This trading FAQ for beginners gathers the questions that come up again and again, from what a pip is to whether LyvexTrade can hold your money (it cannot). Answers are kept brief and general. For the full reasoning behind each one, follow the lesson named in the answer, and look up unfamiliar words in the glossary.
The questions are roughly grouped: first what this site is, then forex and gold, then shares and crypto, and finally staying safe. If you are completely new, the most useful single step is to read how the main markets differ and then the forex lesson, using the calculators with made-up numbers as you go.
We cannot answer questions about your own situation, such as whether you personally should invest, how much, or with whom. Those depend on your finances, goals and local rules, and are a matter for a regulated financial adviser in your country.
Beginner questions
Is LyvexTrade a broker or an exchange?
No. LyvexTrade is an independent education website. We do not open accounts, accept deposits, execute trades, hold crypto or run apps, chat groups or signal services. Nobody from LyvexTrade will contact you with an investment offer. If anyone uses our name to offer those things, they are not connected to us and are very likely attempting fraud.
What is forex trading, in one sentence?
It is buying one currency while selling another, hoping the exchange rate moves in your favour, usually through a leveraged product such as a CFD rather than by holding the currency itself. The forex lesson walks through quotes, bid and ask prices, pips, lots and the costs of holding a position.
How much is one pip worth?
On a pair quoted in US dollars, such as EUR/USD or GBP/USD, one pip on a standard lot of 100,000 units is worth $10, on a mini lot $1 and on a micro lot 10 cents. For yen pairs and crosses the dollar value depends on the exchange rate, and the pip calculator works it out.
What does 30:1 leverage mean?
Every $1 of margin controls $30 of position. A 1% price move therefore changes the value of your margin by 30%, and a move of a little over 3% against you can wipe it out. UK and EU rules cap retail leverage at 30:1 on major currency pairs and lower on everything else.
Can I lose more than I deposit?
It depends on where you live and the product. Retail CFD clients in the UK and EU have negative balance protection, which limits losses to the money in the account, and positions are closed when the margin level reaches 50%. That protection does not exist everywhere, so read the provider's terms.
Is gold traded like a currency?
Often, yes. Gold is quoted as XAU/USD in dollars per troy ounce and many forex providers offer it as a CFD, commonly in lots of 100 ounces. The same pip, margin and position-size arithmetic applies, although gold's lot size and price step differ from currency pairs.
Is USDT the same as a US dollar?
No. USDT is a token issued by Tether that aims to be worth one dollar and is backed by reserves the company reports. It has no government deposit guarantee, can trade slightly above or below one dollar, and exists on several blockchains, so sending it on the wrong network can lose it.
How do I know whether a broker is genuine?
Look it up yourself on your own regulator's public register, check that the legal entity named in the account terms matches the register entry, and use only the website and phone details shown there. Our ten-point checklist on choosing a broker covers client money, costs, withdrawals and warning signs.
Someone online offered to trade for me. Is that safe?
Treat it as a probable scam. Unsolicited offers to manage your trading, share signals or introduce you to a special platform, especially when payment is requested in crypto, are one of the most common routes into investment fraud. Stop replying and read our guide to spotting trading scams.
Where do I start if I know nothing?
Start with how the main markets differ, then the forex lesson, then the lesson on costs. Work through the examples with the calculators until you can reproduce them with your own numbers. Only after that is it worth thinking about whether trading or investing suits you at all.