1. What Are CFDs?

Contracts for Difference allow traders to profit from price changes without owning assets.

Example: Like betting on a car's value without owning it.

2. Pips and Points

1 pip = 0.0001 for most pairs; 0.01 for JPY pairs. A point = 1/10th of a pip.

Used to measure price movement.

3. Lot Size

• Standard: 100,000 units → $10/pip
• Mini: 10,000 units → $1/pip
• Micro: 1,000 units → $0.10/pip

Larger lots = higher risk/reward.

4. Position Sizing

• Account balance
• Risk % (e.g., 1%)
• Stop-loss distance

Controls how much to risk per trade.

5. Leverage

Use borrowed capital to trade larger amounts.

E.g., 1:100 leverage turns $100 into $10,000.

6. Margin & Margin Calls

Margin: capital blocked to open a trade.
Margin Call: add funds or positions get closed.

Avoid overleveraging. Use stop-loss.

7. Forex Analysis Types

• Fundamental (news, interest rates)
• Technical (charts, indicators)
• Sentiment (market emotion)

8. Trader Psychology

Emotions like fear and greed affect decisions. Stick to your plan.

Take breaks. Journal. Use stop-loss.

9. Indicators

• Moving Averages
• RSI
• MACD

Use with price action.

10. Expert Advisors (EAs)

Automated bots that follow coded strategies. Great for consistency, but must be tested well.