A CFD is an investment style that defines a type of derivative that gives exposure to the change in value of an underlying asset. CFDs allows traders to leverage their capital and provides all the benefits of trading securities, without actually owning the product. Refer to gearing or leverage for more information. CFDs or contract for difference is one of the fastest growing investment vehicles in the world and are regulated by the financial conduct authorities. (ASIC)
One of the 4 types of underlying assets. Currencies are always in pairs. The three types of pairs are: major, minor, and exotic. Examples include EUR/USD, USD/CAD, and more.
In the commodities market traders invest in contracts for assets, this is needed to keep the assets standardized and make speculating easier. In the context of CFD the contract is the definition of the asset being traded and the rules and specifications for that asset trade.
Commodities are marketable good or service that are produced to meet a demand, whether that be a want or a need. Commodities are also interchangeable with others of the same type. In the financial markets commodities refer to energy, metals, agricultural, and more. Speculators buy and sell commodities but usually do not ever take delivery.
Close means the end of a trading period, In the share market it is the end of the trading day but in Forex which traders 24 hours a day, can be the end of a time period (such as at trade rollover) or the end of day at midnight.
Close is also what you do when you want to end your position. The process of stopping (closing) a real trade by executing a trade that is the exact opposite of the open trade.
For each asset, you can plot a chart of price movements over a specific time period. This is an important tool, allowing traders to analyze historical prices and forecast future activity. A chart is a picture of image of price movements. Patterns develop on charts which help traders understand market movement and trader psychology.
This is one of the oldest charting methods as well as a trading system. Japanese candlesticks were developed by rice traders in the 1700’s. A candlestick is drawn on a financial chart to represent the movement of an asset in a specific time period. The wicks denote the highs and the lows and the body of the candle shows the move between the open and the close. Candlesticks are colored in bullish and bearish color codes depend if the price moved up from the open to the close or declined from the open to the close. There are over 32 distinct candlestick patterns and offer great trading insights