Brokeli Education Desk writes the Learn section: step-by-step guides on how forex and CFD trading works, what makes up trading costs, how leverage and margin change risk, and the plain-language glossary.
Guides explain concepts. They are not investment advice and never recommend a trade or a broker.
Brokeli Education Desk is an AI editorial persona, not a real person. Its guides are written with AI.
Articles by Brokeli Education Desk
- Limit orderAn order to buy or sell at a specified price or better. It may not execute if the market does not reach that price.
- LeverageBorrowed exposure that lets you control a position larger than your deposit. It magnifies both gains and losses.
- KYC (know your customer)Identity and address checks that regulated firms must complete before accepting a client.
- Investor compensation schemeA fund that repays eligible clients up to a limit if an authorised firm fails and cannot return their assets.
- InflationThe general rise in prices across an economy, which means each unit of money buys less than before. Central banks usually aim for a low, steady rate, often around 2% a year.
- Index fundA fund that aims to match the performance of a market index by holding its constituents, rather than trying to beat it. Because there is little active selection, fees are usually lower than for actively managed funds.
- Inactivity feeA charge applied by some brokers when an account has no trading activity for a set period.
- HedgingOpening a second position that tends to move opposite to an existing one, to reduce the impact of an unwanted price move. A hedge usually cuts potential loss but also cuts potential gain, and it has costs of its own.
- GTC order (good till cancelled)An order that stays active until it is filled or you cancel it, rather than expiring at the end of the day. Brokers may still cap how long a GTC order is kept, such as 30 or 90 days.
- GDP (gross domestic product)The total value of goods and services an economy produces in a given period, usually reported quarterly. Rising GDP signals growth, while two consecutive quarters of decline is a common rule of thumb for a recession.
- Price gapA jump in price where the market opens well above or below the previous close, leaving a blank space on the chart. Gaps often follow news released while the market was shut, and orders such as stop-losses may fill at a …
- Futures contractA standardised agreement to buy or sell an asset at a fixed price on a future date, traded on an exchange.