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.
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.
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.
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.
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.
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.
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.
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.
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.
