This trading FAQ for beginners collects short answers to the questions we hear most often about shares, index funds, currencies, crypto and this site itself. Each answer is deliberately brief; where a topic deserves more, follow the link to the full guide. Terms you do not recognise are defined in the glossary.
If your question is about a specific firm, product or your own circumstances, we are not able to answer it; a regulated adviser or the firm itself is the right place to ask. For everything else, the answers below are a starting point.
Our main guides: stock market basics, the S&P 500, fees, choosing a broker and avoiding scams.
Reader questions
Is KyvoInvest a broker or exchange?
No. KyvoInvest is an independent information site. We do not open accounts, accept deposits, execute trades, provide signals or manage money, and nobody from KyvoInvest will contact you to offer investments. If anyone uses our name to offer you trading, recovery services or guaranteed returns, it is a scam and you should stop replying.
What is the difference between investing and trading?
Investing usually means buying assets such as shares or funds to hold for years, aiming to benefit from business growth and dividends. Trading usually means buying and selling over short periods to profit from price moves, often with leverage. The two involve very different time commitments, costs and risks, and most of our guides are written with the first in mind.
What is an index fund?
A fund that aims to match an index, such as the S&P 500, by holding the same companies in the same proportions. It offers broad diversification in a single purchase, usually for a low annual charge. Because it simply follows the index, it does not depend on a manager picking winners, and its return will be the index return minus costs.
When is the US stock market open?
The regular session on the New York Stock Exchange and Nasdaq runs from 09:30 to 16:00 New York time, Monday to Friday, excluding market holidays. Pre-market and after-hours sessions exist but are thinner, with wider spreads. Other markets keep their own hours; London, for example, trades from 08:00 to 16:30 local time.
How do dividends work?
A company's board can decide to pay part of its profits to shareholders as a cash dividend. To receive it you must own the share before the ex-dividend date. Dividends are not guaranteed and can be cut, and in most countries they are taxable unless held in a tax-advantaged account.
Why do stock prices move on news?
Prices reflect expectations about future profits. News that changes those expectations, such as earnings results, interest-rate decisions or economic data, moves prices, especially when it differs from what was forecast. A company can report rising profits and still see its shares fall if investors had expected even more.
What does a pip mean in forex?
A pip is the standard step in a currency price, 0.0001 for most pairs and 0.01 for yen pairs. On one standard lot of a pair quoted in US dollars, a pip is worth $10. Our pip calculator works it out for other pairs and sizes.
Is crypto a good investment for beginners?
We do not make recommendations. Crypto-assets are highly volatile, produce no income and are often less protected than shares held at a regulated broker. Anyone considering them should be prepared to lose the whole amount, and should understand where the coins would be held and by whom.
How do I know if a broker is legitimate?
Look the firm up on your national regulator's own register, check that the contact details match, and read the fee schedule and withdrawal terms. Treat guaranteed returns and pressure to deposit as warning signs. A firm that is hard to find on any register, or that is registered only far from where you live, deserves extra caution.
Can I practise before investing real money?
Yes. Many platforms offer demo accounts, and market simulators let you replay historical prices. Practice teaches mechanics, but it cannot reproduce the emotions of real losses. It is best used to learn how orders, stops and position sizes behave, not to prove that a strategy will make money.