Trading forex (FX) and CFDs are deemed as a “high risk investment” and it is possible to lose more than you initial investment. Understanding the risks when trading is a key part of developing your trading plan.
Before you place a live trade, ask yourself questions like;
“Do I know how to use this trading software?” Abshire-Smith offers 3 different trading platforms. If you are new to one of our platforms, then we would recommend that you open a practice trading account. Get to grips and understand how to use the trading platform, tradable instruments available, and product specifications.
“Have I traded forex or CFDs before?”You might have experience with other financial instruments (ETFs, cash equities, bonds), but familiarise yourself with the different tradable instruments and what influences the price movements. Before using real money, opening a practice trading account will allow you to see how the markets move with real-time prices.
“How much do I want to deposit into my live Abshire-Smith trading account”The amount to deposit depends on your individual circumstances and financial objectives.
“How can I reduce my risk when trading?”The financial markets can be volatile with multiple factors influencing the price of an instrument. Examples of how to reduce the risk; we would recommend that clients use stop-losses when opening trades and understand how leverage increases the risk of loss from trading.
“Does leverage increase the risk of loss?”Leverage (or trading on margin) increases the trade size that your deposit can control. The increase in trade size by leverage magnifies the returns (profit) or loss from the trade.
If you would like to open a live trading account with Abshire-Smith, complete our online application.