The term Forex refers to the foreign currency market on which currency pairs are traded. There are two currencies in the currency pair, and they are divided into "basic" and "denominational". The base currency is a medium of trade and is always shown on the left. We buy or sell the base currency for the denomination currency. This is the market with the largest liquidity in the world. The most traded currency pairs in the world include, for example, EUR/USD, GBP/USD, USD/JPY, USD/CAD, USD/CHF or AUD/USD, i.e. pairs from the "majors" category.

It is trading in the foreign currency market with exotic currency pairs. The currency pair includes, on the one hand, the main menu (USD, GBP, EUR ...) and, on the other hand, the exotic currency (RUB, TRY, SEK ...). The market for exotic currencies carries increased risk in the form of increased acquisition costs, volatility (the degree to which the value of an asset fluctuates, or the rate of return over a period of time) or liquidity.

The term CFD is based on the words Contract for difference. It is a contract between two entities, typically referred to as the "seller" and the "buyer“, with the buyer committing to pay the difference in the value of the contract at the time of purchase and at the time of sale. If the value of the contract at the time of sale is lower than the purchase price, then the buyer pays the seller. If the selling price is higher than it was at the time of purchase, then the seller pays the buyer. CFD allows the investor not only to buy, but also to speculate on a drop in price. This way of trading has spread in recent years to retail investors, allowing them to trade without having to own any securities themselves. The subject of trade is usually financial instruments: stocks, commodity futures contracts and exchangeable trading funds (ETFs).

If you trade CFDs, there is a possibility to use the so-called leverage effect and thus multiply your trading volume. The leverage effect means that a required initial capital is lower than the entire value of the transaction. Investors may thus trade with the amount bigger than the account balance. It should be borne in mind that leveraging increases the potential profit as well as the loss.

According to the applicable legislation ProfitLevel and any European broker can offer retail investors a maximum leverage of 1:30 (varies by instrument). At the same time, the broker must take steps to prevent a negative balance in your trading account. ESMA's objective is to protect the public interest by contributing to the stability and efficiency of the financial system. 

By purchasing a share of the company, you become a shareholder. Ownership of the company's shares acquires the right to participate in the distribution of the company's profit in the form of dividends. At the same time, you acquire a voting right, the weight of which depends on the number of shares owned. If the value of the shares increases, you get a profit, on the contrary, if it falls - you get a loss. In the event that the company goes bankrupt, you have the right to a liquidation balance.

Since you do not buy the underlying asset in CFD contracts but speculate on the difference between the purchase and sale price, the holder of CFD shares does not have the rights of shareholders, as i.e. the holders of physical shares. 

CFD contracts allow you to trade in various types of commodities - from agricultural, to energy, to precious metals, without having to physically own them.

By investing in CFD indices, investors and traders diversify their portfolios. When investing in indices, you invest in the value of companies that are in the selected index.

It represents the amount of funds that the trader must hold in his account in order to complete the planned trade. In essence, it is the security of an open trading position, which is blocked in the trading account until the position is closed. After closing the deal, these finances are unlocked again and can be manipulated arbitrarily. The maximum margin is limited by the type of financial instrument traded and the size of the leverage. In the event of a drop in capital below 50 percent of the collateral, the position is automatically closed. 

The word spread refers to the difference between the price of Bid and Ask. The spread (or most of it) is the broker's profit. If you buy and sell at one point, you will lose an amount equal to the difference between the Bid and Ask price, i.e. the spread. This difference was withheld by the broker as a commission for mediation the trade.

Lot means the standardized volume of a financial instrument traded on a given market. The quantity traded is not given in the number of pieces (for example, shares), but in lots. For each instrument in each market, it is determined exactly what volume represents 1 lot. This volume designation is used primarily to prevent manipulation of large numbers.