This trading FAQ for beginners gathers the questions that reach us most often. Each answer is deliberately short; the linked guides go further. If your question is not here, the glossary may define the term you need.
Three principles behind every answer
Mechanics before opinions. We explain how something works (a pip, a margin call, a stablecoin's reserves) rather than whether you should use it. Once the mechanics are clear, most decisions become easier to make for yourself.
Costs and risks first. A possible gain is only half of any picture. Every answer that touches on trading mentions what it costs and what can go wrong, because those are the parts marketing tends to leave out.
Local rules differ. Leverage caps, investor protections and tax treatment depend on where you live and which firm you deal with. Where we quote a rule, we say which jurisdiction it belongs to.
Questions we cannot answer
Some questions arrive often but fall outside what an information site can responsibly do. We cannot say whether a particular trade, coin or share is a good idea, which provider to choose, what a price will do next week or how a specific transaction will be taxed for you. Those answers depend on your circumstances, on information we do not have, or on the future. Where they matter, an authorised adviser, your tax authority's guidance or the regulator's own publications are the right places to go.
Learning without spending money
Almost everything worth understanding before a first trade can be learned for free. Read the guides in order, work through the calculators with your own numbers, and use a provider's demo account to see how orders, margin and financing appear on a real platform. Keep a written log of practice trades, including the reason for each one and what happened. If the log shows you cannot follow your own rules with play money, real money will not make it easier.
Where to read more
- Currencies: how forex trading works and EURUSD explained.
- Shares: how the stock market works and the FTSE 100 index.
- Crypto: how crypto works, USDT and Bitcoin.
- Safety and costs: spotting scams, checking a broker and trading fees.
- Numbers: the pip, position size, margin and crypto profit calculators.
Reader questions
Is TradoGlobal a broker or an exchange?
No. TradoGlobal is an independent information website. We do not offer accounts, accept deposits, hold assets or carry out trades, and we never contact readers with investment offers. Anyone who uses our name to offer those things is not connected to us.
What is forex trading?
Buying one currency while selling another, in pairs such as EUR/USD. The price tells you how much of the second currency one unit of the first costs. Retail traders usually use leveraged contracts with a provider, which magnify both gains and losses.
What is a pip?
The standard unit of price movement in a currency pair: 0.0001 on most pairs and 0.01 on pairs quoted in yen. On one standard lot (100,000 units) of a pair quoted in US dollars, a pip is worth $10. The pip calculator converts other pairs.
How much leverage can a retail trader use?
In the UK and EU, CFD leverage for retail clients is capped at 30:1 on major currency pairs, 20:1 on other pairs, gold and major indices, 10:1 on other commodities, 5:1 on individual shares and 2:1 on crypto. US retail forex is capped at 50:1 on major pairs and 20:1 on others.
Is gold traded like a currency?
On many platforms, yes. Spot gold is quoted as XAU/USD in dollars per troy ounce, with a standard lot commonly 100 ounces, so a one-dollar move is worth $100 per lot. It pays no interest, and overnight financing applies to leveraged positions.
What is the difference between a share and a crypto token?
A share is legal part-ownership of a company, with a claim on its profits and usually a vote. A token is an entry on a blockchain whose rights depend entirely on how it was designed; many carry no claim on any income or assets at all.
Is USDT the same as a dollar?
No. It is a token issued by Tether that aims to be worth one dollar and is backed by reserves the company reports on. It has no bank deposit protection, can be frozen by its issuer and depends on the sending and receiving networks matching.
What costs should I expect when trading?
Spreads, possibly commissions, overnight financing on leveraged positions, currency conversion, account fees and, in some markets, taxes on purchases, such as UK stamp duty on shares. Overnight financing matters most for positions held a long time; annual fees matter most for long-term holdings.
How can I tell whether a trading platform is genuine?
Check the regulator's own register, contact the firm only through the details listed there, and check the regulator's warning list. Be wary of guaranteed returns, deposit bonuses, pressure to act fast and requests to pay a personal account or a crypto address.
Does TradoGlobal give investment advice?
No. Our pages explain how markets and products work. They do not take your circumstances into account and are not recommendations to buy or sell anything. For personal advice, speak to an adviser authorised in your country.