A CFD (contract for difference) is a deal made between a trader and a stockbroker that begins with the trader taking a view about which way a particular stock will move. If the trader feels strongly that the stock will take off, he or she will buy it. Conversely, the trader would sell if he or she believes the price is on the verge of a tumble.

The most important thing to remember when dealing in CFDs is that you don’t actually own the stock. You are never purchasing or selling shares in your targeted company. Making a profit from trading in CFDs stems from correctly forecasting the direction a stock takes and closing the contract with your broker while the price is still in your favor.

CFDs can also be traded in commodities and indices, but this article looks at the specifics around trading equities (or stocks).

You should look for brokers who are authorized and regulated by the Financial Conduct Authority (FCA). Today, there are many scams on CFD trading websites, and very often these sites have regulations that are not very rigorous, or they are not regulated at all. For instance, with the European passport, any financial company registered in one of the countries within the European Union has the right to offer brokerage services in other countries without the need for additional agreements.

The FCA is one of the strongest European authorities in regulation, and every broker under their compliance has that certification displayed at the forefront of their website.

If you are looking for the best Forex brokers online, a professional-looking website does not guarantee that the broker is a trusted one.

You will often come across the terms pip and point in financial markets. Let us clarify the relationship between these terms and their usage in Exness.

• Definition

• Pip vs Point

• Pip Size

Definition

A pip, or “percentage in point”, is the basic unit of measurement of price differences, while a point is the minimum amount of price change.

For example,

• The difference between 1.23234 and 1.23244 is 1 Pip.

• The difference between 1.23234 and 1.23237 is 3 Points.

Pip vs point

The formula used to define the relationship between these two terms is:

1 pip = 10 points

Thus a point is 1/10th of a pip.

Pip Size

A pip size is a number that indicates the placement of the pip in a price, which for most currency pairs is a standard value of 0.0001.

For example, the pip size for EURUSD is 0.0001. This means that if we look at the price of EURUSD at any given point in time, the 4th place after the decimal point is the pip. This means the point is the 5th place.

There are currency pairs that have a pip size of 0.01, for example XAUUSD. This means that for XAUUSD, the pip is the 2nd place after the decimal point, and the point is the 3rd place.

The table below lists the pip sizes for trading instruments with different price formats.

Pip size is a very important tool in various calculations, the most common one being spread. When in doubt, we provide a handy Investment Calculator to help find out the pip size of any instrument on offer, or you’re welcome to read more about how to use the Investment Calculator before you get started.

Forex brokers will quote you two different prices for a currency pair: the bid and ask price. The “bid” is the price at which you can SELL the base currency. The “ask” is the price at which you can BUY the base currency. The difference between these two prices is known as the spread.Also known as the “bid/ask spread“. The spread is how “no commission” brokers make their money.

This spread is the fee for providing transaction immediacy. This is why the terms “transaction cost” and “bid-ask spread” are used interchangeably.

Instead of charging a separate fee for making a trade, the cost is built into the buy and sell price of the currency pair you want to trade.

At Exness, they offer clients the ability to trade various instruments with dynamic spreads. Detailed information on instruments can be found here. These specifications indicate the average spread from the previous trading day, since the maximum spread cannot be determined as the spread is affected by market conditions. Average spread is an approximate estimation of the spread of an instrument (in pips). It is calculated by studying the spread trends of an instrument over a period of time.

If you would like to view the exact spread of an instrument live, follow these steps to enable the Spread column in your preferred terminal.

The most important factors affecting the spread of an instrument are:

• Market volatility
• New releases
• Unexpected economic events
• Market opening or closing

In terms of spreads this is not an income for traders but it is the source of revenue for brokers and their partners or Introducing Brokers (IB).

Earn Spread is an IB and we receive IB commission from the broker for each trade that is made by the trader. Earn Spread is sharing their spread revenue to the traders under their portfolio as a focus to encourage a community of independent traders to avoid financial scams and risk of losing money by trusting a 3rd party individual or company.

This is an opportunity for each trader to learn and earn with collaborative efforts by joining the School of Global Trading by educating him/herself to be a professional trader with a global mindset.

We are the one and only IB that is sharing our 100% commission with traders who registered under our portfolio in Sri Lanka & Maldives. Further, we are the only brilliant partner in Sri Lanka & Maldives of the world renown broker “EXNESS”. Brilliant Partner Commission is the highest paid commission IB in Exness. 

We are maintaining a 2,000,000,000$ above trading volume on a monthly basis with our global client portfolio and it is the minimum requirement for an IB to be a Brilliant Partner with Exness Broker. 

Not only that, if any IB is willing to provide the same service that Earn Spread is facilitating then they can start as a standard partner level with Exness. If a trader registered under Standard Partner level IB then their Rebate commission will be 50% less than Brilliant Partner commission.

Earn Spread transfers the rebate commission on a daily basis to their registered traders according to their closed trades in Exness Platform. You can withdraw the funds in multiple options given by Exness platform.

Exness is a Top Trading Broker with 15 years of establishment and with a strong presence in many parts of the world. Exness is one of the most trustable CFD brokers in the world. Please click for more information

No, we don’t offer custom trading signals of any kind. However the various trading terminals that we support do provide the ability to use trading signals.

100% It’s a BIG NO. Earn Spread does not charge any fee or any other charges from any partners and this is a Non Profit Community to support ANTI FRAUD & SCAM in Sri Lanka. All our services are 100% FREE for our registered traders.