Trading involve risks and are not suitable for all investors. Please ensure you fully understand the risk involved.

Mitrade Academy

Trading Account Status

Whenever you’re trading, you will encounter these terms and information about your trading performance. Net P&L: The profit and loss for all open positions. How to calculate: the total of P&L of all open trades + (daily Overnight Funding rate x number of days). Balance: The amount after last closed trade. How to calculate: Deposits […]

What is Margin?

Table of Contents We discussed in the earlier lessons about how Margin and Leverage goes hand-in-hand. In this chapter, we will understand more about margin, what is it, and the difference between initial margin and maintenance margin. So what exactly is initial margin? and how does it work? Margin is not a cost; however, Margin […]

What is Leverage?

Table of Contents We’ve discussed this previously. Leverage allow traders to use a smaller capital to trade larger amounts of money by utilizing margin. What exactly is Leverage and Margin? The textbook definition of Leverage; it refers to the the ability to control a large amount of money by the use of a significantly smaller […]

What is a Lot? Volume and Lot Sizing in Forex

Table of Contents Definition A “lot” is a unit for measuring trading amount. For example, 1 lot of London gold is 100 ounces, and 1 lot in FOREX trading represents 100,000 base currency instead of 100,000 dollars. If your base currency is the US dollar, 1 lot represents USD100,000; if your base currency is the […]

What is a Pip?

Table of Contents Definition of a Pip The unit of measurement to express the change in value between two currencies is called a “pip”, also referred to as price interest point. A pip is the smallest whole unit price move that an exchange rate can make, based on forex market convention. Most currency pairs are […]

What is Spread?

Table of Contents When traders trade through foreign exchange brokers, they will see two different prices displayed: buying price and selling price Buying price (ASK): The buying/ask price refers to the price that traders can BUY the base currency in exchange for the quote currency from the broker.Selling price (BID): The selling/bid price refers to […]

Benefits and Risks of Trading CFDs

Table of Contents Quick Glance Benefits of CFDs Risks of CFDs Global Markets access in one platform Loss of Principal Ability to trade both directions of the market Forced Liquidation Trade with Leverage Price Fluctuations Lower Trading Costs Counterparty Risk Benefits of CFDs Trading CFDs have benefits in the following aspects: Global Markets access in […]

Why do we trade CFD?

Table of Contents Why trade CFD A CFD is only binding on the future price of a financial product and does not involve its substantive control. In traditional stock trading, you have to be a shareholder before you can enjoy the rights to rises or declines in stock prices. In CFD trading, however, you can […]

What is a CFD?

Table of Contents What is Contract for Difference (CFD) CFD is a financial derivative instrument that enables traders to trade on financial contracts with margins and leverage. Derivatives are financial investments that are derived from an underlying asset. Traders do not actually trade commodities, but only trade the price of commodities to profit from price […]

Trading vs Investing

Table of Contents The age old question; Trading or Investing, which is better? Truth is, one is not above the other. While the terms are used interchangeably, however there are key differences between “trading” and “investing” While both fundamentally seek profits through participating in the financial markets. Investing and trading adopt two very different approaches. […]

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