CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you can afford to take the high risk of losing your money.

Here’s a handy guide to all those financial terms you here

Please choose a letter to see the list of terms.

Glossary of terms

# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
There are currently 2 glossary in this directory beginning with the letter V.
img Virtual Trading

Virtual trading is what werefer to when we talk about demo account trading. A demo account is a virtual trading platform used by novice traders (or experienced traders looking to practice new strategies) before committing to a live account to ensure they feel relaxed and happy with the trading platform or new trading strategy.

A demo account helps you get familiar with the dynamics of the market and how orders are placed. Different financial instruments will be impacted by different factors. So, use a virtual trading platform to start slow and be patient.It also helps you determine whether such investments are well-suited for your trading style and financial goals. Always, remover avoid trading too many financial instruments at once, especially if you are new to trading.

Remember that successful trading is about making informed and confident decisions, assessing the potential, and understanding the risks involved. Every market has its idiosyncrasies that one learns over time. Having too many financial instruments may make your portfolio extremely difficult to manage or even unmanageable.

Practice and expertise are needed to make trading work for you. You need to understand how to manage your emotions and also familiarise yourself with the stop-loss and take-profit functions available on your virtual trading platform.

Key Takeaways
  • Good traders do not exist – only good risk managers!!!
  • Virtual trading is what we refer to when we talk about demo account trading.
  • A demo account helps you get familiar with the dynamics of the market and how orders are placed.
img Volatility
If the price of the asset is unstable and changes frequently, with big spikes from time to time, the asset is said to have high volatility. On the other hand, if the price is consistent and stable over a long period, the asset is said to be less volatile.As a new trader you must decide if trading during highly volatile trading session is part of your strategy or if you feel more comfortable during times of quieter market movements. If you’re looking for a lot of market movements then you might schedule those times when different trading sessions overlap into your trading strategy. These timings can vary depending on which products and how many different asset classes you trade.

The commodity market is characterised by high near-term volatility. Sometimes, even a relatively small incident can cause a large swing in prices. In 2020, crude prices plummeted to the point where there was more supply than demand and companies were paying people to take the oil off their hands. Especially in Saudi Arabia, which is among the world’s largest oil-producing countries.

The volatility calculator helps traders employ money management strategies by reducing their position sizes at times of high volatility. It computes historical volatility in real-time for each currency pair using past information on exchange rates for several timeframes which can range from one week to one year.

Key Takeaways
  • Volatility is the measure of price fluctuations on an asset over a given time period.
  • Do your research, it is important to gain some knowledge of trading and the factors impacting market prices.
  • A volatility calculator helps traders employ money management strategies.

Ready to EMPOWER your learning? Try the Free DEMO trading account.

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CFI Financial Group is an award winning global financial markets provider with regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads and zero commissions, professional services, dedicated support and powerful tools.

With over 22 years of group experience, and recently awarded “Best Online Financial Trading Services, Middle East” for 2020 by Capital Finance International, Credit Financier Invest brings their award-winning CFD platform to London.

CFI Financial Group also has regulated subsidiaries in
Larnaca • Beirut • Amman • Dubai • Port Luis

Credit Financier Invest Limited
16 Berkeley Street
London
W1J 8DZ
+44(0)20-3907-4131
+44(0)20-3907-4132
uk@cfifinancial.com

CFI UK is authorised and regulated by the Financial Conduct Authority (FCA) in the United Kingdom, 828955. Company Registration Number, 11634673

Important Disclaimer:
CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail investor accounts lose money when trading CFDs with Credit Financier Invest Limited. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financier Invest Limited provides general information that does not take into account your objectives, financial situation or needs We recommend you read our full Risk Disclaimer.

We do not currently offer our investment /ancillary services to residents of certain jurisdictions such as but not only USA, Sudan, Syria, Republic of Korea and Belgium.

CFI does not offer advice, recommendation or opinion with respect to buying, selling or holding of CFDs. We do not issue financial and/ or otherwise advice to clients.