8 steps to start trading
A structured learning process can make trading easier to understand. Work through these steps in order and avoid rushing into a live position before you understand the basics.
Understand how trading works
Learn Buy, Sell, CFDs, leverage and margin.
See a simple trade example
Understand what happens when price moves for or against a position.
Research the available markets
Compare forex, shares, indices, commodities and other markets.
Understand risk and risk controls
Know how losses happen and which tools can help manage risk.
Learn trading styles and strategies
Explore position, swing, day trading and scalping, plus common strategy types.
Create a trading plan
Set your market, entry, exit, trade size and risk rules before acting.
Practise with a demo account
Learn the platform and test your process using virtual funds.
Move to live trading only when ready
If live trading is suitable for you, start carefully and keep risk limits in place.
1. Understand how trading works
Trading means taking a position on how you think the price of a financial market may move. Depending on the product, you can choose Buy when you expect the price to rise or Sell when you expect it to fall. With CFDs, you trade the price movement without owning the underlying asset.
Buy / Long
You expect the market price to rise. If it rises after you open the position, the trade may gain value.
Sell / Short
You expect the market price to fall. If it falls after you open the position, the trade may gain value.
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Leverage and margin 101
Leverage allows a trader to control a larger market exposure using a smaller amount of their own funds. The amount required to open the position is called margin. Because profit and loss are calculated from the full position size, leverage can increase losses as well as gains.
Leverage
A tool that increases market exposure relative to the funds committed to the trade.
Margin
The portion of your funds required to open and maintain a leveraged position.
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What is the bid-ask spread?
The spread is the difference between the Sell price (bid) and the Buy price (ask). It is one of the trading costs you should check before entering a position.
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Why the trading platform matters
A trading platform is where you view prices, charts, market information and your open positions. For beginners, the most useful platform is one you can understand clearly and practise on before risking real funds.
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2. See a simple trading example
Imagine you research gold and believe the price may rise. You choose Buy and open a small position. If the market rises and you later close at a higher price, the position may show a gain. If the price falls instead, the position may show a loss. Trading costs can also affect the final result.
If the view is correct
The price moves in the expected direction. The trade result depends on the size of the price move, position size and costs.
If the view is wrong
The market moves against the position. The loss also depends on the size of the move, position size and costs.
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3. Research the markets available to you
Different markets respond to different information. Beginners usually learn faster by focusing on one or two markets first, rather than trying to understand everything at once.
Forex
Currency pairs such as EUR/USD. Prices can respond to interest rates, inflation and economic data.
Shares
Individual company prices. Company results, forecasts and industry news can matter.
Indices
Groups of shares representing a market or region, such as a major stock index.
Commodities
Markets such as gold and oil, influenced by supply, demand and global events.
ETFs & Bonds
Products linked to baskets of assets or fixed-income markets, depending on availability.
Other markets
Some providers also offer additional instruments. Check product availability and trading conditions first.
4. Know the risks of trading and how to manage them
Trading involves the possibility of losing money. Leveraged products can magnify market movements, so a clear risk process is essential before you trade live.
Stop-loss order
Can close a position when the market reaches a chosen loss level. Normal stops can be affected by slippage.
Limit / take-profit
Can close a trade automatically when a chosen favourable price is reached.
Price alerts
Notify you when a selected market reaches a specified level so you can review it.
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5. Learn about trading styles and strategies
A trading style describes how frequently you trade and how long positions are usually held. A strategy is the method you use to decide when to enter or exit. They work together, but they are not the same thing.
Position trading
Longer-term approach. Positions may be held for weeks, months or longer.
Swing trading
Medium-term approach. Positions may last for several days or weeks.
Day trading
Short-term approach. Positions are usually opened and closed within the same day.
Scalping
Very short-term approach involving frequent decisions over short periods.
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Trend trading
Looks for sustained upward or downward movement and follows the prevailing direction.
Range trading
Looks for repeated movement between support and resistance zones.
Breakout trading
Looks for price moving beyond an established range or level.
Reversal trading
Looks for signs that an existing move may change direction.
6. Create a trading plan
A trading plan is a set of rules that helps you make decisions consistently. It should reflect your knowledge, available funds, risk tolerance and the market you intend to trade.
Choose the market
Focus on instruments you understand.
Define the setup
Write down what needs to happen before you enter.
Plan entry and exit
Know your entry level, stop level and profit target before placing the trade.
Set position size
Choose a size that fits your risk limit rather than your emotions.
Review the result
Record what happened and whether you followed your plan.
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7. Start by practising on a demo account
A demo account can help you learn how the platform works, practise opening and closing positions, and test whether your trading plan is clear enough to follow. Virtual funds remove real-money risk while you learn, although demo conditions may not fully reproduce the emotions of live trading.
8. Move to live trading only when you are ready
If you understand the product, have practised your process and decide that live trading is appropriate for you, start carefully. A live account adds real financial risk, so your position size and risk limits matter more than speed.
Create and verify your account
Complete the required account and identity checks.
Fund only when you are ready
Use an amount that fits your circumstances and do not use money needed for essential expenses.
Start with your plan
Choose the market, position size and risk controls before entering.
Keep reviewing
Continue learning and review whether each trade followed your process.