during gaps or fast markets.
7. Trading costs
Spread, commission, swap, conversion and slippage can all affect the result.
8. Review and risk
Use a demo account, written rules and a defined maximum loss before trading live.
A simple Forex example
EUR/USD expresses the value of one euro in US dollars.
If EUR/USD is quoted at 1.0850, one euro is valued at 1.0850 US dollars in the quoted market. A buy position benefits if the price rises and loses if it falls, before costs.
- EUR is the base currency
- USD is the quote currency
- Bid and ask form the executable quote
- Volume is entered in lots
- Pip value depends on volume and account currency
From idea to order
A five-step demo workflow
Repeat the same sequence until the platform fields and risk calculation are familiar.
Select the symbol
Open the MT5 specification and review contract size, hours, spread, swap and margin.
Write the idea
Describe context, trigger and invalidation before entering a volume.
Calculate risk
Use stop distance and acceptable monetary loss to determine position size.
Place the order
Select market or pending order, volume, stop and target, then review every field.
Record the result
Save screenshots and compare execution and behaviour with the written plan.
Demo versus live
Platform skill is necessary—but not sufficient.
Demo trading can teach order mechanics and help test a process. Live trading adds emotional pressure, real financial consequences and potentially different execution behaviour.
Build a risk planDemo strengthPractise navigation, orders, charts and account calculations.
Demo limitationVirtual funds do not reproduce the psychology of real loss.
Live executionLiquidity, slippage and account conditions can affect fills.
Capital decisionOnly use funds you can afford to lose.
Questions answered
Beginner questions
Build competence one concept at a time.
Do I need a large deposit to learn?
No. Use a demo environment to learn platform mechanics. A Initial Deposit is not a recommendation for an appropriate live balance.
What is the difference between Forex and a Forex CFD?
Forex describes the currency market; a retail Forex CFD is a derivative contract that tracks a currency-pair price through the broker.
Can leverage make a small account profitable quickly?
Leverage can magnify gains and losses. It can also cause a small account to lose funds quickly.
How long should I use demo?
There is no fixed period. Continue until you can use the platform accurately and follow a documented process across different market conditions.
What should I learn next?
Study risk management, MT5 contract specifications, market hours and the economic calendar.
Learn first. Practise second. Fund last.
Use demo access to understand every order field and build a repeatable risk process before trading live.