I wrote a post tackling the biggest misconceptions and questions new traders have. 9 Trading FAQs and Answers Here's a short summary: Can trading replace my day job? Yes. Well… maybe. Is trading the same as gambling? No! Trading is not gambling, but it can be used to the same degree. How much money should I start trading with? If you’re learning it’s perfectly acceptable to trade with a smaller amount of money, but as you gain more experience it’s important for it to be worth your while. Does technical analysis work? Not consistently, and not predictably. How is investing different from trading? The investment horizon may be years, but is generally not smaller than a month. Trading is the opposite. How do I get started trading? Before you even make your first trade it’s important for you to understand yourself, and your relationship with risk. Will computers replace traders on Wall Street? Not yet. This is one of the most common questions that we’ve heard asked in the past decade, and it’s not as simple as it seems. Is the stock market random? Not perfectly. How do you know when to buy a stock? Choosing when to buy and when to sell as stock is difficult, and there is no universally accepted method that will guarantee positive results.

Great read. I suggest everyone reading the entire article because it tackles some of the most common problems beginner traders face.

yolivier thanks for the great feedback ! If you guys have any other questions that you want answered next, feel free to leave them here !

9 Frequently Asked Questions About Trading

denik12072002

)))))))))

xyligan77

good

MohamedAlou

Bien

Maungluv

True

elias

Is the underlying asset always Morpher tokens in the trading app? Let's say I want to go long ETH/USD, is that possible? Or is it only possible to trade ETH/Morpher Token?

ivan

elias Really cool question, because although you couldn't go long ETH/USD in the traditional sense, if we have the pair (which we do) you would be going long ETH/USD/MPH. Weird right? The whole point of Morpher is that we can virtualize any price action, so you would be trading the price of Ethereum against the U.S. Dollar using Morpher token.

elias

Thanks for the reply Ivan. So, if I go long ETH/USD/MPH on your platform and the ETH/USD price increase 10% and the USD/MPH increase 10% (Morpher lose 10% against the USD). I will end up with a net profit 0%?

elias

What will happen if I trade 10x ETH/USD/MPH? Will I have 10x exposure against both ETH/USD and USD/MPH?

FedeForex

I think you are a bit over-complicating trading.
Your balance currency (or cryptocurrency, in this case) is not involved in the trade until you think of withdrawing funds.

If you invest 1000 tokens on ETH/USD, any percentage needs to be calculated on that amount that you invested. If ETH/USD is up by 10%, you are earning 100 tokens.
If you are trading with a leverage of 10x, you are earning 1000 tokens. Simple as that.

Then, if you are planning to exchange MPH back to USD, you need to have a look at USD/MPH.

Consider that USD/MPH lost 10% during that period. To understand better, let's say that 1MPH was 1USD, now it is 0.90USD.
In the first case, you passed from 1000MPH with a value of $1000, to 1100MPH with a value of $990. You lost $10 if your plan is to immediately convert MPH back to USD.
In the second case, you started with 1000MPH with a value of $1000, to 2000MPH with a value of $1800. You won $800 (although your risk was much higher, because of the leverage).

ivan

To restate FedeForex 's example.

Let's assume 1 MPH = $1.0
You invest 1000 MPH into ETH/USD which goes up 10%.
--> You close your position earning 100 more tokens. Your 1100 MPH is now worth $1100

Now if the price of USDMPH decreases by 10%:
--> Your 1100 MPH is now worth 0.90 x 1100 = $990

On a holistic level you have a net loss of $10.

Now let's consider another scenario that could happen:
You invest 1000 MPH in ETH/USD which falls 10%.
--> Now you have 900 MPH worth $900

You've taken a loss, but if USDMPH increases 10%
--> Your 900 MPH is now worth 900 x 1.10 = $990

FedeForex

Thanks @ivan , although I think that my calculation with the result of $990 was correct.

ivan 0.90 x 1100 = $1000

I think the mistake is here 🙂

Jonasgamble

ivan Hello, I have a little Question.

If I leverage something with 10x. For example I bet 1000 Tokens. So I move 10k right?

If it goes down I can only lose the 1000 Tokens? Or can I lose more? There isnt any Margin call?

ivan

FedeForex Oops 😅

KENEVIL

I dint get email yet

ivan

With a leverage of 10 your 1,000 token position has an exposure of 10,000, that's right. If the underlying asset falls 10% your position will automatically close (since it lost 1,000 token = 10% of 10,000).

This means that you can only ever lose 100% of the position, but a losing leveraged position will not affect the rest of your account.

KyawHtat7123

Hello
What I doing?

Dsrikanth

Wen can I withdraw token? Where can I sell my coins ?

TshetanYolmo

I am having an issue. Everytime I try to trade. It shows me error right after saying your trade has been successfully placed.

Zipporol

Hi, why so high spread on apple and tesla? 7%.. it's only yesterday and today or everyday?

neeraj

Hey team, Is it possible to get some bluechips company here from Indian Stock Market (TCS, INFOSYS, RELIANCE, HDFC, KOTAK, SBI )

ivan

neeraj We will look into this as we expand our international markets support !