Leading and lagging economic indicators
Course Units Unit 1 – Overview Unit 2 – Leading Indicators Unit 3 – Leading Examples Unit 4 – Lagging Indicators Unit 5 – Coincident Indicators Unit 1 of 5 SECTION 2 Leading and Lagging Economic Indicators Unit 1 / 5 Regardless of whether you trade currencies, stocks, indices, or other financial instruments, it is essential to build a clear and complete understanding of the situation in the relevant country. This means identifying the key factors that influence the national economy and knowing which types of news deserve the closest attention. Economic releases shown in the economic calendar are generally classified into three main groups. Leading indicators provide signals about potential future economic activity. Coincident indicators reflect the current state of the economy, while lagging indicators confirm trends that have already taken place. Understanding these categories helps traders better interpret market reactions to economic news. Next Unit → SECTION 2 Leading Indicators Unit 2 / 5 Leading indicators are used to anticipate future changes in a country’s economic conditions. Movements in these indicators often signal that similar positive or negative effects are likely to appear across other sectors of the economy. By analysing leading indicators, it is possible to foresee developments such as an upcoming economic slowdown or expansion. Central banks rely on this type of data to determine economic trends in advance and adjust monetary policy accordingly, for example by raising or lowering interest rates. Private traders also use the same information to adapt their trading strategies ahead of broader market changes. ← Previous Next Unit → SECTION 2 Examples of Leading Indicators Unit 3 / 5 Examples of leading indicators include building permits, the Consumer Confidence Index, and initial unemployment claims. An increase in building permits suggests positive prospects for construction and related industries, often signalling future growth in employment and higher demand for home loans. The Consumer Confidence Index reflects how willing people are to spend money over a given period. It provides insight into overall economic conditions, labour market stability, and even future production levels. Initial unemployment benefit claims show how many people have recently become unemployed. Changes in this data can influence broader economic measures such as GDP, tax revenues, and consumer prices. ← Previous Next Unit → SECTION 2 Lagging Indicators Unit 4 / 5 Lagging indicators reflect economic changes that have already taken place over a period of time. Traders use these indicators to confirm the strength and direction of existing market trends. Since they highlight movements that are already underway, they are often applied when planning medium- to long-term trades that align with the broader trend. Examples of lagging indicators include the unemployment rate, which shows the current level of joblessness in a country, and the Consumer Price Index, which tracks how the cost of a typical basket of goods changes over time. Another key lagging indicator is the trade balance, which compares the value of a country’s exports and imports over a specific period. ← Previous Next Unit → SECTION 2 Coincident Indicators Unit 5 / 5 Coincident indicators provide insight into the current state of the economy. They help traders assess existing market conditions and understand how economic activity is unfolding in real time, making it easier to adjust strategies to an emerging or ongoing trend. Examples of coincident indicators include personal income, which measures earnings from all sources, retail sales, which track changes in consumer spending in the retail sector, and Gross Domestic Product, which represents the total value of goods and services produced within a country over a specific period, such as a quarter or a year. ← Previous
What is fundamental analysis?
Course Units Unit 1 – Introduction Unit 2 – Company & Supply Unit 3 – Global Events Unit 4 – Natural Disasters Unit 5 – Military Conflicts Unit 6 – Political Factors Unit 7 – Economic Indicators Unit 8 – Nonfarm Payrolls Unit 9 – Cross-Market Impact Unit 1 of 9 SECTION 1 What is Fundamental Analysis? Unit 1 / 9 Every trader aims to anticipate future price movements. To form a realistic view, it is not enough to simply watch price charts on a trading platform. It is equally important to stay informed about global events and developments, which is where fundamental analysis plays a key role. Major events such as political referendums, statements from government leaders, or the release of weak economic data can have a significant impact on a country’s currency value. These factors often drive sharp and sudden market reactions. You may often hear expressions such as “the pound fell following the news” or “the euro strengthened against the dollar after the announcement.” These types of observations are commonly used by analysts as part of their daily fundamental market commentary and analysis. Next Unit → SECTION 2 Company Results & Supply Factors Unit 2 / 9 When a well-known company reports weaker-than-expected results for a quarter, investor confidence can be shaken. As a result, the company’s shares may become less appealing, leading to increased selling pressure and a decline in the share price. Similarly, a prolonged rainy season in the United States can damage cotton harvests, reducing supply below expected levels and causing prices to rise sharply. These kinds of real-world events and economic factors have a direct influence on financial markets. Understanding and evaluating them is an essential part of trading and is known as fundamental analysis. ← Previous Next Unit → SECTION 3 Global & Geopolitical Events Unit 3 / 9 When applying fundamental analysis, traders should consider a wide range of events that can influence market behavior. These include economic, geopolitical, and social developments, as well as a country’s economic outlook and overall market sentiment. Natural disasters such as extreme weather, earthquakes, or hurricanes can also have a significant impact, particularly when they disrupt production or supply chains. In addition, wars and geopolitical conflicts between major nations, key political events like elections, referendums, or international forums, and the release of important economic data by country or sector all play an important role in shaping price movements. ← Previous Next Unit → SECTION 4 Natural Disasters Unit 4 / 9 Natural disasters refer to extreme events such as floods, earthquakes, hurricanes, and tsunamis. These events often lead to loss of life, widespread damage to infrastructure, and heightened uncertainty, all of which can place significant strain on a country’s economy. Governments are typically required to divert substantial funds toward recovery and reconstruction efforts, increasing financial pressure. As a consequence, the national currency often comes under pressure and weakens. For example, following the devastating earthquake and tsunami in Japan in 2011, which resulted in around 15,000 fatalities along with thousands injured or missing, the Japanese yen fell by approximately 0.4% against the US dollar. ← Previous Next Unit → SECTION 5 Military Conflicts Unit 5 / 9 Military conflicts place heavy pressure on countries involved, as governments must fund military operations, manage losses, support affected populations, and address widespread fear and uncertainty. These factors disrupt economic stability and strain public finances. As a result, prolonged hostilities often lead to heightened market volatility and can cause the national currencies of the countries involved to weaken significantly. ← Previous Next Unit → SECTION 6 Political Factors Unit 6 / 9 Political factors play a major role in influencing financial markets, with presidential elections being one of the most significant events. Elections often lead to increased volatility in a country’s currency, especially when there is a strong possibility of a change in government. In such cases, political uncertainty can put downward pressure on the national currency. Other important political developments include statements made by officials after high-level meetings, unexpected policy decisions, political scandals, international sanctions, diplomatic tensions, and the outcomes of negotiations between national leaders. All of these can have a noticeable impact on market sentiment and exchange rates. ← Previous Next Unit → SECTION 7 Economic Indicators Unit 7 / 9 Economic indicators are a core element of fundamental analysis, and the economic calendar is one of the most important tools used by professional traders. When official data is released, it appears instantly in the calendar along with key details such as the release time, the name and description of the indicator, as well as the previous and forecasted values. Some indicators are considered especially influential and are typically highlighted due to their strong impact on the markets. These include central bank interest rate decisions, Nonfarm Payrolls, unemployment figures, the Consumer Price Index, and Gross Domestic Product data. Such releases often trigger increased market volatility and are closely monitored by traders worldwide. ← Previous Next Unit → SECTION 8 Nonfarm Payrolls (NFP) Unit 8 / 9 To understand how economic data releases influence price movements, consider the example of the US Nonfarm Payrolls report. This monthly indicator measures changes in employment levels outside the agricultural sector and reflects how many jobs were added or lost during the previous month. Stronger-than-expected results are generally viewed as positive for the US dollar, as rising employment suggests higher income levels, increased consumer spending, and a stronger overall economy, making the currency more attractive to investors. On the other hand, when the data comes in below market expectations, it is often seen as a negative signal and can lead to a decline in the value of the US dollar. ← Previous Next Unit → SECTION 9 Impact Across Markets Unit 9 / 9 In most cases, macroeconomic indicators influence more than a single asset at a time. For instance, while the Nonfarm Payrolls report is directly linked to the US economy, it also impacts other currencies such as the British pound
How to start CFD trading?
How to Start CFD Trading Unit 1 – Start CFD Trading Unit 2 – Choose Instrument Unit 3 – Trade Direction Unit 4 – Pending Orders Unit 5 – Trade Size Unit 6 – Stop Loss Unit 7 – Monitor Position Unit 8 – Close Trade Unit 9 – Review Trades Unit 1 of 9 SECTION 9 How to Start CFD Trading? Unit 1 / 9 How to start CFD trading? First, open a trading account and choose the platform that matches your experience, goals, and preferred market access. New traders should begin with a demo account. This allows them to practise placing trades, testing tools, and understanding price movement without risking real money. During registration, choose your leverage level and account base currency carefully. These choices affect risk, margin, and how your account balance appears. For more learning, review our technical analysis guide or read this external guide from Investopedia. Next Unit → SECTION 9 How to Start CFD Trading with the Right Instrument Unit 2 / 9 After setting up the platform, choose the asset or instrument you want to trade. CFDs can cover currencies, commodities, indices, shares, and other markets. Before placing an order, review the instrument specifications. Check trading hours, spread, contract size, margin requirements, and possible costs. This step helps you avoid confusion and makes your trading decision more structured. ← Previous Next Unit → SECTION 9 Choose Trade Direction Unit 3 / 9 Next, decide whether you expect the price to rise or fall. Choose buy if you expect upward movement, and choose sell if you expect downward movement. Your decision should come from a clear strategy. You may use technical analysis, fundamental analysis, indicators, or a combination of tools. Therefore, avoid random entries and make sure every trade has a clear reason. ← Previous Next Unit → SECTION 9 Use Pending Orders Unit 4 / 9 Pending orders allow traders to plan entries before price reaches a selected level. As a result, they do not need to watch the screen all the time. Buy stop and sell stop orders help traders enter when price continues in a direction. In contrast, buy limit and sell limit orders help traders enter after a possible pullback. In addition, traders can attach stop loss and take profit levels to manage risk before the order activates. ← Previous Next Unit → SECTION 9 Decide Trade Size Unit 5 / 9 Trade size controls how much your account can gain or lose from price movement. For that reason, this step is very important. Choose a size that matches your account balance and risk plan. Larger positions can increase profit potential, but they also increase possible losses. Traders usually express size in lots or units. This size affects pip value, margin, and overall exposure. ← Previous Next Unit → SECTION 9 Set Stop Loss and Take Profit Unit 6 / 9 Stop loss and take profit levels help traders manage trades with more discipline. A stop loss limits potential loss, while take profit locks in gains at a planned level. You can set these levels when opening a trade. You can also add or adjust them later through the platform. However, stop loss orders use market execution. Therefore, fast market movement may cause execution at a different price. ← Previous Next Unit → SECTION 9 Monitor Open Positions Unit 7 / 9 After opening a position, monitor the trade through desktop, web, or mobile platforms. This helps you follow unrealised profit or loss in real time. Buy positions react to bid price movement. Meanwhile, sell positions react to ask price movement. Most importantly, follow your plan and avoid emotional changes during fast market movement. ← Previous Next Unit → SECTION 9 Close the Position Unit 8 / 9 Closing the position completes the trade. Traders can close manually, or the platform can close the trade through stop loss, take profit, stop out, or contract expiry. Once the platform closes the trade, the result appears in the account balance. Therefore, profit or loss becomes realised. A clear exit plan helps traders avoid holding positions for emotional reasons. ← Previous Next Unit → SECTION 9 How to Start CFD Trading Review Unit 9 / 9 Reviewing closed trades helps traders improve. The account history section shows position size, direction, entry price, exit price, profit or loss, and charges. Each trade receives a unique order number. In addition, traders can generate statements to review account activity. How to start CFD trading becomes easier when traders follow a structured process: open an account, choose an instrument, plan risk, place the order, monitor the trade, and review the result. ← Previous
What is a CFD?
CFD Trading Unit 1 – What is a CFD Unit 2 – CFD Advantages Unit 3 – Long & Short Unit 4 – Stop Loss & Take Profit Unit 5 – Stop Pending Orders Unit 6 – Limit Pending Orders Unit 7 – CFD Trading Summary Unit 1 of 7 SECTION 8 What Is a CFD? Unit 1 / 7 A CFD, or contract for difference, is an agreement that allows traders to profit from price movements without owning the underlying asset. The contract reflects the difference in value of an asset between the time a position is opened and when it is closed. If the price moves in your favour, you receive the difference; if it moves against you, you pay the difference. Trading CFDs means you are speculating on price movement rather than buying or selling the asset itself. Next Unit → SECTION 8 Advantages of CFD Trading Unit 2 / 7 CFDs provide access to a wide range of instruments from a single trading platform and allow traders to use flexible risk management tools. Leverage enables traders with smaller capital to participate in markets, while the ability to trade long or short allows profit in both rising and falling markets. CFDs also allow hedging by opening opposing positions on the same asset. ← Previous Next Unit → SECTION 8 Long and Short Positions Unit 3 / 7 A long position refers to buying an asset in expectation that its price will rise, while a short position involves selling an asset in anticipation that its price will fall. If the market moves against the position taken, the trade will result in a loss. Traders often describe their market view as being long or short on an asset. ← Previous Next Unit → SECTION 8 Stop Loss and Take Profit Unit 4 / 7 Stop loss and take profit are instructions that automatically close a trade at predefined price levels. Stop losses limit risk, while take profits secure gains. These orders can be added when opening or modifying a trade. Stop orders use market execution and may not be filled at the exact specified price due to volatility. ← Previous Next Unit → SECTION 8 Stop Pending Orders Unit 5 / 7 Stop pending orders open a trade automatically once the market reaches a specified level, expecting price continuation. Buy stop orders are placed above the market price, while sell stop orders are placed below. All stop pending orders are executed using market execution. ← Previous Next Unit → SECTION 8 Limit Pending Orders Unit 6 / 7 Limit pending orders are used when a trader expects a price reversal at a specific level. Buy limits are placed below market price, while sell limits are placed above it. Limit orders are executed using limit execution at the requested price or better. ← Previous Next Unit → SECTION 8 CFD Trading Summary Unit 7 / 7 CFD trading allows speculation on price movements without owning the asset. Traders can go long or short, use stop loss and take profit orders, and plan trades in advance using pending orders. ← Previous
What is margin?
Margin Unit 1 – What is Margin Unit 2 – Margin & Leverage Unit 3 – Margin for Other Assets Unit 4 – Free Margin Unit 5 – Equity Unit 6 – Margin Level Unit 7 – Stop Out Unit 8 – Summary Unit 1 of 8 SECTION 7 What Is Margin? Unit 1 / 8 Margin, also referred to as used margin, is the amount of funds set aside to maintain open positions. When a trade is opened, this margin is reserved and remains locked until the position is closed. Margin depends on the instrument, position size, and leverage level applied. Margin is calculated by dividing trade size by leverage, then converting using the exchange rate. Next Unit → SECTION 7 Margin and Leverage Unit 2 / 8 Higher leverage reduces margin requirements, while lower leverage requires more capital. With leverage of 1:30, the margin required for a €100,000 trade is €3,333.33. Converted to USD at EUR/USD 1.11413, margin equals $3,713.77. ← Previous Next Unit → SECTION 7 Margin for Other Asset Classes Unit 3 / 8 Margin for other assets depends on fixed leverage limits and market price. One lot of gold (100 oz) at $1,511.73 with 1:20 leverage requires $7,558.65 margin. ← Previous Next Unit → SECTION 7 Free Margin Unit 4 / 8 Free margin is the amount of funds available for new trades or withdrawal. It is calculated as equity minus used margin. ← Previous Next Unit → SECTION 7 Equity Unit 5 / 8 Equity is your account balance plus or minus unrealised profit or loss. Equity fluctuates while positions are open and equals balance when no trades exist. ← Previous Next Unit → SECTION 7 Margin Level Unit 6 / 8 Margin level is equity divided by used margin, expressed as a percentage. At 100% margin level, no new trades can be opened. ← Previous Next Unit → SECTION 7 Stop Out Unit 7 / 8 A stop out occurs when equity falls below a predefined percentage of used margin. If stop out is 50% and margin is €1,000, positions close at €500 equity. ← Previous Next Unit → SECTION 7 Margin Summary Unit 8 / 8 Margin, free margin, equity, margin level, and stop out are core concepts every trader must understand. ← Previous
Lots & Leverage
Lots & Leverage Unit 1 – Lots Unit 2 – What is Leverage Unit 3 – How Leverage Works Unit 4 – Leverage Example (Profit) Unit 5 – Leverage Example (Loss) Unit 6 – Leverage & Costs Unit 7 – Summary Unit 1 of 7 SECTION 6 Lots in Trading Unit 1 / 7 A lot is the standard unit used to measure trade volume in financial markets. In Forex, one standard lot represents 100,000 units of the base currency in a pair. For example, trading one lot of EUR/USD means dealing with 100,000 euros, while one lot of USD/JPY equals 100,000 US dollars. Online trading platforms also allow traders to use smaller position sizes. A standard lot equals 100,000 units, a mini lot represents 10,000 units, and a micro lot represents 1,000 units. For other asset classes, a lot refers to a fixed contract size specific to that instrument. For example, one lot of gold typically equals 100 ounces. The chosen lot size directly affects pip or tick value and therefore potential profit and loss. Next Unit → SECTION 6 Understanding Leverage Unit 2 / 7 Leverage increases a trader’s purchasing power by allowing them to control a position that is larger than their actual capital. This can amplify potential returns, even though the initial investment is relatively small. However, leverage must be used with caution. If applied improperly, it can lead to rapid losses and even the loss of all available equity. For this reason, leverage is considered a double-edged tool and should be used carefully. ← Previous Next Unit → SECTION 6 How Leverage Works Unit 3 / 7 Leverage is often described as using borrowed money, but this is not entirely accurate. Brokers do not add funds to your account. Instead, leverage reduces the amount of capital required to open a position by a certain ratio. For example, opening one lot of EUR/USD with no leverage requires €100,000. With leverage of 1:10, only €10,000 is required. Higher leverage reduces the required capital even further. ← Previous Next Unit → SECTION 6 Leverage Example – Profit Unit 4 / 7 In the first scenario, you start with €1,000 and apply leverage of 1:100, allowing you to open a position worth €100,000. If you sell EUR/USD and the price moves in your favour by 100 pips, the resulting profit would be approximately $1,000. ← Previous Next Unit → SECTION 6 Leverage Example – Loss Unit 5 / 7 In the second scenario, you again start with €1,000 and open a €100,000 position. If the market moves against you by 100 pips, your entire €1,000 deposit could be wiped out. This highlights how quickly losses can occur when using high leverage in volatile markets. ← Previous Next Unit → SECTION 6 Leverage and Trading Costs Unit 6 / 7 Leverage increases not only potential profits and losses, but also the impact of trading costs. A trader with $1,000 using no leverage may pay $1 in spread, while using 1:10 leverage increases the cost to $10. The same principle applies to commissions, rollover charges, and other trading fees. ← Previous Next Unit → SECTION 6 Lots & Leverage Summary Unit 7 / 7 Lots define trade size, while leverage increases buying power. One standard Forex lot equals 100,000 units of the base currency. Higher leverage increases risk, which is why it should always be used carefully and with a clear understanding of its impact. ← Previous
Price changing. Pips and Points
Price Changing Unit 1 – Pips and Points Unit 2 – Forex Points Unit 3 – Pip Value Unit 4 – Lot Size Unit 5 – Ticks Unit 6 – Summary Unit 1 of 6 SECTION 5 Price Changing. Pips and Points Unit 1 / 6 Price changing. Pips and Points explains how traders measure small movements in Forex prices. A pip means “percentage in point” and represents the standard unit for tracking movement in most currency pairs. For most pairs, one pip appears at the fourth decimal place. For example, if EUR/USD moves from 1.1342 to 1.1343, the price has moved by one pip. However, Japanese yen pairs work differently. In JPY pairs, traders usually measure one pip at the second decimal place. For more learning, review our CFD trading guide or read this external guide from Investopedia. Next Unit → SECTION 5 Price Changing. Pips and Points in Forex Unit 2 / 6 A point represents a fraction of a pip. Many brokers quote currency pairs with one extra digit after the pip to show more precise pricing. Ten points usually equal one pip. Therefore, a spread of 1.4 pips equals 14 points. This wording mainly applies to Forex trading. In indices, traders may use terms such as index points or base points instead. ← Previous Next Unit → SECTION 5 Pip Value and Trade Size Unit 3 / 6 Pip value shows how much money a one-pip movement is worth. The value depends on the currency pair and the size of the position. Traders calculate profit or loss by multiplying the number of pips moved by the pip value. As a result, position size becomes an important part of risk management. To estimate pip value in Forex, multiply the pip size by the trade size. Then, adjust the result based on the account currency when needed. ← Previous Next Unit → SECTION 5 Pips and Lot Sizes Unit 4 / 6 Lot size affects the value of each pip. A larger lot size increases potential profit, but it also increases possible loss. For most currency pairs, one pip equals 0.0001. A standard lot of 100,000 units usually gives a pip value of 10 units of the quote currency. For Japanese yen pairs, one pip equals 0.01. Therefore, traders must calculate JPY pairs differently from most other Forex pairs. A micro lot, mini lot, and standard lot all create different pip values. Because of this, traders should choose lot size carefully before opening a position. ← Previous Next Unit → SECTION 5 Ticks in Price Movement Unit 5 / 6 A tick means a single change in price. In Forex, one tick can include one point or several points, depending on how the quote changes. For example, if EUR/USD moves from 1.10564 to 1.10567, traders may call it one tick, even though the price increased by three points. In futures and commodities markets, a tick often represents the smallest possible price movement. Therefore, traders use it to calculate profit and loss in those markets. ← Previous Next Unit → SECTION 5 Price Changing. Pips and Points Summary Unit 6 / 6 Pips, points, and ticks help traders describe price movement clearly. In Forex, a pip usually refers to the fourth decimal place, or the second decimal place for JPY pairs. Points give more precision because they divide a pip into smaller parts. Meanwhile, ticks describe individual price changes. Price changing. Pips and Points helps traders calculate spreads, movement, profit, loss, and risk before making trading decisions. ← Previous
Chart types
Chart Types Unit 1 – Introduction Unit 2 – Line Charts Unit 3 – Bar Charts Unit 4 – Bar Structure Unit 5 – Candlesticks Unit 6 – Candle Anatomy Unit 7 – Summary Unit 1 of 7 SECTION 4 Chart Types Unit 1 / 7 Chart types help traders display price movement in different visual formats. The most common types are line charts, bar charts, and Japanese candlestick charts. First, traders use charts to understand how the price changes over time. Then, they compare different formats to choose the one that gives the clearest view of the market. On CG Invest trading platforms, charts use bid prices. However, traders can still view the ask price as a separate horizontal line beside the price action. For deeper learning, review our technical analysis guide or read more from Investopedia. Next Unit → SECTION 4 Line Chart Types Unit 2 / 7 A line chart is the simplest format. It shows only the closing price for each selected time period, such as one minute, one hour, or one day. Because it connects closing prices with a continuous line, it gives traders a clean view of the general price direction. However, this format does not show the open, high, and low prices. Therefore, traders usually use it for a quick overview rather than detailed analysis. ← Previous Next Unit → SECTION 4 Bar Chart Types Unit 3 / 7 A bar chart gives traders more detail than a line chart. It shows the opening price, closing price, highest price, and lowest price for each period. Traders often call this information O-H-L-C, which means Open, High, Low, and Close. As a result, they can understand both direction and price range. This chart format works well for traders who want more information without using candlesticks. ← Previous Next Unit → SECTION 4 Bar Chart Structure Unit 4 / 7 A bar contains one vertical line and two small horizontal markers. The left marker shows the opening price, while the right marker shows the closing price. The top of the vertical line shows the highest price during the period. Meanwhile, the bottom shows the lowest price. Although bar charts provide useful information, many beginners find them harder to read than candlestick charts. ← Previous Next Unit → SECTION 4 Candlestick Chart Types Unit 5 / 7 Japanese candlestick charts are among the most popular formats in trading. They show the same O-H-L-C data, but they present it in a clearer visual style. Each candle helps traders understand whether buyers or sellers controlled the selected period. Therefore, candlesticks make price action easier to read. Today, many traders prefer candlesticks because they combine detail, clarity, and visual speed. ← Previous Next Unit → SECTION 4 Candlestick Anatomy Unit 6 / 7 Each candlestick has a body and wicks. The body shows the distance between the opening price and the closing price. The upper wick shows the highest price reached during the period. In contrast, the lower wick shows the lowest price reached. Because of this structure, traders can quickly understand strength, weakness, and possible market reaction. ← Previous Next Unit → SECTION 4 Chart Types Summary Unit 7 / 7 In summary, line charts show closing prices only, bar charts show full O-H-L-C data, and candlestick charts present the same information in a visual way. Therefore, each format has a different purpose. Beginners may start with line charts, while active traders often prefer candlesticks. Overall, understanding chart types helps traders read market movement more clearly and choose the right format for their analysis. ← Previous
How to trade on the CG Invest
Course Units Unit 1 – CG Invest Unit 2 – Market Mechanics Unit 3 – Currency Pairs Unit 4 – Major Pairs Unit 5 – Base & Quote Unit 6 – Opening & Closing Unit 7 – Bid & Ask Unit 8 – Spread Unit 9 – Summary Unit 1 of 9 SECTION 3 How to Trade on the CG Invest? Unit 1 / 9 How to trade on the CG Invest? First, you need to understand how financial markets work and how prices move on an online trading platform. Financial markets include equities, metals, bonds, futures, currencies, and other asset classes. Among these markets, Forex is one of the most active and liquid. In this lesson, you will learn how trading works in practice. You will also understand currency pairs, Bid and Ask prices, spreads, and the basic steps for opening and closing trades. For more learning, review our technical analysis guide or read this external guide from Investopedia. Next Unit → SECTION 3 How Trading Works on CG Invest Unit 2 / 9 Forex prices move 24 hours a day, five days a week. Therefore, traders can follow market movement across major global sessions. Currency values often react to economic news, interest rates, political events, and market expectations. Positive news can support a currency, while negative news can weaken it. Traders make profit or loss when they close a position. Because of this, every trade needs a clear plan before entry. ← Previous Next Unit → SECTION 3 CG Invest Currency Pairs Unit 3 / 9 Currency pairs show the value of one currency compared with another. For example, EUR/USD shows how many US dollars equal one euro. When traders buy a pair, they buy the first currency and sell the second. However, when they sell a pair, they sell the first currency and buy the second. This process is similar to exchanging money at a bank. However, online trading allows traders to act faster and manage positions directly from the platform. ← Previous Next Unit → SECTION 3 Major, Minor and Exotic Pairs Unit 4 / 9 Major currency pairs include currencies from the world’s largest economies. They usually offer high liquidity and active price movement. Examples include EUR/USD, GBP/USD, USD/JPY, and USD/CAD. These pairs attract many traders because they often have tighter spreads. Minor and exotic pairs may offer opportunities too. However, they can also have wider spreads and stronger price swings. ← Previous Next Unit → SECTION 3 Base and Quote Currency Unit 5 / 9 Every currency pair has a base currency and a quote currency. The first currency is the base, while the second currency is the quote. If EUR/USD is quoted at 1.07407, one euro equals 1.07407 US dollars. Therefore, traders read the pair as the price of the base currency in quote currency terms. Buy and sell decisions always relate to the base currency. As a result, buying EUR/USD means expecting the euro to rise against the US dollar. ← Previous Next Unit → SECTION 3 Opening and Closing Trades Unit 6 / 9 On a CFD platform, selecting “Buy” opens a long position. In contrast, selecting “Sell” opens a short position. Traders close positions when they want to realize profit or control loss. Therefore, closing the trade is as important as opening it. Before entering a trade, traders should define the position size, stop loss, target area, and risk level. ← Previous Next Unit → SECTION 3 Bid and Ask Prices Unit 7 / 9 Bid and Ask are the two prices shown for each trading instrument. The Bid is the selling price, while the Ask is the buying price. Buy trades open at the Ask price and close at the Bid price. Meanwhile, sell trades open at the Bid price and close at the Ask price. Because these two prices differ, traders should understand them before placing any order. ← Previous Next Unit → SECTION 3 Understanding the Spread Unit 8 / 9 The spread is the difference between the Bid price and the Ask price. It represents a basic trading cost. Traders often measure spreads in pips. Narrower spreads usually help traders reduce costs, especially when they trade frequently. For example, currency exchange offices also use different prices for buying and selling. Online trading platforms use a similar idea. ← Previous Next Unit → SECTION 3 CG Invest Trading Summary Unit 9 / 9 To trade on CG Invest, traders should understand how markets move, how currency pairs work, and how orders open and close. In addition, traders should understand Bid and Ask prices because they affect every trade. The spread also matters because it represents part of the trading cost. Overall, a clear trading process helps traders make better decisions, manage risk, and avoid random entries. ← Previous
Trading Sessions
Course Units Unit 1 – Trading Sessions Unit 2 – Market Open Unit 3 – Asian Session Unit 4 – European Session Unit 5 – New York Session Unit 6 – Summary Unit 1 of 6 SECTION 1 Global Trading Sessions Unit 1 / 6 A trading day in the financial markets is structured around global trading sessions, each aligned with the operating hours of major financial centers worldwide. The trading day typically begins with the Pacific session, followed by the Asian session, then moves to the London session and later the American session. When sessions overlap, market activity usually increases, resulting in higher volatility and faster price movements due to increased participation. Next Unit → SECTION 2 Market Open & Weekend Gaps Unit 2 / 6 When the Sydney stock exchange opens at the start of the week, it is early morning in Tokyo, Sunday evening in London, and Sunday afternoon in New York. Prices often react to developments that occurred over the weekend, making early market behavior unpredictable and difficult to forecast. For this reason, holding positions over the weekend is generally discouraged, as price gaps may cause unexpected stop outs when markets reopen. ← Previous Next Unit → SECTION 3 Asian Trading Session Unit 3 / 6 During the Asian trading session, the first major economic data of the day is released, with a strong focus on Japan and activity on the Tokyo exchange. The most noticeable movements are often seen in currency pairs involving the Japanese yen, such as USD/JPY, EUR/JPY, and AUD/JPY. Other financial centers active during this session include Sydney, Singapore, and New Zealand. ← Previous Next Unit → SECTION 4 European (London) Session Unit 4 / 6 The London exchange drives the European trading session and is one of the most influential market periods. Its opening overlaps with the end of the Asian session and its closing aligns with the start of New York. Major European exchanges such as Frankfurt and Paris operate during similar hours, extending market activity. Key economic data released during this session can strongly affect pairs such as EUR/USD, GBP/USD, USD/CHF, EUR/GBP, and EUR/CHF. ← Previous Next Unit → SECTION 5 New York Session & Volatility Unit 5 / 6 The New York trading session overlaps with the later part of the London session, creating one of the most active periods in the market. High trading volume and sharp price movements are common, especially in instruments linked to the US dollar. During this time, economic data from the United States can rapidly influence stocks, gold, oil, and USD-related currency pairs. ← Previous Next Unit → SECTION 6 Summary & Key Takeaways Unit 6 / 6 Financial markets operate through global trading sessions that span Asia, Europe, and North America, creating nearly continuous market activity. The trading week begins in Sydney and moves through Tokyo, London, and New York. Overlapping sessions tend to experience higher volatility due to increased participation and major news releases. When markets reopen after the weekend, price gaps may occur, making risk management an essential part of any trading strategy. ← Previous