Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.
You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
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Trading range
During a trading range, the market repeatedly moves between an upper and lower area without establishing a lasting trend. Buyers tend to appear near the bottom, while sellers become active near the top. The same term can also mean the simple distance between the highest and lowest price during a stated period. A stock with a 52-week low of $40 and high of $65 has a 52-week trading range of $40 to $65. Context separates the two meanings. One describes sideways price behaviour. The other reports the highest and lowest prices reached within a chosen window.
Trading Styles
Trading styles group traders by how they make decisions and how long they normally hold positions. Scalpers may hold trades for seconds or minutes. Day traders close positions before the session ends. Swing traders look for moves lasting several days or weeks, while position traders may remain invested for months. Style can also refer to the method used, such as technical, fundamental, systematic, or event-driven trading. The names describe typical behaviour rather than strict rules. A person may use more than one style for different markets. The practical differences include time commitment, trading frequency, costs, patience, and exposure to overnight price changes.
Trading time zones
The period where markets open for trading activities, at different times around the world.
Trading Volume
Trading volume counts how much of an asset changed hands during a period. For shares, it is usually the number of shares traded. Futures markets count contracts, while crypto markets may report coins or the money value of transactions. High volume shows strong activity, but it does not tell you whether buyers or sellers will win. Every completed trade contains both. Traders compare volume with its normal level to judge how much participation sits behind a price move. A breakout on unusually high volume may attract more attention than the same move during a quiet session, although volume alone cannot confirm that it will continue.
Trailing Stop Loss
A stop loss order that adjusts as the price moves favourably. It rises with price increases but maintains its level during drops. If the price goes below the stop price, the position automatically closes, limiting losses.
Transaction Risk
A company can agree on a price today but receive the money months later. If the payment is in a foreign currency, its home-currency value may change before settlement. This is transaction risk. A UK exporter expecting €100,000 knows the euro amount, but not exactly how many pounds it will receive when the customer pays. A weaker euro would reduce the sterling value. Companies may manage this exposure with forward contracts, options, matching foreign-currency costs, or earlier payment terms. The risk comes from an identified future payment or receipt, which separates it from the broader effect that currencies may have on a company’s overall business value.
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