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What is CFD / Forex

What is an Online CFD Trading? The difference between where a trade is entered and exited is the contract for difference (CFD). A CFD is a tradable instrument that mirrors the movements of the asset underlying it.

In trading CFD / Forex for beginners, there is a risk involved. This is no “all or nothing” method of trading. If you have a good idea of what the price movement of an asset might be and you can predict this, then a lot of money can be made potentially. However, a lot of money can also be lost.

Option500 provide beginners with excellent initial learning materials, video tutorials, tips, effective financial news, helping signal and more.

You did your homework? Its time to start a small trading, this way you will gain a good understanding of the “inner workings” of the forex trading systems. This is almost a “risk free” practical approach. You will need to start to formulate your own strategies. You will need to understand the movement of different stocks operating across the markets. You will gain confidence in predicting what will happen to different stocks. This is not an easy skill to master, but this is worth persevering. Once you understand how to make sound predictions, then you have the “edge”, and may start trading big and to make serious money.

Forex Signals

Understanding FX  signals is an important element for successful trading for beginners. These are designed to simplify and streamline the whole process of  Forex trading. With Option500 trading signals for beginners, you should start to make more sense. These will make your life easier, As a beginner trader, the signals can tell you what a possible good investment is and how to go about making that investment. Also remember, trading is worldwide. There are many trading centers. The important ones at present are New York, the City of London, Frankfurt, Hong Kong, Shanghai, and Singapore. There are many other centers. This is a world system operating 24/7. Shifts in the markets can be taken in milliseconds. Changes in different commodity markets can ripple rapidly around the whole planet, very quickly. Use your smartphone, tablet, laptop PC or video feed, to see these transactions as they happen.

A typical signal message will tell you what time the investment is active and valid. It will tell you the currency that is being used, for example, US Dollar, Euro, Yen etc. If the message states “Call”, the prediction from the signal provider will be that of the commodity price, for example, will go up. If on the other hand the message states it is a “Put”, the price prediction is that the commodity price might fall. If you decide to trade later than the specified time, then there may be a reversal in the commodity price, or there may be even more or a change in the price.

Now Let’s start trading, At the beginning, Sign up and Deposit the minimum amount, use what you learned and start earning money.

In trading of financial instruments such as the Forex And CFD’s, You as a trader must study the market to formulate your strategy. You make an informed decision. If yobelievees the market is rising, you would purchase a call. If you believes the market is falling, you would buy a put.

In a call, the traders gain profit if at the expiry time of the trade, the bet price is above the strike price. On the other hand, traders gain profit in a put when the bet price is under the strike price. All the details such as the expiry, the strike price, etc. are determined prior to the start of the trade.

Now let’s Examine Strategies for the Intermediate level Traders

The following are 3 strategies in CFD / Forex for Intermediate Traders:

First, is the reversal strategy. This strategy is normally used when an asset experiences a sudden swing to a direction other than its usual course. However the case, traders believe that abrupt changes will not last long and the asset is bound to return to its natural course. For traders to make money on this, they will purchase a call or a put option in accordance with the initial movement. They invest on the potential rebound movement. There may be short term or long term reversal strategy, but the former is more usual. For this to work using Call option, the condition should be the presence of a downward trend for 2 hours on a 1-minute chart. Once this situation is established, the trader should place a call option trade for up to 10-min expiry on the lowest price on the present trend. For put trades, the set-up is comparable but on the reverse. An upward trend must be present for 2 hours on a 1-minute chart. If established, traders are to buy a Put option trade up to 10- minute expiry placed on the highest price of the trend. There are no indicators in this strategy but the price analysis. External factors are often abandoned.

Another is the Market Pull Strategy, often dubbed as the crowd favorite. This strategy is used only when the trader has a mastery of the effects of the fluctuation in the price of a particular asset to another different asset, also known as the Knock on Effect. For instance in Forex currency pairs trading, there is a usual inverse relation between USD/CHF currency and EUR/USD currency pair. Putting a call on the other, while a put is in another may be a good strategy.

Lastly, we have the double trading strategy. This one is adopted largely by traders who have a good grasp of the current state of the markets. Those who are always on top of things go around. This is done when they have previously purchased an asset and realize that the movement is in their favor. For instance, their shares in Nikkei are making a considerable profit. To benefit further in this situation, they will enter into a CFD trading, knowing that the recent movements are indicative of a possible increase or decrease of asset value.

Although you are an intermediate trader and not a beginner it is best to always remember about CFD / Forex that regardless of how simple the mechanics are, it is more than a simple Yes or No answer. It involves a tedious skill to master, good analysis of the market, and a bold character. And we are here to provide you with the best and secured platform for your successes trades and earning money!

How to become a CFD / Forex Advanced Trader?

We in Option500 will provide you with all the tools, and learning materials to become a CFD advanced trader.

If you are a beginner trader or intermediate trader, please visit first the relevant pages, learn and watch our videos and then come back here and learn more about advanced trading.

The simple logic behind trading CFD / Forex for advanced traders entails a lot of basic understanding of when and how you manage the investment you are willing to put in it. The full mechanics of CFD lets us assess the probability of a certain stock or any asset, whether it would increase in value or not at a certain period whether by the minute, hour or day.

To become an advanced trader you must know as many trading strategies as there are, you must follow the financial news every day on papers & websites (Be sure to go over the economic calendar we provide). You must learn how to “read” the market changes and use the market signals we provide.

Well… you think you ready to become an advanced trader? Start learning new trading strategies

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