Trading basics

What trading instruments does Born2trade offer?‍

We provide trading CFDs on forex, metals, commodities, indices, stocks, and cryptocurrencies.

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What are Long (Buy) and Short (Sell) positions?

• Long (Buy) position: When you go long, you are buying an instrument with the expectation that its price will rise. You profit if the market goes up and lose if it goes down.
  
• Short (Sell) position: When you go short, you are selling an instrument you don’t own with the expectation that its price will fall. You profit if the market goes down and lose if it goes up.
  

📌 Example:

• Going long EUR/USD at 1.1000 and closing at 1.1050 gives you a profit (the price rose).
  
• Going short EUR/USD at 1.1000 and closing at 1.0950 also gives you a profit (the price fell).
  

This flexibility allows traders to benefit in both rising and falling markets.

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What are the Ask price and Bid price?

‍The Bid price is what buyers are willing to pay, while the Ask price is what sellers are willing to accept.

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What is a locked position in trading?
A locked (hedged) position occurs when you open both buy and sell trades on the same instrument simultaneously.

If a hedged position is opened, the margin level is calculated from the highest margin. If two opposite positions are open on the hedge account, the margin for the combined position will be calculated on the basis of the larger position.

For example:

You Buy 2 lots of EURUSD and Sell 1 lot of EURUSD. The margin for the combined position will be calculated on the basis of 2 lots of EURUSD.

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What is the difference between pips and points/pipettes?
A pip is the standard unit of price movement, usually the fourth decimal place. A pipette, also known as a point, is one-tenth of a pip (the fifth decimal place).

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What is a market gap?
A market gap occurs when prices jump between two levels without trading in between, often after major news events or when the market opens.