This trading FAQ for beginners answers the questions that come up again and again, across forex, stocks and crypto. Each answer is deliberately short; follow the links for the full explanation. If your question is not here, the glossary may help, or you can contact us about the site's content.
Where to go for more detail
- Markets: how forex, stocks and crypto compare
- Choosing a firm: ten checks before opening an account
- Costs: trading fees explained
- Safety: how to spot trading scams
Reader questions
Is AltixTrader a broker, exchange or trading platform?
No. Despite the name, AltixTrader is an independent information website. We do not open accounts, take deposits, execute trades, provide signals or manage money. Anyone offering those services in our name is not connected to us.
Which is the best forex platform?
There is no single answer, and we do not rank real firms. The right platform is one that is authorised in your country, holds client money separately, publishes all its costs and lets you withdraw without obstacles. Our broker checklist shows how to test this.
How does forex trading work?
You buy one currency while selling another, hoping the exchange rate moves in your favour. Moves are measured in pips, positions in lots, and most retail trading uses leverage, which magnifies both gains and losses.
What is the difference between investing in shares and trading CFDs?
Buying a share makes you a part-owner of the company. A CFD is a contract with a provider that pays out the price change; you never own the share, and it is usually leveraged.
What is USDT?
USDT is a stablecoin issued by Tether that aims to stay worth one US dollar. It runs on several blockchains, so the sending and receiving networks must match. It is not a bank deposit.
How much of my account should I risk on one trade?
There is no rule that suits everyone, but many traders keep the potential loss on any single trade to a small percentage of the account so that a run of losses does not end it. Our position size calculator turns that limit into a lot size.
Is leverage dangerous?
Leverage magnifies every move against you as well as for you. That is why UK, EU and Australian regulators cap retail leverage at 30:1 on major currency pairs and lower on riskier assets.
Why do platforms charge swap fees?
A leveraged position held overnight is effectively financed with borrowed money, so the provider charges or pays interest, adjusted for its markup. Most platforms triple it on Wednesday to cover the weekend.
How can I tell if an investment offer is a scam?
Be very wary of contact you did not ask for, guaranteed returns, pressure to act quickly, payment in crypto to an individual, and any fee demanded before a withdrawal. Check the firm on the regulator's register yourself.
Is a demo account a good way to learn?
It is a safe way to learn how a platform works and to practise risk rules. It cannot reproduce the emotions of real money or every real-world cost, so start small when you move to a live account.