Trading Basics – B2PRIME

Trading is a hobby that sharpens your thinking, teaches patience, and opens your eyes to how the world economy works.

What Is Trading?

Trading means buying and selling financial assets (like gold, currencies, or indices) with the goal of profiting from price movements.

Example:

You think gold will rise in price. You buy 1 ounce at $1,900. A day later, it’s worth $1,950. You sell it. Your profit: $50.

You can trade:

Currencies (e.g., EUR/USD)
Metals (e.g., Gold, Silver)
Indices (e.g., S&P 500)

Why Can You Profit?

Because brokers allow you to trade with leverage — this means you can trade with more money than you actually have.

Let’s say you deposit $100 and use 1:100 leverage. That gives you access to a $10,000 trade.
If the price moves in your favor, you earn as if you had $10,000 — not just $100.

But: this also increases risk. You can lose more, too.
And since the broker lends you this “buying power,” they charge:

A commission per trade
A swap fee (overnight fee) if you keep the trade open longer than a day

Your goal isn’t just to make profit — it’s to earn more than you pay in fees.

What’s in a Trade?

To open a trade, you need to:

Choose an asset — like oil, gold, or a currency pair
Set the volume (lot size) — the bigger the volume, the more you can gain or lose
Pick direction —
- Buy if you think the price will go up (executed at Ask price)
- Sell if you think it will drop (executed at Bid price)

What’s behind every trade:

Margin: A portion of your funds that’s “locked” as collateral
Equity: Your balance plus/minus your open trades
Spread: The small price gap between Buy and Sell
Commission: A broker fee shown before you place your trade

All of these are displayed on your platform (B2TRADER or cTrader) before you hit “Confirm"

How to Read CFD Symbols and Prices

CFD trading means speculating on how the price of an asset will move — without actually owning it.

Example: EUR/USD

Each CFD symbol shows one asset versus another.

EUR = Euro (base asset)
USD = U.S. dollar (quote asset)

If EUR/USD = 1.1000, it means €1 = $1.10.

When you open a trade, you’re predicting whether the base asset will rise or fall compared to the quote one.

Buy (Long): You expect the Euro to rise against the Dollar.
Sell (Short): You expect the Euro to fall against the Dollar.

Example:

EUR/USD rises from 1.1000 → 1.1200 → Euro got stronger → buyers profit.
EUR/USD falls from 1.1000 → 1.0800 → Euro got weaker → sellers profit.

Why So Many Decimal Places?

CFD prices (especially for currency pairs) often show 4 or 5 digits after the decimal — for example, 1.12345.

The 4th digit = pip (the standard unit of price movement).
The 5th digit = pipette (a fraction of a pip).

So if EUR/USD moves from 1.1000 → 1.1001, that’s a 1-pip move.

👉 The number of decimal places — and how many pips or ticks make up one price move — depends on the symbol or market type.
For example, most forex pairs move in pips (0.0001), while indices move in points and gold in cents.

Even tiny moves matter: when you trade with leverage, small price changes can lead to real profit or loss.

What Is a Lot?

In trading, volume is measured in lots.

1 lot = 100,000 units of the base currency in Forex
(e.g., 1 lot of EUR/USD = €100,000)
You can trade smaller sizes:
- 0.1 lot = mini lot = 10,000 units
- 0.01 lot = micro lot = 1,000 units

Example:
You open a 0.1 lot trade on EUR/USD. If the price moves by 10 pips in your favor, you’ll earn roughly $10 — depending on spread and commission.

Try It Yourself

Nothing beats hands-on experience.

Choose a platform (like B2TRADER or cTrader)
Open an account — real or demo
Pick any market (oil, gold, or a currency pair)
Place a simple Buy or Sell trade

Watch how the price moves in real time — your trade will go into profit, then into loss. That’s completely normal.

If you set a Stop Loss or Take Profit, the trade will close automatically. Otherwise, you can close it whenever you choose.

Then, check:

How much margin was used?
What was the commission?
Was there a swap fee for holding overnight?

This is how you learn:
By seeing how everything works — from fees to price movement — right on your screen.

Now you know how to place a trade, where to find all the terms, and what affects your results.

How to Forecast the Market

How do you know which direction to trade?

You can rely on:

Economic Calendar
Track news events like interest rate decisions or job reports — they impact the markets.
Chart Analysis
Use indicators and technical tools to spot trends or levels (for more advanced traders).
Trading Communities
Platforms like TradingView show what other traders are doing and saying. You can learn a lot just by following them.

What’s a strategy?
A strategy is a plan — when to enter, when to exit, how much to risk.

For beginners:
You don’t need to master everything from day one.
Start by copying strategies, trading around news, or following others.
Learn by doing — at your pace.

Risk Management: The Real Key to Success

Before you trade, decide how much you're ready to invest:

Per trade
Per day
Per week

Start small. Don’t risk more than you’re ready to lose — mentally and financially. This isn’t just about protecting your balance — it’s about building confidence and trading habits that last.

Remember:
A trade can move both ways. You might open a position and see it go into loss… then back into profit later. That’s normal.
Sometimes, the price goes in your favor — and you hold on, hoping it will rise even more.
But the market can turn at any time.
That’s why it’s important to take profit when the opportunity is strong, and consider opening a new trade instead of waiting too long.

To protect yourself:

Use a Stop Loss — it auto-closes your trade if the market moves too far against you.
Use a Take Profit — it locks in your gain when your target is hit.

What if you don’t use a Stop Loss?
If the loss becomes too big, your broker may force-close the trade. That’s called a Stop Out — and it happens to protect your account from going into negative balance.

Types of Orders

When placing a trade, you’ll see different order types. Here's what they mean:

Market Order:
The fastest way to trade. Your order is executed immediately at the current market price.
Limit Order:
You set a specific price at which you want to buy or sell. The trade only happens if the market reaches your price.

Example: You want to buy gold if it drops to $1,850. Set a Buy Limit at that level.
Stop Order (often used for Stop Loss or Take Profit):
A conditional order that becomes a market order once the price hits a certain level.

Example: You bought gold at $1,900. To limit risk, you place a Stop Loss at $1,880.

Bid and Ask: What Are They?

Every asset has two prices:

Bid: the price at which you can sell
Ask: the price at which you can buy

The difference between them is called the spread, and it’s one of the broker's costs.