Trading Basics

A pip (Point In Percentage) is the smallest standard price movement in forex. For EUR/USD: 1 pip = 0.0001 = $10 per standard lot (100,000 units). Examples: EUR/USD moves from 1.0850 to 1.0851 = 1 pip move. If you have 1 lot and gain 50 pips = $500 profit. If you have 0.1 lots and gain 50 pips = $50 profit. Note: Some platforms show a 5th decimal (pipette), where 10 pipettes = 1 pip.

Stock indices track the performance of a group of stocks, like the S&P 500 (top 500 US companies) or NASDAQ (tech-focused). You trade indices as CFDs without owning individual stocks. Benefits: instant diversification, lower margin requirements, and exposure to entire markets with one trade.

Crypto CFDs let you trade cryptocurrency price movements without owning the actual coins. No wallet needed, no security risks, instant access. You can go long (buy) or short (sell) on Bitcoin, Ethereum, XRP and more with leverage up to 1:20 on ELITE accounts.

Commodity CFDs let you trade price movements of gold, oil, silver without physical delivery. Trade precious metals as safe haven assets, energy commodities for geopolitical plays, and industrial metals for economic cycles. Leverage up to 1:500 available.

Stock CFDs let you trade individual company shares like Apple, Tesla, Microsoft without owning the actual stocks. You profit from price movements up or down with leverage up to 1:20. Benefits: no stamp duty, short selling allowed, fractional shares, and trade during extended hours.

The spread is the difference between the bid (sell) price and ask (buy) price. It's your main trading cost. Example: EUR/USD bid 1.0850, ask 1.0851 = 1 pip spread. You pay the spread when entering any trade. Lower spreads = lower costs. Milton Markets offers: FLEX accounts from 1.7 pips, SMART accounts from 1.0 pips, ELITE accounts from 0.0 pips (raw spreads with $2 commission).

Gold is a safe haven asset that rises during uncertainty and USD weakness. Oil is an energy commodity driven by supply/demand, OPEC decisions, and geopolitics. Gold spreads from $0.20, oil from $0.02. Both offer 1:500 leverage but different volatility patterns.