Index trading lets you trade the direction of an entire stock market in a single position — instead of picking individual companies. Indices like the S&P 500, Dow and Nasdaq are popular for their strong trends and built-in diversification. Here is how to trade indices as CFDs, with your real SCapitalFX conditions.
What is a stock index?
An index measures the combined performance of a group of company shares. For example, the US 500 (S&P 500) tracks 500 of the largest US companies, so it reflects the broad US stock market. When you trade an index CFD you are betting on whether that whole basket goes up or down — no need to analyse single stocks.
Why trade indices?
Instant diversification — one trade gives exposure to dozens or hundreds of companies.
Strong, clean trends — indices often trend more smoothly than single stocks.
No single-company risk — one bad earnings report will not sink the whole index.
Go long or short with leverage, from the same account as forex and gold.
Indices you can trade at SCapitalFX
Symbol
Tracks
Spread from (Raw)
Max leverage
US500
S&P 500 (US)
0.5 pts
1:50
US30
Dow Jones (US)
1.8 pts
1:50
USTEC
US tech 100 / Nasdaq
1.5 pts
1:100
UK100
FTSE 100 (UK)
1.2 pts
1:50
DE30
DAX (Germany)
1.2 pts
1:100
JP225
Nikkei 225 (Japan)
7.0 pts
1:100
All carry the same $6 round-turn commission on a Raw account (zero on Standard).
How profit and loss work
One standard lot equals one index contract, so each 1.0-point move is worth about $1 per lot. Indices like the Dow can move hundreds of points in a day, so a 100-point move on 1 lot is around $100. Most beginners trade 0.01 lots, where that same 100-point move is about $1 — keeping risk small.
What moves index prices?
Company earnings from the big constituents
The economy — growth, jobs and inflation data
Interest rates set by central banks
Risk sentiment — optimism lifts indices, fear pulls them down
Open an index chart such as US500 and check the trend on a higher timeframe.
Decide long or short, then set a stop-loss and take-profit.
Start with 0.01 lots and manage the trade to your plan.
Best times to trade indices
Trade each index around its home session: US indices (US500, US30, USTEC) are most active during the New York session and around US data; DE30 and UK100 move most during the London session; JP225 during the Asian session. See our best time to trade guide.
Risk warning: Trading index CFDs on margin carries a high level of risk and may not be suitable for everyone. Indices can move sharply around news. You could lose some or all of your invested capital.
Frequently asked questions
What is the easiest index for beginners?
The US 500 (S&P 500) is popular with beginners thanks to its liquidity, clear trends and tight spreads.
Can I short an index?
Yes. As a CFD you can go short to profit from a falling market, just as you go long in a rising one.
How much money do I need to trade indices?
You can start small with 0.01-lot positions. Because indices move in large point swings, keep your size modest and always use a stop-loss.
Is trading an index the same as trading stocks?
It gives you exposure to the overall stock market in one position, without the risk of any single company. See forex vs stocks.
Forex and stocks are two of the most popular ways to grow money in the markets — but they work very differently. If you are deciding where to start, this guide compares them on the things that actually matter: cost, hours, leverage, capital needed and risk.
The quick answer
Forex suits traders who want low startup costs, flexible 24-hour access and short-term opportunities. Stocks suit investors who want to own a piece of a company and hold for the longer term. Many people do both — and you can get stock-market exposure through indices without buying individual shares.
Forex vs stocks at a glance
Feature
Forex
Stocks
What you trade
Currency pairs (EUR/USD…)
Shares of companies
Market hours
24 hours, 5 days a week
Stock-exchange hours only
Leverage
Up to 1:200
Usually much lower
Starting capital
Low (from $10)
Often higher
Number of markets
A few dozen key pairs
Thousands of stocks
Go short easily?
Yes
Harder for retail
Best for
Active, flexible trading
Longer-term investing
Advantages of trading forex
Open 24/5 — trade around your schedule.
Low entry — start from $10 with micro lots.
High liquidity — major pairs are easy to enter and exit with tight spreads.
Profit in both directions — go long or short with equal ease.
Fewer markets to follow — you can focus on a handful of pairs.
Advantages of stocks
Ownership — a share is a slice of a real company, sometimes paying dividends.
Long-term growth — historically strong over years and decades.
Huge choice — thousands of companies across sectors.
Which is better for beginners?
Neither is “better” — it depends on your goals:
Want short-term, flexible trading with a small budget? Forex is a natural starting point.
Want to invest and hold for years? Individual stocks may suit you more.
Whichever you choose, the fundamentals are the same: learn the basics, manage risk, and practise first. Start with our forex for beginners guide and learn about leverage before you trade.
Get stock-market exposure without buying single stocks
At SCapitalFX you can trade forex, gold, energy, crypto and stock indices from one account. Indices like the US 500 (S&P 500), US30 (Dow) and Nasdaq let you trade the direction of the whole stock market in a single position — a popular way to get equity exposure with the flexibility of CFDs.
Risk warning: Trading forex and CFDs on margin carries a high level of risk and may not be suitable for everyone. You could lose some or all of your invested capital.
Frequently asked questions
Is forex riskier than stocks?
Forex is often more volatile in the short term and the use of higher leverage increases risk. With disciplined risk management, both can be traded responsibly.
Can I trade forex with less money than stocks?
Usually yes — you can start forex from $10 with micro lots, while building a stock portfolio often needs more capital.
Can I trade stocks at SCapitalFX?
You can trade major stock indices (like the S&P 500, Dow and Nasdaq) for broad market exposure, alongside forex, gold, energy and crypto.
Which should a beginner start with?
If you want flexible, low-cost, short-term trading, forex is a common first step. Practise on a demo before risking real money.
Every time you open a trade, there is a small built-in cost called the spread. Understanding it is one of the easiest ways to trade smarter and keep more of your profits. This guide explains what the spread is, how it is measured, why it changes, and how to pay less.
What is the spread in forex?
The spread is the difference between the buy price (ask) and the sell price (bid) of a market. When you open a trade you start slightly in the negative by exactly this amount — so the spread is effectively your cost of entry.
Example: if EUR/USD is quoted as 1.0800 / 1.0801, the spread is 1 pip. You buy at 1.0801 and could immediately sell at 1.0800 — the 1-pip gap is the cost.
How is the spread measured?
In forex the spread is measured in pips (see what is a pip). On gold, indices and crypto it is measured as a price gap in dollars or points. The tighter (smaller) the spread, the less you pay to trade.
What a spread costs you
Cost = spread × pip value × lots. On 1 standard lot of EUR/USD (where 1 pip = $10), a 1-pip spread costs about $10 to enter a trade. On a micro lot it is just $0.10.
Why do spreads change?
Liquidity: major pairs like EUR/USD have the tightest spreads; exotic pairs are wider.
Volatility: spreads can widen during big news or thin markets.
Trading session: spreads are usually tightest during the busy London–New York overlap.
Account type: Raw-spread accounts show near-zero spreads plus a commission; Standard accounts bundle the cost into a slightly wider spread.
Spreads at SCapitalFX
You choose how you pay your spread cost:
Standard account: spreads from 1.0 pip on EUR/USD, with no commission — simple, all-in pricing.
Raw account: spreads from 0.0 pips on EUR/USD plus a small $6 round-turn commission — usually cheaper for active traders.
Trade liquid major pairs (EUR/USD, GBP/USD) rather than exotics.
Trade during active sessions when spreads are tightest — see best time to trade.
Use a Raw account if you trade often or in size.
Avoid trading right into major news, when spreads can widen.
Risk warning: Trading forex and CFDs on margin carries a high level of risk and may not be suitable for everyone. You could lose some or all of your invested capital.
Frequently asked questions
Is the spread the only cost of trading?
On a Standard account, the spread is your main cost. On a Raw account you pay a smaller spread plus a fixed commission. Holding trades overnight may also incur a swap fee.
What is a good spread in forex?
For EUR/USD, anything around 1 pip or below is competitive. Raw accounts can offer near 0.0 pips plus commission.
Why did my spread suddenly get wider?
Usually because of low liquidity or high volatility — often around major news or at the daily rollover.
Standard or Raw — which has the lower cost?
For frequent or larger trades, Raw is usually cheaper once you include commission. For small or occasional trades, Standard is simpler.
If you trade forex, you will hear the word “pip” constantly — it is how profit, loss, spreads and risk are all measured. The good news: it is simple once you see it. This guide explains what a pip is, how to work out its value, and why it matters, with clear examples.
What is a pip?
A pip (“percentage in point”) is the smallest standard price move in a currency pair. For most pairs it is the 4th decimal place, or 0.0001.
For example, if EUR/USD moves from 1.0800 to 1.0801, that is a 1-pip move. From 1.0800 to 1.0850 is a 50-pip move.
Pips vs pipettes
Most modern brokers, including SCapitalFX, quote an extra decimal (the 5th) for more precision. That smaller unit is a pipette (one-tenth of a pip). So a price of 1.08005 shows 1.0800 (pips) plus a 5 (pipettes). When traders talk about moves and spreads, they almost always mean pips.
What about JPY pairs?
For pairs that include the Japanese yen (like USD/JPY), a pip is the 2nd decimal place (0.01) instead of the 4th, because the yen is quoted differently. So USD/JPY moving from 150.00 to 150.01 is a 1-pip move.
How much is a pip worth?
A pip’s cash value depends on your trade size (lot). For pairs quoted in US dollars, the standard values are:
Lot size
Units
Value of 1 pip
Standard lot (1.0)
100,000
$10
Mini lot (0.1)
10,000
$1
Micro lot (0.01)
1,000
$0.10
So if you buy 1 mini lot of EUR/USD and it rises 20 pips, that is 20 × $1 = +$20. The same 20-pip move on a micro lot is just $2 — which is why beginners start with micro lots.
Why pips matter
Profit and loss are counted in pips.
The spread (your main trading cost) is measured in pips — see what is the spread.
Risk management works in pips: your stop-loss distance in pips, times your pip value, equals your money at risk.
At SCapitalFX, EUR/USD spreads start from just 1.0 pip on a Standard account and 0.0 pips on a Raw account — so you keep more of every pip you make. Compare them in Standard vs Raw.
Risk warning: Trading forex on margin carries a high level of risk and may not be suitable for everyone. You could lose some or all of your invested capital.
Frequently asked questions
What is a pip in simple terms?
It is the smallest standard price move in a currency pair — usually the 4th decimal place (0.0001) — and it is how profit and loss are measured.
How much is 1 pip worth?
About $10 per standard lot, $1 per mini lot, and $0.10 per micro lot for US-dollar-quoted pairs.
What is the difference between a pip and a pipette?
A pipette is one-tenth of a pip (the 5th decimal). Brokers show it for extra pricing precision.
How many pips is a good daily target?
There is no fixed number — focus on a positive risk-to-reward ratio (for example risking 20 pips to make 40) rather than chasing a pip count.
Cryptocurrencies like Bitcoin and Ethereum are among the most exciting — and most volatile — markets you can trade. At SCapitalFX you trade them as CFDs, which means you can profit from both rising and falling prices, use leverage, and fund with crypto — all from the same account you use for forex and gold. Here is how crypto CFD trading works and how to start.
What is crypto CFD trading?
A crypto CFD (contract for difference) lets you trade the price of a cryptocurrency without owning the coin. You are not buying Bitcoin into a wallet — you are trading on whether its price rises or falls. The advantages:
Go long or short — profit (or lose) whether crypto rises or falls.
No wallet or exchange account to manage, and no private keys to secure.
Leverage up to 1:20, so a smaller deposit controls a larger position.
One account for crypto, forex, gold, indices and energy.
Bitcoin and Ethereum CFDs at SCapitalFX
BTC/USD
ETH/USD
1 lot equals
1 Bitcoin
1 Ethereum
Spread from (Standard)
$25
$2.50
Spread from (Raw)
$15
$1.50
Commission (Raw)
$6 round-turn / lot
$6 round-turn / lot
Max leverage
1:20
1:20
Min trade size
0.01
0.01
How profit and loss work: one lot of BTC/USD equals 1 Bitcoin, so a $100 move in the Bitcoin price is $100 of profit or loss per lot. Most beginners trade micro lots (0.01) — so the same $100 move is just $1 — to keep risk small while crypto swings.
Why crypto gets lower leverage
Crypto is far more volatile than forex, so leverage is capped at 1:20 (versus up to 1:200 on forex majors). That is a safety feature: at 1:20 you post 5% margin, giving your account more room to handle big swings. Learn more in our guide to leverage.
Open the BTC/USD chart (or ETH/USD) and study the trend on a higher timeframe.
Decide long or short based on your analysis.
Set a stop-loss and take-profit before you enter.
Start with a micro lot (0.01) to keep risk small.
Place the trade and manage it — stick to your plan.
What moves crypto prices?
Adoption and demand — institutional buying, ETFs and real-world use.
Regulation and news — government decisions can move prices fast.
Macro conditions — interest rates, the US dollar and overall risk appetite.
The Bitcoin halving cycle — supply issuance drops roughly every four years.
Sentiment and liquidations — fear and greed drive sharp, sudden moves.
The crypto market itself runs around the clock, including weekends (check the app for exact CFD trading hours).
Managing risk with crypto
Trade small — micro lots while you learn.
Always use a stop-loss; crypto can move 5–10% in a single day.
Do not max out leverage just because you can.
Only risk money you can afford to lose.
Risk warning: Cryptocurrencies are highly volatile and trading crypto CFDs on leverage carries a high level of risk. You could lose some or all of your invested capital. Never trade with money you cannot afford to lose.
The forex market runs 24 hours a day, five days a week — but that does not mean every hour is worth trading. Knowing when to trade is just as important as knowing what to trade. This guide breaks down the global sessions, when the market is most active, and the best (and worst) times to place your trades.
Is forex open 24 hours?
Yes. Forex trades continuously from Sunday evening to Friday evening because it follows the business hours of major financial centres around the world. As one region closes, another opens, so the market never sleeps during the week — but it does close on weekends.
The four major forex sessions
Activity is organised into four sessions named after key financial hubs. Times below are approximate in GMT and shift slightly with daylight saving:
Session
Hours (GMT)
Character
Sydney
21:00 – 06:00
Quiet open of the week
Tokyo (Asian)
00:00 – 09:00
Moderate; JPY, AUD, NZD active
London (European)
08:00 – 16:00
High volume — the biggest session
New York (US)
13:00 – 21:00
High volume; USD and news-driven
The best time to trade: session overlaps
The most active — and usually the best — time to trade is when two sessions are open at once, because liquidity and volatility peak:
London–New York overlap (13:00–16:00 GMT) — the prime window. The two largest sessions run together, giving the tightest spreads and the biggest moves of the day.
Tokyo–London overlap (around 08:00 GMT): a smaller pickup as Europe comes online.
If you can only trade for a couple of hours a day, the London–New York overlap is usually where the best opportunities are.
Best times for specific markets
EUR/USD and GBP/USD: most active during London and New York.
USD/JPY, AUD/USD, NZD/USD: liveliest during the Asian session.
Gold (XAU/USD) and US indices: follow the London–New York window and US data — see our gold trading guide.
Best days of the week to trade
Tuesday to Thursday are typically the most active, trend-friendly days.
Monday often starts slow while the market finds direction.
Friday afternoon winds down as liquidity thins before the weekend.
When to avoid trading
Right into major news (rate decisions, NFP, CPI) unless you have a clear plan — spreads widen and prices whipsaw.
Late New York / daily rollover, when liquidity is thin.
Late Friday and weekends, when the market is closing or shut.
A simple rule for beginners
Trade the London–New York overlap, mid-week, with a plan — and sit out the quiet, low-liquidity hours. Good timing beats long hours in front of the screen. New to the basics? Start with our forex for beginners guide.
Risk warning: Trading forex and CFDs on margin carries a high level of risk and may not be suitable for everyone. You could lose some or all of your invested capital.
Frequently asked questions
What is the single best time to trade forex?
The London–New York overlap, roughly 13:00–16:00 GMT, when liquidity and volatility are highest.
Is forex open on weekends?
No. The market closes Friday evening and reopens Sunday evening (GMT). Crypto markets, however, trade through the weekend.
What is the best time to trade gold?
Gold is most active during the London–New York overlap and around major US data releases.
Can I trade forex at night?
Yes — the Asian session runs through the night in Europe/US time and suits pairs like USD/JPY and AUD/USD.
Do the best times change with daylight saving?
Yes. Session times shift by about an hour when clocks change, so adjust the GMT windows accordingly.
Leverage is one of the most powerful — and most misunderstood — tools in trading. Used wisely, it lets you trade meaningful positions with a small deposit. Used carelessly, it can drain an account fast. This guide explains exactly what leverage is, how it works with real examples, the risks, and how much you should actually use.
What is leverage in forex?
Leverage is borrowed buying power from your broker that lets you control a larger position than your own cash would allow. It is written as a ratio such as 1:200, which means every $1 of your money can control $200 in the market. At SCapitalFX you can trade with leverage up to 1:200 — so $500 could control a position worth up to $100,000.
What is margin? (leverage’s twin)
Margin is the flip side of leverage: the amount of your own money set aside to open a leveraged trade. The higher the leverage, the smaller the margin needed:
At 1:200, margin = 0.5% of the position size
At 1:100, margin = 1%
At 1:20, margin = 5%
How leverage works: a real example
Say you want to trade 1 standard lot of EUR/USD (100,000 units) at a price of 1.0800. The full position is worth $108,000.
Without leverage, you would need the full $108,000.
At 1:200, you only need about $540 in margin ($108,000 ÷ 200).
Now see how it magnifies the result. If EUR/USD moves 1% in your favour, that is about +$1,080 — more than double your $540 margin. But a 1% move against you is -$1,080, far more than your margin. That is the double-edged nature of leverage: it multiplies profits and losses equally.
Leverage by asset class at SCapitalFX
Maximum leverage depends on the market, because some assets are more volatile than others:
Asset
Maximum leverage
Forex majors (EUR/USD, GBP/USD…)
1:200
Gold (XAU/USD)
1:100
Indices (US30, US500…)
1:50
Crypto (BTC, ETH)
1:20
More volatile assets get lower leverage to protect you from outsized swings.
Margin call and stop-out: the safety nets
If losses eat into your margin, two levels kick in to limit the damage:
Margin call (100%): a warning that your equity has dropped to your used margin — top up or reduce risk.
Stop-out (50%): if equity keeps falling to half your used margin, positions are closed automatically to prevent further losses.
These protect you, but never rely on them — always set a stop-loss yourself.
How much leverage should a beginner use?
The key insight: having access to 1:200 does not mean you should use all of it. The smart approach is to:
Think in terms of risk per trade (1–2% of your balance), not maximum position size.
Use leverage to free up capital — not to take giant positions.
Risk warning: Trading on leverage carries a high level of risk. It magnifies losses as much as gains, and you could lose your invested capital quickly. Use leverage responsibly and never risk money you cannot afford to lose.
Frequently asked questions
What does 1:200 leverage mean?
It means $1 of your money can control $200 in the market — so you only need about 0.5% of a position’s value as margin.
Is high leverage good or bad?
Neither by itself — it is a tool. It is helpful for capital efficiency but dangerous if you oversize positions. The risk comes from position size, not the leverage number alone.
How much margin do I need?
Divide the position value by the leverage. A $20,000 position at 1:200 needs $100 in margin; at 1:20 it needs $1,000.
Can I lose more than I deposit?
The stop-out level closes positions at 50% margin to limit losses, but fast markets can still cause large, rapid losses — which is why a stop-loss is essential.
What leverage is best for beginners?
Use small effective leverage while learning: trade micro lots, risk 1–2% per trade, and keep most of your balance unused.
Gold has been a store of value for thousands of years, and today it is one of the most popular markets in the world to trade. Known by its ticker XAU/USD, gold offers strong trends, deep liquidity and almost round-the-clock action — which is why traders of every level keep it on their watchlist.
This complete guide explains how to trade gold (XAU/USD) step by step: how it works, what moves the price, how much money you need, the best times to trade, beginner-friendly strategies, and how to control your risk. Every number below uses real SCapitalFX conditions, so you know exactly what to expect.
What is XAU/USD (gold)?
XAU/USD is the symbol for gold priced in US dollars. “XAU” is the international code for one troy ounce of gold, and “USD” is the US dollar — so the price simply tells you how many dollars one ounce of gold costs. If XAU/USD is 3,000, one ounce of gold is worth $3,000.
When you trade gold at SCapitalFX you trade it as a CFD (contract for difference). You do not buy physical bars or coins — you trade the price movement. The big advantages:
You can profit (or lose) whether gold goes up — you “buy” / go long — or down — you “sell” / go short.
You can use leverage to control a larger position with a smaller deposit.
There is nothing to store or insure, and you can enter and exit in seconds.
How gold trading actually works (the numbers most guides skip)
Here is exactly how gold is structured on the platform — the concrete details that decide your profit, loss and cost:
Symbol: XAU/USD
Contract size: 1 standard lot = 100 ounces of gold
Minimum trade size: 0.01 lot (a “micro lot” = 1 ounce)
Maximum leverage:1:100
Spreads from: $0.08 (Raw account) or $0.25 (Standard account)
How profit and loss work: because one standard lot is 100 ounces, every $1 move in the gold price equals $100 of profit or loss on a 1-lot position. A micro lot (0.01) is 1 ounce, so each $1 move is worth just $1 — ideal for beginners who want to keep risk small while they learn.
What a gold trade really costs
Your cost is the spread (and, on a Raw account, a small commission). Here is the round-turn cost of trading one standard lot of gold:
Standard account
Raw account
Spread (from)
$0.25 / oz
$0.08 / oz
Spread cost per lot (100 oz)
~$25
~$8
Commission
None
$6 round-turn / lot
Total cost per lot
~$25
~$14
Max leverage
1:100
1:100
Min trade size
0.01 lot (1 oz)
0.01 lot (1 oz)
So trading a full lot of gold costs roughly $14 on a Raw account ($8 spread + $6 commission) versus about $25 on Standard — one reason active gold traders often choose Raw. See our Standard vs Raw account guide for the full comparison.
What moves the price of gold?
Gold does not pay interest or dividends — its price is driven by supply, demand and sentiment. The main forces are:
The US dollar. Gold is priced in dollars, so it usually moves inversely to the USD. A weaker dollar tends to lift gold; a stronger dollar tends to weigh on it.
Interest rates. When central banks (especially the US Federal Reserve) raise rates, holding non-yielding gold becomes less attractive. Rate cuts often support gold.
Inflation. Gold is widely seen as an inflation hedge, so rising inflation expectations can increase demand.
Safe-haven demand. During wars, crises or market panic, investors move into gold for safety, which can cause sharp rallies.
Central-bank and physical demand. Large buying by central banks, plus jewellery and industrial demand, shape the long-term trend.
You do not need to predict all of this. Most beginners do better watching the US dollar and major US data releases, and trading with the trend.
Practise on a demo. Get comfortable placing, modifying and closing gold trades with virtual money first.
Fund your account. The fastest low-cost method is crypto — you can deposit with USDT, BTC and 50+ coins.
Open the XAU/USD chart. Find gold in your watchlist and study the trend on a higher timeframe (like the 4-hour or daily) before zooming in.
Decide buy or sell. Going long if you expect gold to rise, short if you expect it to fall.
Set your stop-loss and take-profit. Always decide your exit before you enter.
Choose your position size. Start with micro lots (0.01) so each $1 move is only $1.
Place the trade and manage it. Follow your plan — don’t move your stop further away just to avoid a loss.
A simple worked example
Suppose gold is trading at $3,000 and you go long 0.10 lots (10 ounces). You set a stop-loss $10 below and a take-profit $20 above:
If gold rises $20 to $3,020, your profit is 10 oz × $20 = +$200.
If gold falls $10 to $2,990 and hits your stop, your loss is 10 oz × $10 = -$100.
That is a 2:1 reward-to-risk trade — a healthy ratio to aim for as a beginner.
How much money do you need to trade gold?
Less than most people think. Thanks to micro lots and 1:100 leverage, you can start small:
Margin: at 1:100 you only need about 1% of the position’s value as margin. For a 0.10-lot trade (10 oz) with gold near $3,000, the position is worth about $3,000 and needs roughly $30 in margin.
Risk per trade: the bigger limit is your risk, not your margin. Gold can move $20–$50 in a day, so size your trades so a normal move can’t wipe you out.
You can open a Standard account from just $10, but for gold specifically we suggest a little more buffer so your stop-loss has room. New to position sizing? Read how to start trading with $10 and the fundamentals in our forex trading for beginners guide.
The best times to trade gold
Gold trades nearly 24 hours a day, but liquidity and volatility are not equal across the day. The most active window is the London–New York overlap:
Session
Approx. time (GMT)
What to expect
Asian
00:00 – 08:00
Quieter, narrower ranges
London
08:00 – 16:00
Volatility picks up
London–New York overlap
13:00 – 16:00
Most active — biggest moves
New York
13:00 – 21:00
Driven by US data and the dollar
Gold is especially reactive to US news such as Non-Farm Payrolls (NFP), CPI inflation data and Federal Reserve (FOMC) decisions. These can cause sudden, large moves — exciting but risky for beginners.
Gold trading strategies for beginners
Trend following. Gold trends strongly. Identify the direction on a higher timeframe, then enter pullbacks in that direction. “The trend is your friend” applies well to gold.
Breakout trading. Gold often consolidates, then breaks out sharply. Mark key support and resistance levels and trade the break, with a stop on the other side of the level.
Range trading. In quiet periods gold bounces between support and resistance. Buy near support, sell near resistance, and stop out if the range breaks.
News and safe-haven moves. Advanced traders position around risk events. Beginners should usually wait until after the volatility settles rather than guessing the direction.
Pick one strategy, practise it on demo, and master it before adding more.
Risk management for gold
Gold is more volatile than most currency pairs, so risk control is essential:
Risk only 1–2% of your balance per trade. On a $500 account that’s $5–$10 of risk — which means small positions and sensible stops.
Always use a stop-loss. Gold’s fast moves can be brutal without one.
Respect leverage. 1:100 is powerful; using the maximum on every trade is the quickest way to lose an account.
Size from your stop, not your margin. Decide how many dollars you’ll risk, divide by your stop distance, and that gives your position size.
Avoid trading right into major news until you have experience.
Common gold-trading mistakes to avoid
Using too much leverage and oversizing positions
Trading without a stop-loss
Chasing price after a big move instead of waiting for a setup
Ignoring the US dollar and interest-rate backdrop
Revenge trading after a loss
Why trade gold with SCapitalFX?
Tight gold spreads from $0.08 on a Raw account
Leverage up to 1:100 and micro lots from 0.01
Fast crypto funding — start with USDT, BTC and 50+ coins
A free demo so you can practise gold trades risk-free first
Risk warning: Trading gold and other CFDs on margin carries a high level of risk and may not be suitable for every investor. Gold can be highly volatile and you could lose some or all of your invested capital. Never trade with money you cannot afford to lose.
Frequently asked questions
Is gold (XAU/USD) good for beginners?
Yes, with care. Gold trends well and is easy to follow, but it is volatile — so start with micro lots, use a stop-loss, and practise on a demo first.
How much money do I need to start trading gold?
You can open an account from $10, and a 0.10-lot trade needs only around $30 in margin at 1:100. For comfortable risk control on gold, a slightly larger balance gives your stop-loss more room.
What does it cost to trade gold?
From about $14 round-turn per standard lot on a Raw account ($8 spread + $6 commission), or about $25 on a Standard account (spread only, no commission).
What leverage can I use on gold?
Up to 1:100, meaning roughly 1% of the position value is needed as margin. Higher leverage increases both potential profit and potential loss.
When is the best time to trade gold?
The London–New York overlap (about 13:00–16:00 GMT) is the most active. Gold also moves sharply around US data like NFP, CPI and Fed decisions.
Can I trade gold on my phone?
Yes. You can trade XAU/USD from the SCapitalFX mobile app with live charts, multiple timeframes and instant execution.
Can I make money when gold falls?
Yes. Because you trade gold as a CFD, you can go short (sell) to profit from falling prices, just as you go long (buy) to profit from rising prices.
Is XAU/USD the same as spot gold?
Yes — XAU/USD is the spot price of one ounce of gold in US dollars, which is what you trade as a CFD here (no futures expiry to worry about).
Your trading app is where everything happens — placing trades, reading charts, managing risk and funding your account. A slow or clunky app costs you money. So what actually makes a good forex trading app, and how does the SCapitalFX app measure up? Here’s a practical checklist.
What to look for in a forex trading app
1. Fast, reliable execution
When you tap buy or sell, the order should fill instantly at the price you expect. Slippage and requotes eat into profits. SCapitalFX uses instant execution with no dealing desk and no requotes, so your orders go through cleanly.
2. Powerful but clear charting
You need enough tools to analyse the market without drowning in complexity. The SCapitalFX app offers 9 timeframes and 8 built-in indicators — enough for real technical analysis, presented in a clean mobile-first design.
3. A wide range of instruments
A good app lets you trade more than just a few pairs. SCapitalFX gives you 34 instruments across forex, metals, indices, energy and crypto from one account, with leverage up to 1:200.
4. Easy, low-cost funding
Funding should be quick and affordable. SCapitalFX supports crypto deposits with 50+ coins (USDT, BTC, ETH and more), so you can fund in minutes — see our crypto funding guide.
5. Low entry and transparent costs
You shouldn’t need a big balance to start. SCapitalFX accounts begin from $10, with a choice of Standard or Raw Spread pricing so you only pay for what you need.
6. A demo mode
The best apps let you practice first. A free demo account lets you learn the interface and test strategies before risking real money.
7. Security and language support
Look for secure logins and an interface in your own language. The SCapitalFX app is fully localised in 14 languages, including right-to-left support for Arabic and Farsi.
Why a mobile-first app matters
Markets move at any hour. A capable mobile app means you can manage open trades, set stop-losses and react to news from anywhere — not just when you’re at a computer. For new traders especially, having charts and your account in your pocket makes it far easier to build consistent habits.
How to get the SCapitalFX app
You can download the SCapitalFX app for your device, or use the web app straight from your browser. New to trading? Start with our beginner’s guide and practice on demo before going live.
Risk warning: Trading forex and CFDs on margin carries a high level of risk and may not be suitable for every investor. You could lose some or all of your invested capital.
Frequently asked questions
Is there a free demo on the app?
Yes. You can practice with a free demo account before trading real money.
What can I trade on the app?
All 34 SCapitalFX instruments — forex, metals, indices, energy and crypto — with leverage up to 1:200.
Can I fund the app with crypto?
Yes, with 50+ cryptocurrencies including USDT, BTC and ETH. See the funding guide.
Forex is the largest financial market in the world, with trillions of dollars changing hands every day. The good news for newcomers: the basics are simpler than they look. This beginner’s guide explains how forex trading works, the key terms you need, and exactly how to place your first trade — the right way.
What is forex trading?
Forex (foreign exchange) trading is the act of buying one currency while selling another, in the hope that the exchange rate moves in your favour. Currencies are always traded in pairs, such as EUR/USD (euro vs US dollar). If you think the euro will rise against the dollar, you buy EUR/USD; if you think it will fall, you sell it.
Beyond currencies, most brokers — including SCapitalFX — also let you trade metals (like gold), indices, energy (like oil) and crypto using the same account. In total you can trade 34 instruments at SCapitalFX.
The key terms every beginner needs
Currency pair: two currencies quoted together, e.g. GBP/USD. The first is the base, the second is the quote.
Pip: the smallest standard price move, usually the 4th decimal place (0.0001). It’s how profit and loss are measured.
Spread: the small gap between the buy (ask) and sell (bid) price. This is your main trading cost on a Standard account.
Lot: the size of your trade. A standard lot is 100,000 units; a micro lot (0.01) is 1,000 units — ideal for beginners.
Leverage: borrowed buying power that lets you control a larger position with a smaller deposit (e.g. 1:200). It magnifies both profits and losses.
Margin: the deposit required to open a leveraged position.
Going long / short: buying (long) if you expect a rise, selling (short) if you expect a fall.
How a forex trade actually works
Imagine EUR/USD is priced at 1.0850. You believe the euro will strengthen, so you buy one micro lot. If the price rises to 1.0860, that’s a 10-pip gain. On a micro lot each pip is worth about $0.10, so your profit would be roughly $1. If the price instead falls to 1.0840, you’d be down about $1. Scale the lot size up and those numbers grow — in both directions. That’s why position sizing and risk control matter so much.
What moves the forex market?
Interest rates set by central banks
Economic data such as inflation, employment and GDP
Geopolitics and global risk sentiment
Supply and demand for each currency
You don’t need to predict all of this. Most beginners do better focusing on a few pairs and a simple, repeatable strategy than trying to follow everything at once.
Choose your account type. Beginners usually start with a Standard account (from $10). As you get more active, a Raw account can lower costs — compare them in Standard vs Raw.
Practice on a demo. Learn the platform and test ideas with virtual money first.
Place your first trade. Start with a micro lot, set a stop-loss and a take-profit, and keep your risk tiny while you learn. Our $10 starter guide walks through this.
Risk management: the part that keeps you in the game
More beginners fail from poor risk control than from bad market calls. Build these habits from day one:
Risk only 1–2% of your balance per trade.
Always use a stop-loss — decide your exit before you enter.
Keep leverage modest. The ability to use 1:200 doesn’t mean you should max it out.
Have a plan for every trade: entry, stop, target, and position size.
Common beginner mistakes to avoid
Trading too big for the account size
Skipping the stop-loss
Revenge trading after a loss
Chasing every market move instead of waiting for good setups
Risking money you can’t afford to lose
Trading on your phone
You can do all of this from the SCapitalFX mobile app, with live charts, multiple timeframes and instant execution. See what to look for in a good forex trading app.
Risk warning: Trading forex and CFDs on margin carries a high level of risk and may not be suitable for every investor. You could lose some or all of your invested capital. Make sure you understand the risks and never trade with money you cannot afford to lose.
Frequently asked questions
How much money do I need to start forex trading?
At SCapitalFX you can start a Standard account from $10, so you can begin with a very small amount while you learn.
Is forex trading hard for beginners?
The mechanics are simple to learn, but trading well takes practice and discipline. Starting on a demo and using small sizes shortens the learning curve.
What is the best currency pair for beginners?
Major pairs like EUR/USD are popular with beginners because they are liquid and have tight spreads.
Can I lose more than I deposit?
Trading on leverage is risky and losses can be rapid. Use stop-losses, keep positions small, and only trade with money you can afford to lose.
