Learn how to trade with precision

Bitcoin is a cryptocurrency created in 2009, based mainly on a self-published paper by Satoshi Nakamoto. Bitcoin enables immediate payments (and micropayments) at a very low cost, while avoiding the need for central authorities and issuers.

Leverage allows traders to control a larger market position by using margin, which is only a fraction of the total trade value. For example, with 1:100 leverage, $1,000 in margin can control a $100,000 position. While leverage increases market exposure, it also amplifies both potential gains and potential losses, making risk management essential when trading with leverage on platforms like SimpleFX.

The difference between a financial instrument's bid and ask prices is known as the spread. It shows how much it costs to execute a trade and is expressed in points for other markets or pips for FX. Tighter spreads indicate higher liquidity and lower trading costs, making them a key factor when comparing brokers like SimpleFX.

Margin is the minimum capital required to open and maintain a leveraged trading position. It is expressed as a percentage of the total trade value and acts as collateral against potential losses. For example, a 1% margin requirement means you need $1,000 to control a $100,000 position. If equity falls below required levels, a margin call may occur.