7 tips for getting started with trading

Trading, not investing.

Phronimos Group allows you to trade the world's largest and most popular markets via Contracts for Difference (CFD). A CFD is a derivative instrument, which means that you are not buying the actual underlying asset. Instead, you buy or sell units of a given financial instrument, depending on your prediction of an increase or decrease in the price of the underlying asset.

Leverage: What is it and how to use it?

CFDs can be traded with leverage, which means you can take a higher position with less initial capital. In other words, you simply deposit a deposit of the value of the trade and then borrow the remainder from your broker.

Leveraged trading is also called margin Trading. This is because the capital required to open and maintain a position (I. E. Margin) is only a fraction of the total trade size.

You can go long or short.

CFD trading gives you the opportunity to profit in both rising and falling markets. You can profit from the appreciation or depreciation of an asset by going long (buying when you predict the market will rise) or short (selling when you predict the market will fall).

What instruments can I trade?

When trading CFDs, you can open positions across a variety of different asset classes, including stocks, indices, currencies, commodities, and cryptocurrencies, on one platform.

How risky is the transaction?

The truth is that all trades are risky. While using leverage means that your chances of making a profit increase, your chances of losing money are also magnified.

Fortunately, Phronimos Group provides all customers negative balance protection so your losses will never exceed the money you put in. In addition, stop Loss and stop Profit Order make sure you're trading with risk under control-protect you from any unforeseen market downturns.

How does the stop loss work?

Stop-loss orders are a key risk management tool. When the specified price is reached, it closes the losing position. Stop losses are used for two main purposes-to prevent losses or to lock in gains.

When a position is in your favor, stop loss can be a useful tool for taking profits, and when the trend changes to a direction that is unfavorable to you, it can save you from greater losses. In times of market volatility, stops are an investor's best friend and help limit the risk of trading.

What are margin requirements?

When trading on margin, you pay only a fraction of the actual price. For example, a 10% margin requirement means that you only need to deposit 10% of the value of the trade you want to open, and the rest will be borne by your CFD provider.

Margin requirements vary depending on the market you want to trade. Phronimos Group currently offer a minimum margin requirement ratio of 2% (maximum leverage 1:50).

If the deposit in your account falls below the specified level, you will receive a margin call to top up your account or reduce your position. In extreme cases, brokers may be forced to close positions for traders.