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Leverage is a fundamental concept in trading. It allows participants to control a larger position in the market with a smaller initial deposit. This is achieved through borrowing provided by a broker. While leverage can make markets more accessible, it also increases risk exposure. Understanding how leverage functions is important before participating in any leveraged product, such as CFDs. Risk Warning: CFDs are complex instruments and come with a high risk of losing all your invested capital. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your investment. How Leverage Works Leverage is expressed as a ratio, such as 1:10, 1:20, or 1:30 . The ratio indicates how much larger a market position can be relative to the margin deposit required. For example, with 1:10 leverage, a margin of $1,000 allows control of a $10,000 position. The broker provides the additional exposure, but the participant is responsible for m...

The bid-ask spread is one of the most important concepts in financial markets. It represents the difference between the price at which buyers are willing to purchase (the bid) and the price at which sellers are willing to sell (the ask). For CFDs, the spread may include a small markup added by the provider, making it slightly different from the underlying market price. Understanding spreads is essential for interpreting market conditions, liquidity, and the mechanics of order execution. Risk Warning: CFDs are complex instruments and come with a high risk of losing all your invested capital. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your investment. What is the Bid Price? The bid price is the highest price that a buyer is currently willing to pay for a financial instrument. It represents the demand side of the market. For example, if a buyer places an order to purchase shares at $100, that becomes part of ...

Candlestick charts are widely used in technical analysis to visualise price movements over a chosen time period. Among the many candlestick patterns, the Doji is one of the most recognisable and frequently discussed. While it does not guarantee any particular outcome, the Doji can offer insight into market indecision and potential shifts in sentiment. A Doji is a candlestick where the open and close are at, or very near, the same price, highlighting market indecision within that period. Its interpretation depends on context, such as trend, nearby support/resistance, and volume; on its own, it does not predict direction. What Is a Doji? A Doji forms when the opening and closing prices of an asset are at or very close to the same level during a specific time frame. This results in a candlestick where the body appears very small or as a thin horizontal line, with upper and/or lower wicks extending above and below. The appearance of a Doji indicates that neither buyers nor sellers ha...