This trading FAQ for beginners gathers quick answers across every topic on the site. If your question is not here, the glossary may help, or you can suggest a new question through the contact page.
How to use these answers
Every answer below is general information, not advice for your situation. Where a rule differs by country, we say so. For worked numbers, the four calculators, for pips, position size, margin and crypto profit, show the formulas behind each result.
Where to go for more depth
For a single topic, go straight to its guide: crypto, USDT, Bitcoin, forex or stocks. For costs, read trading fees explained; for safety, ten checks before trusting a provider and scam warning signs. If you are comparing markets, start with how forex, stock and crypto markets differ.
How the answers are written
Each answer is kept to a few sentences so it can be read on a phone in seconds. Where a figure is given, it is either a published rule, which we name on the relevant guide, or an illustration that you can recalculate with our tools. We do not give personal recommendations, and nothing here tells you whether to buy, sell or hold anything.
A note on rules
Several answers mention limits set by regulators, such as leverage caps. These apply to retail clients of firms authorised in the country named, and they change from time to time. Always check the current rules where you live, and remember that a firm based elsewhere may not follow them at all.
Quick follow-ups
Is LumexTrader an exchange or broker?
No. LumexTrader is an information website only. You cannot open an account, deposit, buy crypto or trade here, and we do not manage money or send signals. Anyone offering those things in our name is not connected to us. If you need a regulated provider, you will have to find and check one yourself; our guide to choosing a broker explains how.
What is the simplest way to understand crypto?
Think of a blockchain as a shared public record of who owns what, and a private key as the password that moves coins. Everything else, from exchanges to stablecoins, builds on those two ideas, and our guide on how crypto works explains the rest step by step.
Is USDT always worth one dollar?
It aims to be and usually trades very close to $1, but it is a token issued by a company, backed by reserves the company reports. It has slipped below $1 in stressed periods and is not a bank deposit. Rules on it also differ by region: licensed platforms in the EU have restricted it for EU customers.
Which USDT network should I choose?
The same network the receiving address is on. Tron (TRC20) addresses start with T; Ethereum (ERC20) addresses start with 0x. Sending on the wrong network can lose the funds, so send a small test amount first and check the network name, not just the first characters of the address.
What happens at a Bitcoin halving?
The reward for mining a block is cut in half, slowing the creation of new bitcoin. The last halving, in April 2024, cut it to 3.125 BTC; the next is expected around 2028. The date is known roughly years in advance; the effect on the price is not.
How much leverage can a beginner use?
In the UK and EU, retail limits are 30:1 on major currency pairs, 20:1 on gold and major indices, 5:1 on shares and 2:1 on crypto CFDs. Lower leverage than the maximum is usually wiser, because leverage decides how fast a loss grows. Firms outside these regimes may offer far more, which is a warning sign rather than an advantage.
When are the forex and stock markets open?
Forex trades from Sunday 17:00 to Friday 17:00 New York time. Stock exchanges have weekday sessions, such as 09:30 to 16:00 in New York and 08:00 to 16:30 in London. Crypto trades nonstop, including weekends and holidays, so it can move while everything else is shut.
What fees should I expect when trading?
Spreads on every trade, possibly commissions, overnight financing on leveraged positions, and for crypto, trading fees on both sides and network fees on withdrawals. Totals matter more than headline rates: add up every cost of a typical round trip at your normal size before comparing providers.
How can I tell if a trading platform is a scam?
Warning signs include unsolicited contact, promised steady returns, pressure to deposit quickly, and fees demanded before withdrawals. Check the firm on the regulator's own register, using the contact details listed there rather than the ones you were given.
Do you recommend any platforms, coins or shares?
No. We do not rank or recommend providers or investments, and we are not paid by any. We explain how things work so you can make your own checks.