At Finnatrix, we believe that education is the foundation of successful trading. Our Education Center is designed to answer your most important questions and introduce key trading concepts—whether you’re just starting out or refining your strategies.
💱 What is Forex (FX)?
“Forex” stands for foreign exchange—a global, decentralized market where currency pairs like USD/JPY are traded. The value of a pair reflects the exchange rate between two currencies.
Trading Hours: Forex markets operate 24/5, with sessions rotating across major financial centers. Peak activity typically occurs during overlap periods, such as the London-New York session.
📊 What is CFD Trading?
CFDs (Contracts for Difference) let traders speculate on the price movement of assets—such as stocks, currencies, and commodities—without owning the underlying asset. Traders profit from the price difference between the entry and exit of a position.
🌾 How are Commodities Traded?
Commodities like gold, oil, and agricultural goods are traded through futures contracts, allowing traders to speculate on price changes without direct physical exchange. Pricing fluctuations determine who gains or loses when the contract expires.
⏱️ What is Day Trading?
Day traders execute multiple trades within a single trading session, using news, economic data, and technical signals to capitalize on short-term price movements. All positions are closed before the market ends for the day.
📩 How Are Forex Signals Shared?
Trading signals are short recommendations provided by analysts. These include asset suggestions, entry/exit points, and trade direction. Signals are shared via SMS, email, or mobile notifications.
💰 What is Margin?
Margin trading lets you open larger positions than your balance allows by borrowing funds. Your broker may adjust required margin to manage risk. If funds are insufficient, the position can be automatically closed.
📉 Understanding Technical Analysis
Technical analysis predicts future price movement using past price and volume data. Analysts study price charts and indicators (like histograms) to identify trends, patterns, and trade opportunities.
🔍 What is a Spread?
The spread is the difference between a broker’s buying and selling price. It’s measured in pips and can be fixed or variable. A smaller spread typically benefits the trader.
📏 What is a Pip?
A pip (Percentage in Point) is the smallest unit of price change in the forex market—usually 0.0001, except for JPY pairs (0.01). Pips help measure movement, spreads, and profits.
↕️ Long vs. Short Positions
Long: You buy in anticipation of a price increase.
Short: You sell borrowed assets expecting a price drop, then buy back at a lower rate to profit.
💱 What Determines Forex Rates?
Exchange rates are driven by supply and demand. In some countries, governments control rates using large currency reserves or fixed pegs.
📄 Options vs. Futures
Futures: A binding agreement to buy/sell at a set price on a future date.
Options: A non-obligatory right to buy/sell at a specific price within a timeframe.
⚙️ How Does Technical Analysis Help Manage Risk?
By studying price patterns and historical data, technical analysis allows traders to anticipate market behavior, improving accuracy and reducing potential risk.
📉 Can Options Reduce Risk?
Yes. Options provide leverage at a lower cost than buying stock outright, enabling diversification and downside protection.
📚 Want to Learn More About Day Trading?
Day trading requires market awareness, quick decision-making, and strategy. Deepen your knowledge through our video tutorials, articles, and real-time analysis.
📉 When to Short a Stock?
Short selling is most effective when:
A company is underperforming
Market sentiment is negative
Macroeconomic indicators (e.g., interest rate hikes) point to a downturn
Finnatrix empowers traders with trusted tools, real-time insights, and expert education to help you trade smarter every day.
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