This trading FAQ for beginners gathers short answers from across the site. Each answer is deliberately brief; the guides linked below carry the full explanation, the worked examples and the calculators. If your question is not here, the glossary may help, or you can suggest it through our contact page.
How the answers are written
We answer in general terms because we do not know your circumstances, and nothing here is personal advice. Where an answer depends on a rule, such as a leverage cap, we give the figure for the UK and EU as a reference point and say so; rules in other countries can be stricter or looser. Every number quoted in an answer also appears, with its working, in one of our guides.
Three misunderstandings we correct most often
"Margin is the most I can lose." It is not. Margin is the deposit held while a position is open; the loss depends on the size of the position and how far the price moves. Negative balance protection stops a UK or EU retail account going below zero, but everything in the account can still be lost.
"A cheap coin has more room to rise." The price of one unit says nothing about value. A coin priced at a fraction of a cent can have a larger total market value than one priced at $40, as our guide to choosing a coin shows.
"A regulated broker protects me from losses." Regulation protects your money from the firm's failure or misconduct, within limits. It does not protect you from the market. A trade that goes against you on a fully licensed platform loses money just as it would anywhere else; the licence only makes sure the firm treats you fairly while it happens.
Where to go next
- Completely new? Start with currency trading in plain English and how the main markets differ.
- Comparing providers? Read ten checks before opening an account and trading fees explained.
- Interested in crypto? Begin with how crypto works, then USDT and Bitcoin.
- Worried about an offer you have received? Read how to spot trading scams before replying.
Reader questions
Is YarixMarkets a broker or exchange?
No. YarixMarkets is an information website. We do not open accounts, accept deposits, execute trades or hold anyone's money or crypto, and we never contact readers offering investments. If someone uses our name to offer you any of those things, they are not connected to us.
What is the difference between forex, stocks and crypto?
Forex is the exchange of one currency for another, traded through a network of banks and dealers around the clock on weekdays. Stocks are shares of ownership in companies, traded on exchanges during set hours through licensed brokers. Crypto-assets are tokens recorded on blockchains, traded every day on many separate venues with far fewer investor protections.
How much money do I need to start?
Many providers allow very small positions, such as micro lots in forex or fractional shares, so the market minimum is low. A more useful question is how much you could lose while learning without it affecting your bills, savings goals or peace of mind. Start below that figure.
What does leverage actually do?
It lets you control a position larger than your deposit. At 30:1, the retail cap on major currency pairs in the UK and EU, a 1% move changes your result by about 30% of the margin used. It increases losses exactly as much as gains, and it does not change the direction the price moves.
What is a pip?
The standard unit of price movement in forex: 0.0001 for most pairs and 0.01 for yen pairs. On a standard lot of a pair quoted in US dollars, one pip is worth $10; on a micro lot it is worth $0.10. The pip calculator works it out for any pair.
How do I know if a broker is regulated?
Find the regulator named on the broker's site, then search that regulator's public register yourself by typing its web address, not by following a link. Check that the firm's legal name, registration number, website and phone number all match. Clone firms copy real registrations, so the contact details matter.
Which costs should I compare between platforms?
Spread, commission, overnight financing, currency conversion, withdrawal and inactivity fees. Convert them all into money for one realistic trade at your size and your usual holding period. A platform with a low spread can still be more expensive overall once financing or conversion is included.
Is crypto safer on an exchange or in my own wallet?
Each carries different risks. An exchange can fail, be hacked or freeze withdrawals; a self-custody wallet puts all responsibility for the seed phrase and every transfer on you. Many people keep small working amounts on an exchange and larger amounts in a wallet they control, but the right split depends on your confidence with keys.
Can anyone guarantee trading profits?
No. Any promise of guaranteed or fixed returns from trading is a strong sign of fraud. A fixed 2% a day, compounded for a year, would turn $1,000 into more than $1.3 million, which no genuine market delivers. Regulated firms must warn you that you can lose money.
Does YarixMarkets recommend specific coins, shares or brokers?
No. We explain how things work and how to compare them, and we leave the decision to you. We do not rank providers, name picks, publish price predictions or accept payment for mentions.