Quick Guides from the DF Markets Team

Basics
  • What is Forex?
  • What is a Contract for Difference (CFD)?
  • What is Margin (or Leverage)?
  • Long and short positions
FAQs
  • What are the CFD trading costs?
  • What can I trade with DF Markets?
  • What is Hedging in Forex and CFD trading?
  • What is Margin call?
DF Mobile
  • Quotes Window
  • Placing Orders
  • Positions: Stop and Limit to a Position
  • Reviewing Orders
  • Charts
  • Trading Resources

Discover Dozens of Quick Guides

What is a Contract for Difference (CFD)?

A Contract for Difference (CFD) is an agreement between two parties to exchange the difference between the current value of an asset and its value at the buy/sell time.

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How are CFD traded?

CFD trading is an easy and convenient way to trade on the international markets. It is also a flexible alternative to other types of trading, giving you access to multiple markets from a single account.

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Long and short positions

CFD trading allows you to profit from both rising and falling markets. You buy (open a long position) if you think prices will rise, or sell (open a short position) if you think prices will fall.

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What is Margin (or Leverage)?

One of the advantages of Forex and CFD trading is that you can trade sums much larger than your account equity.

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What is Hedging in Forex and CFD trading?

Hedging can be described as insuring your investment against a possible negative event in the future. It doesn’t prevent the event from occurring, but rather aims to reduce its negative impact by reducing your exposure to risk.

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CFD trading costs?

A major advantage of CFD trading is the lower trading costs, as opposed to traditional share trading. Not only are CFDs traded on margin, thus requiring a fraction of the full cost to open a position, but also the minimum amount to place a trade is one CFD.

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Rollover and Interest in CFD trading?

Trading CFDs on margin involves another typical cost: paying interest when you leave your position open at the end of the trading day (also known as a rollover fee).

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Dividends in CFD trading

Although you are not actually purchasing the actual shares, indices or ETFs, when the issuer company (or the ETF in which a company is included) announces payment of dividends, this will be reflected in your account as a dividend payment.

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CFDs on 100% margin: Cash CFDs

DF Markets also offers CFDs traded on 100% margin, also called “Cash CFDs”. By opening a Cash CFD position, you pay the full cost of the underlying asset (without borrowing money from your broker), so no interest is charged for such positions.

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What is Forex?

The foreign exchange market, also known as the Forex, or FX market, is by far the largest financial market in the world.

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What is traded on the Forex market?

The answer is money. It is exchanged among large central banks and organisations, investment companies and individual traders.

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How is Forex traded ?

Forex exchange traders would typically look at the currencies available and buy the strongest one while selling the weakest.

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What are Lots in Forex trading ?

A lot is the standardised quantity of a financial instrument. It usually represents the minimum order size.

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What is a Pip in Forex trading ?

Stock indices have "points", however Forex currency pairs have pips, and are usually quoted to the fourth digit after the decimal point.

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A brief history of currency trading

The introduction of the gold standard monetary system in 1875 is probably the most significant event in the history of the currency markets.

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What can I trade with DF Markets?

DF Markets offers trading in over 1,000 CFD markets: 77 currency pairs, Gold and Silver, Shares, Indices, ETFs; Energy, Commodity and Financial Futures

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What trading platform does DF Markets offer?

DFTrader is a state-of- the-art trading platform available in desktop, web and mobile versions. It allows you to trade Forex, Precious Metals,

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What order types can I place on the DFTrader platform?

You can place Market, Limit, Stop (incl. Trailing Stop) and OCO (One Cancels the Other) orders, which are sent for execution at price levels

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What is the minimum contract size at DF Markets?

The minimum currency contract size is 1 lot, i.e. 1,000 units of the base currency, and for Gold and Silver it is 1 troy ounce. Information about all CFDs on various futures

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Margin call or why your positions may beclosed due to insufficient margin ?

Failure to maintain the minimum margin requirements for your open positions will lead to the automatic closing of some or all of them.

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Fundamental Analysis

Fundamental analysis of the market involves analysing economic, social, political and other factors that affect the value of financial assets such as currencies, company shares, stock indices etc.

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Technical Analysis

Technical analysis looks at historical price charts of currency pairs or financial assets and the trends that occur within these charts.

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Line charts?

A line chart simply plots the closing points at selected intervals with a line draw to connect the points.

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Candlestick charts ?

A candlestick chart is made up of separate blocks, or candles. Each block (the body of the candle) represents a time interval, e.g. 5 minutes, 1 hour, 1 day, 1 year, etc.

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Trading CFDs & FX on leverage can result in losses that exceed your deposits. Ensure you understand the risks!