CFD (Contract for Difference) trading is a financial derivative that allows traders to speculate on the price movements of various assets, such as stocks, indices, commodities, forex, and cryptocurrencies, without owning the underlying asset. When trading CFDs, you agree to exchange the difference in the price of an asset from when the trade is opened to when it is closed.

At MakeCapital, CFD trading provides access to a wide range of global markets with the flexibility to trade on both rising and falling prices. This means you can:

Go long (buy) if you expect prices to rise.

Go short (sell) if you anticipate prices to fall.

CFD trading on MakeCapital also offers leverage, allowing you to control a larger position with a smaller deposit. However, it's essential to use risk management tools, such as stop-loss orders, as leverage can magnify both gains and losses.

CFD trading offers several advantages, making it a popular choice for traders. Here are some benefits:

- Leverage: CFDs allow you to trade larger positions with a smaller initial investment. For example, at MakeCapital, you can access leverage ratios tailored to your trading experience and risk tolerance.
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- Market Diversity: Trade a variety of asset classes, including stocks, commodities, forex, indices, and cryptocurrencies, all from a single platform.
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- Profit from Both Rising and Falling Markets: With CFDs, you can take advantage of market movements in any direction, maximizing opportunities regardless of market conditions.
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- No Ownership of the Underlying Asset: This eliminates additional costs, such as storage fees for physical commodities or administrative fees for owning stocks.
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- 24/5 Trading Access: Many CFD markets, such as forex, are open around the clock, providing flexibility for traders across different time zones.
With MakeCapital’s user-friendly interface and advanced trading tools, you can harness these benefits while managing your risks effectively.

What is margin in CFD trading, and how does it affect my trades?
Margin is the amount of capital required to open and maintain a leveraged CFD position. It is expressed as a percentage of the total trade value.

For example:
If MakeCapital requires a margin of 5% to trade gold CFDs and you want to open a $10,000 position, you need to deposit $500 as margin.

Types of Margin:
Initial Margin: The amount required to open a position.
Maintenance Margin: The amount needed to keep the position open. If your account balance falls below a certain level, you may face a margin call.

When trading CFDs on MakeCapital, the costs you may encounter include:

- Spreads: The difference between the bid and ask prices. Tight spreads on MakeCapital ensure competitive trading costs.
- Overnight Fees (Swap): A charge for holding positions overnight, based on the interest rate differential of the underlying asset.
- Commission: For certain asset classes, a small commission fee may apply. MakeCapital offers transparent pricing to help you understand these charges upfront.
- Currency Conversion Fees: If you trade assets in a currency different from your account currency, a conversion fee may apply.

Understanding these costs is essential for effective trade planning and profitability.

Trading Platform refers to the platforms that traders use to access financial markets, analyze price movements, and execute trades. Two of the most popular and widely used trading software in the industry are MetaTrader 4 (MT4) and MetaTrader 5 (MT5). These platforms are known for their robust features, user-friendly interface, and advanced tools that cater to both beginners and experienced traders.

MakeCapital offers both MT4 and MT5 platforms to cater to the diverse needs of our traders. Here’s what you can expect:
• Access to Global Markets: Trade forex, commodities, metals,indices, and cryptocurrencies.
• Leverage and Risk Management: Use customizable leverage and advanced risk management tools.
• Customizable Experience: Tailor your workspace with custom indicators and Expert Advisors.
• Mobile Trading: Trade on the go with MakeCapital’s MT4/MT5 mobile version.

The choice between MetaTrader 4 (MT4) and MetaTrader 5 (MT5) depends on your trading goals:

Choose MT4 if you primarily trade forex, prefer a simpler interface, or are new to trading. MT4 is user-friendly, forex-focused, and supports automated trading through Expert Advisors (EAs).
Choose MT5 if you trade across multiple asset classes, require advanced analysis tools, or use complex trading strategies. MT5 offers more timeframes, order types, and integrated features like an economic calendar and market depth.

At Make Capital, both platforms are available to suit your needs. Use our demo accounts to explore each platform and determine which aligns with your trading style.

A Pip (Percentage in Point) is the smallest price movement in a currency pair or other financial instrument. In most forex pairs, it is the fourth decimal place (e.g., 0.0001). For pairs involving the Japanese Yen, a pip is the second decimal place (e.g., 0.01).

For example:
If EUR/USD moves from 1.1000 to 1.1001, that’s a 1-pip movement.
If USD/JPY moves from 110.00 to 110.01, that’s also a 1-pip movement.

Understanding pips is essential for calculating potential profits or losses in forex trading.

A lot in trading refers to the standardized size of a trade. At Make Capital, we exclusively offer standard lots, which represent 100,000 units of the base currency in a currency pair.

Leverage allows you to control a larger trading position with a smaller amount of capital. It is expressed as a ratio, such as 10:1 or 100:1. For example, with 100:1 leverage, you can control a $100,000 trade with just $1,000 in your account.

Example:
Without leverage: To trade $10,000 of EUR/USD, you need $10,000.
With 10:1 leverage: You need only $1,000 as margin to control the same trade.

While leverage amplifies potential profits, it also increases the risk of significant losses. At MakeCapital, we offer customizable leverage options and tools to help you manage these risks.

A trading strategy is a systematic plan that defines how you will identify trading opportunities, enter and exit trades, and manage risk. Common strategies include:
•Scalping: Short-term trades for small, frequent gains.
•Swing Trading: Holding trades for days or weeks to capture market swings.
•Trend Following: Trading in the direction of the prevailing market trend.

The bid price is the highest price a buyer is willing to pay for an asset, while the ask price is the lowest price a seller is willing to accept.

Example:EUR/USD: Bid = 1.1000, Ask = 1.1002
Spread = 2 pips

The bid-ask price determines your entry and exit costs. MakeCapital ensures transparent pricing with competitive bid-ask spreads across all markets.

Slippage occurs when a trade is executed at a different price than expected, often due to market volatility or low liquidity. It can result in either a better or worse price than anticipated.

Example:You place a buy order for EUR/USD at 1.1000, but due to rapid market movement, it executes at 1.1003.

Make Capital minimizes slippage by offering fast trade execution and advanced order types, such as limit orders, to control your entry and exit prices.