Introduction to Trading

Trading CFDs

A CFD (contract for difference) is a financial derivative that mirrors the movement of an underlying asset, enabling traders to go long or short depending on their market view.

CFD trading is free from Stamp Duty in the UK. Profits are liable for Capital Gains Tax, but losses can be offset against profits elsewhere.

CFD trading is usually done on leverage, which maximizes profits and losses. Trade sizes are defined in lots. There are no expiry dates to CFDs, except on futures.

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Don’t want to trade? You can invest with Markets.com too

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Key Trading Terms Explained

Before you begin trading, it can be useful to understand a few key terms that you may encounter. Trading is complicated, so we recommend you do your research and sign up to our demo account to practice trading in a risk-free environment before investing your own funds. This list of terms is by no means exhaustive.

Bear Market/Bearish


A market in a downward trend, or a period of falling prices.

Bull Market/Bullish


A market in an upward trend, or a period of rising prices.

Day Trading


Day trading is the buying and selling of financial instruments within the same trading day.

Execution


When an order to buy or sell has been completed, the trader has executed the transaction.

IPO


The Initial Public Offering is the first sale or offering of a stock by a company to the public.

Spread


A spread is the price difference between what an asset is purchased for and what the same asset will sell for.

Leverage


Leverage allows you to trade more shares than you pay for, with the goal of increasing profit. it means you can have a small amount of capital in your account controlling a larger amount in the market. Alongside a possibility for larger profits, also comes a much higher risk than trading without leverage.

Margin


Margin is the amount of money that a trader must put forward in order to place a trade and maintain the position. Margin is not usually considered a transaction cost, but is instead a security deposit for the broker while a trade is open.

Trading Tools

Better insights into the market gives you more understanding, which can help you make crucial decisions when it comes to your trades.

Marketsx provides you with insight and analysis from a market-leading range of exclusive fundamental, technical and sentiment tools. The tools can be used by all, from beginner traders to experienced professionals. Our 14 trader tools provide unparalleled insight into the market. Long term, short term, you can trade on your terms.

Fundamental

Fundamental


Fundamental tools looking at the macro- and micro-economic factors, from in-platform news feeds to economic calendars – essential tools for trading any market.

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Technical

Technical


Marketsx boasts dozens of powerful indicators and oscillators for technical trading strategies. Use indicators like Elliott Wave, Fibonacci Retracement, Gann, MACD, RSI and many more to give your trading an edge.

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Sentiment

Sentiment


Investor confidence indicators, hedge fund and other client positioning data, news sentiment tools that give an overview of the media coverage – sentiment signals are powerful additions in your trading toolbox.

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Join Markets.com to Experience Marketsx

Markets.com is the state-of-the-art trading platform provided by Markets.com. As part of the TradeTech Group, a constituent of Playtech, a FTSE 250 listed company, at Markets.com we have deep knowledge of the financial markets and an incredible range of resources to continually raise the bar in the world of financial trading.

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Products

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  • Strategy Builder

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Products

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