{"id":38006,"date":"2026-09-08T07:13:42","date_gmt":"2026-09-08T07:13:42","guid":{"rendered":"https:\/\/www.wisuno.com\/uk\/?page_id=38006"},"modified":"2026-09-08T07:13:44","modified_gmt":"2026-09-08T07:13:44","slug":"how-trading-works","status":"publish","type":"page","link":"https:\/\/www.wisuno.com\/uk\/learn\/how-trading-works\/","title":{"rendered":"How does trading work?"},"content":{"rendered":"\n<div id=\"wsa\">\n<div class=\"riskstrip\">Trading CFDs and forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your circumstances, knowledge and financial resources.<\/div>\n<nav class=\"subnav\" aria-label=\"Academy sections\"><div class=\"subnav-in\"><div class=\"brand\">Wisuno <span>Academy<\/span><\/div><a href=\"\/uk\/learn\/\">Learn<\/a><a class=\"is-active\" href=\"\/uk\/learn\/courses\/\">Courses<\/a><span class=\"soon\">Intermediate<\/span><span class=\"soon\">Advanced<\/span><a href=\"\/uk\/academy\/editorial-standards\/\">Editorial standards<\/a><\/div><\/nav>\n<header class=\"hero\"><div class=\"wrap\"><div class=\"hero-in\">\n<p class=\"eyebrow\">Course 1 of 5 \u00b7 Beginner \u00b7 23 min<\/p>\n<h1>How does trading work?<\/h1>\n<p>Who is on the other side of your trade, what a CFD actually is, and why a falling price is a position rather than a problem.<\/p>\n<div class=\"cta-row\"><a class=\"btn\" href=\"\/uk\/academy\/what-is-forex-trading\/\">Start course<\/a>\n<a class=\"btn btn--ghost\" href=\"\/uk\/learn\/courses\/\">All courses<\/a><\/div>\n<\/div><\/div><\/header>\n\n<section class=\"band\"><div class=\"wrap\">\n<div class=\"sec-head\"><h2>Course overview<\/h2><\/div>\n<div class=\"ov\">\n<div class=\"ov-desc\"><p class=\"ov-label\">Description<\/p><p>This course covers the mechanics underneath every trade you will ever place. We start with who is in the market and what they are doing there, because retail speculation is a small share of it and the rest of the flow explains a lot of the movement.<\/p><p>We then look at what you are actually holding. Retail forex and index positions are contracts for difference: you never own the instrument, you settle the difference in cash, and that single fact explains why selling is as ordinary as buying.<\/p><p>By the end you can say what a position is, what it costs to open, and what happens on each side when the price moves.<\/p><\/div>\n<div class=\"ov-meta\">\n<div><p class=\"ov-label\">Time<\/p><div class=\"ov-val\">23 min<\/div><\/div>\n<div><p class=\"ov-label\">Level<\/p><div class=\"ov-val\"><span class=\"lvl lvl--1\"><i><\/i><i><\/i><i><\/i><\/span> Beginner<\/div><\/div>\n<div><p class=\"ov-label\">What is in it<\/p><ul class=\"benefits\">\n<li>Short lessons, one idea each<\/li>\n<li>Worked examples with real instruments and real costs<\/li>\n<li>Every figure shown as a cost, never as a projected gain<\/li>\n<li>A quiz at the end to check what stuck<\/li>\n<li>Free, with no account required<\/li>\n<\/ul><\/div>\n<\/div><\/div><\/div><\/section>\n\n<section class=\"band band--soft\"><div class=\"wrap\">\n<div class=\"sec-head\"><h2>Lessons<\/h2><\/div>\n<div class=\"lessons\"><a class=\"lrow\" href=\"\/uk\/academy\/what-is-forex-trading\/\"><span class=\"lrow-n\">1<\/span><span class=\"lrow-t\">What Is Forex Trading? A Beginner&#8217;s Guide<\/span><span class=\"lrow-m\">9 min<\/span><\/a><a class=\"lrow\" href=\"\/uk\/academy\/what-is-a-cfd\/\"><span class=\"lrow-n\">2<\/span><span class=\"lrow-t\">What Is a CFD and How Does CFD Trading Work?<\/span><span class=\"lrow-m\">9 min<\/span><\/a><a class=\"lrow\" href=\"\/uk\/academy\/going-long-vs-going-short\/\"><span class=\"lrow-n\">3<\/span><span class=\"lrow-t\">Going Long vs Going Short<\/span><span class=\"lrow-m\">5 min<\/span><\/a><div class=\"lrow lrow--quiz\"><span class=\"lrow-n\">?<\/span><span class=\"lrow-t\">Quiz<\/span><span class=\"lrow-m\">3 questions<\/span><\/div><\/div>\n<\/div><\/section>\n\n<section class=\"band\"><div class=\"wrap narrow example\">\n<div class=\"sec-head\"><h2>Example lesson: why every forex trade has two sides<\/h2><\/div>\n<p>Every forex quote names two currencies, and you cannot hold one without giving up the other. Buying EUR\/USD is not \u201cbuying euros\u201d in isolation \u2014 it is buying euros and selling dollars in the same action.<\/p><p>That is why there is no cash position inside a pair. You are long one currency and short the other at all times, and the price is simply how many units of the second currency it takes to buy one unit of the first.<\/p>\n<p class=\"pull\">There is no neutral position inside a currency pair. You are always long one side and short the other.<\/p>\n<div class=\"figure\"><table><caption>Illustrative figures. Pip value depends on position size, not on leverage.<\/caption><thead><tr><th>EUR\/USD at 1.0850<\/th><th><\/th><\/tr><\/thead><tbody><tr><td>You buy 0.10 lots<\/td><td>10,000 euros of exposure<\/td><\/tr><tr><td>What you are long<\/td><td>Euros<\/td><\/tr><tr><td>What you are short<\/td><td>US dollars<\/td><\/tr><tr><td>One pip is worth<\/td><td>about $1<\/td><\/tr><\/tbody><\/table><\/div>\n<\/div><\/section>\n\n<section class=\"band band--tint\"><div class=\"wrap narrow\">\n<div class=\"sec-head\"><h2>Check your understanding<\/h2><p>3 questions. Nothing is recorded and nothing is sent anywhere \u2014 the answers are checked in your browser.<\/p><\/div>\n<ol class=\"quiz\" id=\"q1\"><li class=\"qq\" data-a=\"1\"><p class=\"qt\">You buy EUR\/USD. What are you short?<\/p><div class=\"qo\"><label><input type=\"radio\" name=\"q1_0\" value=\"0\"> Nothing \u2014 you only hold euros<\/label><label><input type=\"radio\" name=\"q1_0\" value=\"1\"> US dollars<\/label><label><input type=\"radio\" name=\"q1_0\" value=\"2\"> The euro<\/label><label><input type=\"radio\" name=\"q1_0\" value=\"3\"> The spread<\/label><\/div><p class=\"qf\" hidden>Buying a pair means buying the base currency and selling the quote currency in the same action.<\/p><\/li><li class=\"qq\" data-a=\"2\"><p class=\"qt\">When you hold a CFD on gold, what do you own?<\/p><div class=\"qo\"><label><input type=\"radio\" name=\"q1_1\" value=\"0\"> 100 ounces of gold<\/label><label><input type=\"radio\" name=\"q1_1\" value=\"1\"> A claim on gold held by the broker<\/label><label><input type=\"radio\" name=\"q1_1\" value=\"2\"> Nothing \u2014 a contract to settle the price difference in cash<\/label><label><input type=\"radio\" name=\"q1_1\" value=\"3\"> A share in a gold miner<\/label><\/div><p class=\"qf\" hidden>A CFD settles the difference between the opening and closing price in cash. Nothing is delivered or stored.<\/p><\/li><li class=\"qq\" data-a=\"1\"><p class=\"qt\">Why is opening a short as simple as opening a long?<\/p><div class=\"qo\"><label><input type=\"radio\" name=\"q1_2\" value=\"0\"> Because the broker lends you the asset<\/label><label><input type=\"radio\" name=\"q1_2\" value=\"1\"> Because nothing is owned, so nothing has to be borrowed<\/label><label><input type=\"radio\" name=\"q1_2\" value=\"2\"> Because shorts are smaller positions<\/label><label><input type=\"radio\" name=\"q1_2\" value=\"3\"> Because shorts have no spread<\/label><\/div><p class=\"qf\" hidden>You never hold the instrument, so a sell order needs no borrowing and is placed exactly like a buy.<\/p><\/li><\/ol>\n<div class=\"cta-row\" style=\"margin-top:26px\"><button class=\"btn\" type=\"button\" data-quiz=\"q1\">Check answers<\/button><\/div>\n<p class=\"qscore\" id=\"q1_s\" hidden><\/p>\n<\/div><\/section>\n\n<section class=\"band band--ink\"><div class=\"wrap\">\n<div class=\"sec-head\"><h2>Practise it before it costs anything<\/h2>\n<p>A demo account runs the same platform on the same live prices, with nothing at stake.<\/p><\/div>\n<div class=\"cta-row\"><a class=\"btn\" href=\"\/uk\/demo-trading-account\/\">Open a demo account<\/a><\/div>\n<\/div><\/section>\n<footer class=\"wrap\"><div class=\"disclosure\"><ul class=\"licences\"><li>CMA \u00b7 United Arab Emirates<\/li><li>FSC \u00b7 Mauritius<\/li><li>CySEC \u00b7 Cyprus<\/li><li>FSA \u00b7 Seychelles<\/li><\/ul><p><strong>Trading CFDs and forex involves substantial risk of loss and is not suitable for all investors.<\/strong> Past performance is not indicative of future results. You should carefully consider whether trading is appropriate for you in light of your circumstances, knowledge and financial resources.<\/p><p>The Wisuno Academy is educational. Nothing in it is investment advice, a recommendation, or an opinion on whether trading suits you. Written and reviewed by the Wisuno research desk \u2014 <a href=\"\/uk\/academy\/editorial-standards\/\">editorial standards<\/a>.<\/p><\/div><\/footer>\n<\/div>\n<script>\ndocument.addEventListener('click',function(e){\n var b=e.target.closest('[data-quiz]'); if(!b) return;\n var box=document.getElementById(b.getAttribute('data-quiz')); if(!box) return;\n var qs=box.querySelectorAll('.qq'), right=0;\n qs.forEach(function(q){\n  var sel=q.querySelector('input:checked');\n  var ok=sel&&sel.value===q.getAttribute('data-a');\n  q.classList.remove('is-right','is-wrong');\n  q.classList.add(ok?'is-right':'is-wrong');\n  q.querySelector('.qf').hidden=false;\n  if(ok)right++;\n });\n var s=document.getElementById(b.getAttribute('data-quiz')+'_s');\n if(s){s.hidden=false;s.textContent=right+' of '+qs.length+' correct.';}\n},false);\n<\/script>\n","protected":false},"excerpt":{"rendered":"<p>Trading CFDs and forex involves substantial risk of loss and is not suitable for all investors. You should carefully consider whether trading is appropriate for you in light of your circumstances, knowledge and financial resources. Wisuno Academy LearnCoursesIntermediateAdvancedEditorial standards Course 1 of 5 \u00b7 Beginner \u00b7 23 min How does trading work? Who is on [&hellip;]<\/p>\n","protected":false},"author":7,"featured_media":0,"parent":37999,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"footnotes":""},"class_list":["post-38006","page","type-page","status-publish","hentry"],"lang":"en","translations":{"en":38006},"pll_sync_post":[],"_links":{"self":[{"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/pages\/38006","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/users\/7"}],"replies":[{"embeddable":true,"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/comments?post=38006"}],"version-history":[{"count":1,"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/pages\/38006\/revisions"}],"predecessor-version":[{"id":38007,"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/pages\/38006\/revisions\/38007"}],"up":[{"embeddable":true,"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/pages\/37999"}],"wp:attachment":[{"href":"https:\/\/www.wisuno.com\/uk\/wp-json\/wp\/v2\/media?parent=38006"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}