Welcome to
the Online Trading Academy!

Our Academy serves as a valuable resource, offering personalized one-to-one or group sessions tailored for both beginners and experienced traders alike. Dive into our six comprehensive online trading modules designed to boost your trading confidence.

An Introduction to The Markets

So, you aspire to be a trader, but you find yourself wondering what to trade, how to trade, or where to trade? Look no further; this is the ideal starting point.

By the conclusion of our trading academy, you will be well-informed, enlightened, and empowered to commence real trading.

Let’s get straight to the point: to navigate the financial markets successfully, you need a fundamental understanding of what they entail.

If you’re feeling confused or uncertain, don’t fret; you may know more than you realize. The financial markets go by various names—stock market, capital markets, or simply “the markets.” At its core, these markets are where buyers and sellers engage in the trading of assets.

The financial landscape comprises different market types, participants, products, and even various investor profiles. To gain a comprehensive understanding of the markets, it’s crucial to familiarize yourself with all the players involved.


These markets encompass different types, participants, products, and even various investor profiles. To fully comprehend the markets, it’s essential to understand all the players involved.

Now that you have a basic understanding of what the financial markets are, let’s explore the institutions and corporations that shape them.


Here is a list of the main market participants:

Commercial Banks – encompassing both Retail and Investment Banks.

Brokers – including Electronic and Voice Brokers.

Institutional Investors – comprising Corporate and Investment Institutions, such as Pension Funds and Hedge Funds.

Central Banks – examples include the BoE (Bank of England).

Next, let’s move on to what is actually traded on the financial markets. There are essentially two different methods of Trading:


The first is Exchange Based Trading: Trading which is conducted on a centralized, highly regulated exchange.




NYSE – New York Stock Exchange

NYMEX-COMEX – New York Mercantile Exchange – Commodity Exchange

CME – Chicago Mercantile Exchange

CBOT – Chicago Board of Trade

LSE – London Stock Exchange

LME – London Metal Exchange

IPE – International Petroleum Exchange


The second is Over the Counter trading (OTC): A security traded off an exchange, usually directly between banks through a dealer network.


Example: The Inter Bank Currency Market, The Derivatives & Bond Markets.

What kind of trader are you? Various trading styles typically categorize a trader into one of the two below:


Hedger: A person whose primary motivation is not seeking profits but rather reducing the risk of adverse price movements in a security.

Speculator: A person seeking substantial profits in return for taking significant risks by attempting to anticipate price movements, with the hope of making quick, substantial gains.

What is CFD Trading?

CFDs are frequently traded using leverage (we’ll cover this concept later) to provide traders with increased trading power, flexibility, and opportunities. For now, let’s simplify with the following example:

The Agreement:

Person A believes Gold is going to rise from $1175 per oz.

Person B believes Gold is going to fall from $1175 per oz.

Therefore, the two clients entered into an agreement to settle the difference from $1175.

The Outcome:

Person A buys 1 oz of Gold for $1175.

Person B sells 1 oz of Gold for $1175.

After 3 days, Gold is trading at $1180, showing Person A a profit of $5 on his oz and Person B a loss of $5.

Person A closes the position at $1180 and makes $5.

Person B closes the position at $1180 and incurs a loss of $5.

The simplicity of this example highlights that CFDs are not significantly different from trading traditional shares:

If you buy 500 shares of a company at £5, then you have £2500 of stock.

If you buy 500 shares with a CFD at £5, then you also have £2500.

If the share price rises by 10%, you’ve made £250 from your share trade, and if the share price rises by 10% in your CFD trade, you’ve made £250 as well.

Now, you might be wondering, if the value, profit, loss, and risk are the same, why trade CFDs? Explore the “Advantages of CFD Trading” below to find out.

CFD (Contract for Difference) trading offers several advantages that make it an appealing option for many traders. Here are some key advantages:

Leverage: Control larger positions with less capital, potentially leading to higher profits (manage leverage carefully).

Short Selling: Profit from both rising and falling markets by selling CFDs without owning the underlying asset.

Diverse Asset Classes: Access a variety of markets, including stocks, indices, commodities, currencies, and cryptocurrencies.

No Ownership of Underlying Assets: Simplify trading without the need for ownership responsibilities.

Global Market Access: Trade worldwide without multiple accounts, exploring diverse economic conditions.

Hedging: Use CFDs to hedge existing investment positions for risk management.

Lower Costs: Enjoy lower transaction costs, with no stamp duty or commissions and typically lower spreads.

Flexibility in Position Sizing: Adapt position sizes to accommodate various risk appetites.

Access to Dividends and Corporate Actions: Depending on the provider, traders may receive dividends and participate in corporate actions.

While CFDs offer these advantages, it’s crucial to understand associated risks and implement proper risk management strategies. Stay informed about market conditions and regulations for a well-rounded approach to CFD trading.

While CFD (Contract for Difference) trading has its advantages, it’s important to be aware of potential pitfalls associated with this form of trading:

Leverage Risks: Amplifies both profits and losses, requiring cautious use.

Market Volatility: Rapid and unpredictable price fluctuations can lead to significant losses.

Overnight Financing Costs: Holding positions overnight may incur additional costs impacting overall profitability.

Counterparty Risk: Exposure to the financial stability of the CFD provider.

Limited Regulatory Oversight: Less regulatory scrutiny may expose traders to fraud or manipulation risks.

Complex Fee Structure: Various fees, including spreads and financing costs, can be complex and impact returns.

Emotional Decision-Making: High volatility may lead to impulsive and irrational decision-making.

No Ownership of Assets: Traders don’t own the underlying assets, missing out on dividends and voting rights.

Limited Risk Disclosure: Some providers may not adequately disclose risks associated with trades.

Highly Speculative Nature: Success relies on accurate market predictions, making it inherently speculative.

Traders should educate themselves, understand provider terms, and implement robust risk management to mitigate these potential pitfalls.

What is FOREX?

FOREX is the world’s largest financial market, boasting both size and liquidity. To illustrate its magnitude, an average of $5 trillion is traded globally each day. No other stock market worldwide handles such a substantial daily volume.

The concept of FOREX is straightforward; it involves the exchange of one country’s currency for that of another. In FX, you essentially buy one currency and sell another, leading to the trading of currency pairs such as the pound and the US Dollar [GBP/USD]. Some pairs, like Euro vs. US Dollar [EUR/USD], British Pound vs. US Dollar [GBP/USD], US Dollar vs. Japanese yen [USD/JPY], and US Dollar vs. Swiss Franc [USD/CHF], are particularly popular and collectively referred to as “the Majors.”

Throughout the day, a financial center is always open somewhere in the world. The FX market operates 24 hours a day, only closing on weekends between 22:00 (GMT) on Friday and 22:00 (GMT) on Sunday.

The Foreign Exchange market is decentralized, lacking a specific physical location. These decentralized markets, known as OTC [Over-the-Counter] markets, process all trades electronically 24 hours a day between global banks. Unlike other financial markets, Forex does not have a centralized exchange, enabling trading from virtually anywhere in the world at any time. However, there are peak trading sessions in each region. A general outline is provided below:

We mentioned earlier that currencies are always traded in pairs because when you buy one, you’re essentially selling the other and vice versa. So, how do you read an FX quote?

For example:

EUR/USD = 1.1200

This means that 1 Euro (EUR) is equivalent to 1.12 US Dollars (USD).

In this quote, EUR is the base currency, and USD is the counter or quote currency.

This type of quote is also known as a direct quote, where the US Dollar is the counter or quote currency.

Another example:

USD/JPY = 125.00

This means that 1 US Dollar (USD) is equivalent to 125 Japanese Yen (JPY).

In this quote, USD is the base currency, and JPY is the counter or quote currency.

This type of quote is also referred to as an indirect quote, where the US Dollar is the base currency.

All forex quotes comprise two prices: a bid price and an ask price.

Bid Price: If you want to sell the base currency, you will click on the bid price. This is the price at which the other party is willing to buy the base currency from you in exchange for the quote currency.

Ask Price: If you want to buy the base currency, you will click on the asking price. This is the price at which the other party is willing to sell the base currency to you in exchange for the quote currency.

The bid price is always lower than the ask price, and the difference between the two is known as the spread. The spread represents the cost to the client and the revenue for the Market Maker, as it is the difference in price between buying and selling the base currency.

Going long or going short is simply trader jargon for buying or selling.

As long as you remember LONG = BUY and SHORT = SELL, you’re halfway there.

Understanding when to go long or short in FX involves predicting the market direction: 

“Going Long” in FX means buying the base currency and selling the quote currency. This is done when you anticipate the base currency will rise in value. For instance, if EUR/USD = 1.1200, and you believe EUR will rise, you “go long,” buying EUR at 1.1200, hoping to sell it later at a higher price, say, 1.1400.

“Going Short” in FX means selling the base currency and buying the quote currency. This is done when you expect the base currency to fall in value. Using the same example (EUR/USD = 1.1200), if you predict the EUR will decline, you “go short,” selling EUR at 1.1200, aiming to buy it back at a lower price, like 1.1000.

In both scenarios, the goal is to profit from currency price movements – going long when anticipating an increase and going short when expecting a decrease in value.

Understanding Standard Lots and Micro Lots is crucial in Forex trading. Let’s break down the concepts and differences

What is a Forex Lot?

A standard forex lot is equal to 100,000 of the base currency. For example, in EUR/USD, one standard lot is EUR 100,000. A pip movement, quoted to 4 decimal places, is $10. So, if you are down 10 pips on a standard EUR/USD contract, you have lost $100.

Pip Movements (e.g., EUR/USD @ 1.28205):

5th Decimal Place (Micro pip movement) = $1.00 P&L

4th Decimal Place (1 pip movement) = $10.00 P&L

3rd Decimal Place (10 pip movement) = $100.00 P&L

2nd Decimal Place (100 pip movement (Big Figure)) = $1,000.00 P&L

1st Decimal Place (1,000 pip movement) = $10,000.00 P&L

In USD/JPY, where a pip is equivalent to Y1,000, if you are up 10 pips on a standard USD/JPY contract, you have made Y10,000.

Micro Lots:

For beginners, micro lots are suitable for getting acquainted with Forex trading. A micro lot is equal to 1,000 of the base currency you want to trade. In micro lots, 1 pip is worth 0.10 (4 decimals) or 10 (2 decimals) of the counter currency.

So, to sum it up, if you’re starting small, micro lots are an excellent starting point. Unlike standard lots, which are for larger institutional accounts, micro lots allow beginners to engage in Forex trading with smaller sums. It’s essential to start small and gradual progress in Forex trading.

Now that we understand what a pip is, we realize it represents a small amount. To truly make a difference, you need to trade in larger volumes. This is where leveraging comes in – it allows you to magnify your profit potential, albeit with the risk of greater losses, by controlling a relatively large asset for a fraction of its cost.

For example, a 0.25% margin deposit translates to trading with 400 times leverage. Consider buying 1 lot of GBP/USD @ 1.2900 with a margin requirement of 0.25%. The cost would be $322.5, enabling you to trade a volume of $100,000 in the market.

Leverage trading allows you to capitalize on minimal pip movements in the market by handling substantial volumes. If the concept of “leverage” is not entirely clear yet, don’t worry. We will delve into more detail about it in upcoming modules. 


Risk, in any situation, is fundamentally rooted in uncertainty, defined as the chance of an outcome differing from what was expected. In the realm of finance, risk is specifically articulated as:

“The chance of an investment’s actual return being different than expected.”

Trading the financial markets is often described as the trading of risk. For instance, if one decides to buy EUR/USD, it effectively signifies the belief that the Euro will strengthen against the US Dollar. However, the risk in this scenario is the potential for the Euro to weaken against the US Dollar, leading to an adverse movement.

In simpler terms, financial risk boils down to the possibility of losing a portion or the entirety of the original investment.

Trading the financial markets involves accepting risk, and the willingness to “risk” the market going against us is rooted in the understanding that risk is not just a vulnerability but also an avenue for potential opportunity and significant financial gains.

In essence, Risk = Opportunity, and the relationship is direct – the higher the risk, the higher the potential opportunity.

This principle is encapsulated in the concept of the Risk/Reward Trade-Off, where the level of risk an investor undertakes is balanced against the potential returns. It can be summarized as follows:
Low Risk = Low Return
High Risk = High Return
Investors and traders assess their risk tolerance and appetite for potential returns, striking a balance that aligns with their financial goals and risk tolerance. While high-risk endeavors come with the potential for substantial gains, it’s crucial to approach them with a well-defined risk management strategy to mitigate potential losses.

Trading the financial markets involves accepting risk, and while it exposes us to the possibility of adverse market movements, it also opens the potential for significant financial gains.

In this context:

Risk = Opportunity

Moreover, the principle of the Risk/Reward Trade-Off is crucial. It states that the level of risk an investor assumes should be commensurate with the potential returns. This relationship can be summarized as follows:

Low Risk = Low Return

High Risk = High Return

The idea is that if an investor is willing to take on higher risk, they should expect the potential for greater returns to compensate for the increased risk. This trade-off is a fundamental concept in financial decision-making, guiding investors in finding the right balance between risk and potential reward to align with their financial objectives and risk tolerance. Successful traders often carefully consider this trade-off and implement risk management strategies to protect their capital while pursuing opportunities in the market.

Stop Loss Orders: The Key to Risk Management

Stop Loss Orders stand out as the single most crucial risk management tool and should always be a part of your trading strategy.

Types of Stops:

Breakeven Stops: Executed when gains equal losses, providing a level of protection for your initial investment.

Time Stops: Depend on a predetermined period passing before the order is executed. This helps to manage trades based on a set timeframe.

Trailing Stops: Set at a percentage level below the market price. This allows you to secure profits while minimizing potential losses. Trailing stops provide flexibility by adjusting to market movements.

It’s essential to embrace losses as a part of trading, manage them effectively, and learning from each experience. Neglecting losses or allowing them to accumulate unchecked can lead to significant setbacks, potentially wiping out your entire trading account. Therefore, disciplined risk management, including the use of Stop Loss Orders, is crucial for long-term success in trading.

Understanding the relationship between risk and return is fundamental in investment and trading:

Low-risk investments typically offer lower return potential.

Medium-risk investments come with a moderate return potential.

High-risk investments offer the potential for higher returns.

Your trading style often determines the level of risk in your strategy. Even the most effective strategies are limited if risk is not properly managed.

Your Risk Tolerance plays a crucial role, representing your ability to handle uncertainty about potential losses in your investment portfolio. Your risk tolerance is influenced by:

Income: Personal income and circumstances affect risk appetite. For example, someone on a low salary about to get married might have a lower to moderate risk appetite compared to a single person on a median salary.

Time Horizon: The duration you plan to keep your money invested. Longer time horizons are associated with less risk compared to shorter time horizons.


Investment Objectives: The magnitude of your financial goals influences the level of risk you are likely willing to take on.
Ultimately, your risk tolerance is unique to you, and a thoughtful consideration of income, time horizon, and investment objectives will guide you in determining an appropriate level of risk in your investment or trading strategy.

Asset Allocation: Balancing Risk and Reward

Asset allocation is an investment strategy designed to balance risk and reward by distributing a portfolio’s assets according to your investment goals, risk tolerance, and time horizon.

Different asset allocations carry varying levels of risk. Here’s an example of the risk associated with different allocations:

  • Aggressive Growth: High Risk
  • Growth: Moderate to High Risk
  • Balanced: Moderate Risk
  • Conservative: Low to Moderate Risk
  • Income: Low Risk 

Diversification: Reducing Risk through Mixing

Diversification, a risk management technique, involves spreading your portfolio across various investments. It helps offset unsystematic risk, which is specific to industries or companies. The rationale is that poor-performing assets may be balanced by better-performing ones, smoothing out unsystematic risk.

Correlation and Diversification:

Gold and the US Dollar: Inversely correlated; gold appreciates as the dollar weakens.

Gold and Crude Oil: Correlated; rising crude oil prices often lead to an increase in the value of gold as a hedge against inflation.

Controlling Leverage: Reducing Risk

Leverage, a tool to magnify profits, should be tailored to your risk appetite. Adjusting margin requirements can reduce leverage for those who are risk-averse.

Be Cautious with Leverage:

Leverage can be compared to a credit card; use it wisely and avoid getting carried away with borrowed money.

Technical Analysis: Enhancing Risk Management

Technical analysis is a vital tool in risk management. It helps:

  • Identify entry/exit points.
  • Recognize support/resistance levels.
  • Strategically set stop-loss orders.
  • Identify trends and chart patterns.
  • Establish risk parameters using technical indicators.


Utilizing technical analysis aids in risk reduction and improves the likelihood of profitable trading.

1: Use Stop Losses

Using a stop loss – a present level at which an open trade is automatically closed – is standard good practice as this can limit your downside risk and also shows trading discipline which is paramount in developing a healthy trading account. However, when markets are incredibly volatile you could experience some slippage with the position not being able to be executed at the exact level specified. In volatile markets, there is often a “gap”, where a product moves substantially lower or higher than expected perhaps as much as 10-15%. With a normal stop loss, you will get the first available price which could cause a large loss and result in a loss greater than your initial deposit.

2: Reduce Your Trade Size

Margin is one of the biggest advantages of CFD trading and at Accuindex Markets our 0.25% on FX, 0.50% on spot gold and major Indices and 3% on commodities are among the most competitive in the marketplace however with any margin trading you should always be aware of how much is required to keep your position in the market A general rule of thumb is that no single trading position should amount to risk exposure of more than 5% of your available capital. However, in volatile market conditions, this kind of leverage is dangerous as any loses will magnify by even more than normal. The best market practice would be to halve your normal trading size over volatile trading conditions.

3: Limit Your Trades

Volatile markets are associated with high volumes of trading, which may cause delays in execution. While online trading normally means you place a trade at a current bid and offer you see, some market maker may widen bid-offer spreads or even temporarily withdraw tradable prices. This means that execution can be delayed and prices to execute it may not be available. Accuindex provides fixed spreads no matter what market conditions but in times of increased volatility it is sometimes better to limit trade execution.

4: Stick to Your Strategy

During volatile times, it’s easy to be shaken and diverted from your normal trading strategy but most experienced traders apply the same strategy to choosing investments as they normally do. While it’s tempting to react to the volatility, it’s incredibly difficult to predict moves in the short term, so you have to stick to your trading strategies and limit your risk exposure when times are volatile.

What are the important bits?

  • We need Risk Management to control our losses
  • Always be sure to know your Risk Tolerance
  • Have a Risk Management strategy – Leverage/Volatility/Diversification/Asset Allocation
  • Incorporate a Stop Loss strategy as part of your Risk management strategy.

Be disciplined in affecting your strategy.


Trading Psychology

  • When engaged in trading, two emotions stand out as particularly common and perilous: fear and greed. These emotions, if left uncontrolled, have the potential to undermine even the soundest trading strategies.

Fear and Greed’s Impact:

  • Risk to Strategies: Fear and greed can jeopardize carefully devised trading strategies.
  • Momentary Lapses: A single instance of fear or greed can lead to impulsive decisions, resulting in the loss of hard-earned profits over months.

Managing Emotions:

  • No Excuse for Losses: Uncontrolled emotions should not serve as an excuse for trading losses, and conversely, losses should not justify unrestrained emotional reactions.

Psychological Impact of Trading:

  • Reciprocal Relationship: Trading has a profound impact on psychology, and in turn, psychological states significantly influence trading decisions.

Understanding Greed:

  • Not Just About Profits: Greed is not merely the desire to make money; it manifests in trying to accumulate wealth too quickly.
  • Forms of Greed in Trading: Trading in excessively large sizes, frequent trading, having unrealistic expectations, and yearning for a substantial single trade instead of steady equity growth are examples of greed.

Understanding Fear:

  • Two Faces of Fear:
    • Fear of Loss: Compels premature closure of profitable trades, leading to missed potential profits.
    • Fear of Missing Out (FOMO): Drives traders to abandon their strategy, fearing they might miss a significant price move.

Consequences of Fear:

  • Overtrading: Fear contributes to overtrading.
  • Missed Entry/Exit Points: Unchecked fear results in mistimed entry and exit points.

Closing Message:

Don’t Be Scared: A direct admonition to traders, emphasizing the importance of overcoming fear in making sound trading decisions.

  • Risk management is the process of determining the acceptable level of risk to achieve profitability. It is a crucial aspect of trading, helping traders maintain composure and clear thinking. Consider the following points when navigating the complexities of trading:


  1. Trade Size:
  • Start with small trades to test the market, akin to checking water temperature before a bath.
  • Large trade sizes relative to your account can lead to exaggerated price swings, emotional turmoil, and mistakes driven by fear or greed.
  1. Risk/Reward Ratio:
  • Aim for a minimum 3-1 or at worst 2-1 Profit/Loss ratio.
  • For instance, if targeting a 60-pip profit, limit maximum loss to around 30 pips.
  • A well-planned risk/reward ratio prepares you mentally for potential losses, preventing emotional trades.
  1. P/L Targets:
  • Establish exit points before initiating a trade.
  • Set daily Profit/Loss targets to avoid overtrading and prevent giving back profits to the market.
  • P/L targets mitigate the influence of fear and greed on trading decisions.
  1. Market Volatility:
  • Be aware of varying market volatility during different times of the day.
  • Afternoon in London (morning in New York) tends to be the most volatile, with significant price swings.
  • During periods of extreme volatility, consider standing aside unless you are an experienced trader.


Closing Thoughts:

  • Psychological Impact: Trading is not just about numbers; it significantly influences psychology.
  • Maintaining Control: Risk management teaches traders to pace themselves, think clearly, and keep emotions under control.
  • Avoid Emotional Trades: Emotional trades can erase profits from many successful trades.

Here are valuable tips to enhance your trading experience:


  1. Implement Risk Management:
  • Utilize stop losses and limits to remove emotions from closing a trade and prevent unnecessary losses.
  • Avoid letting losses grow due to emotional attachment; place stop loss orders when making a trade.


  1. Treat Trading as a Business: 
  • Approach trading with the same seriousness as a business venture; avoid impulsive decisions.
  • Invest time in researching the markets even when not actively trading for informed decision-making.


  1. Patience:
  • Practice patience in trading; avoid trading impulsively or out of boredom.
  • Wait for indicators to align, be patient for the right entry points, and resist acting on tips without personal research.
  1. Avoid Overtrading:
  • Overtrading, chasing every small price move, is a common mistake.
  • Anticipate price moves rather than constantly chasing them, exercise discipline in your trading approach.
  1. Timeframes:
  • Choose the trading timeframe that suits your lifestyle and concentration level.
  • Short-term trading demands intense focus, while longer-term trades are suitable for traders with other commitments.
  1. Coping with Losing Trades:
  • Learn to embrace losses as learning opportunities rather than failures.
  • Analyze why a losing trade occurred, adjust your strategy, and avoid blaming external factors.
  1. Taking Profit:
  • Set rules for profit-taking; don’t let fear lead to premature profit-taking.
  • Establish guidelines for closing a trade, such as retracement limits, to manage emotions and ensure disciplined trading.
  1. Building Equity Steadily:
  • Aim for steady account growth rather than seeking instant fortunes.
  • A realistic goal is to build equity by around 5% per day; manage expectations and prepare for periods of drawdown.


  1. Psychological Control:
  • Acknowledge the influence of emotions in trading; strive to control emotions instead of letting them control your decisions.
  • Take breaks after losing streaks to reassess your strategy and maintain a clear mindset.

In Conclusion:


  • Trading success lies in understanding risk, exercising discipline, and staying emotionally resilient.
  • Maintain control over your trading activities and emotions to foster a sustainable and rewarding trading career.