Instruments and markets

Stocks, forex, crypto, futures, and options each offer a different combination of horizon, cost, and risk. The most important distinction is not the asset class itself but the contract: a stock in a brokerage account is an asset in custody, while a CFD is a claim against the broker. Pick one class at the start and establish who your counterparty is before calculating anything else.

Asset classes at a glance

You do not need to know every class at once. The first months should focus on one class, one liquid instrument, and one setup. If you skip the basics, return to the lesson What is trading first. Within crypto, Bitcoin and Ethereum differ in role and entry cost — the lesson Bitcoin and Ethereum covers those differences.

Who is your counterparty — the most important distinction

Most beginners compare asset classes by volatility. That comparison is secondary. The first question is: what exactly is the line item on your account, and who is the other side of the contract?

You do not need every legal detail from this section. One point is not negotiable: buying shares of X and buying a CFD on X are two different contracts, with a different counterparty, different settlement, and different risk if something goes wrong on the other side.

CFD, spot, and the real instrument

In many jurisdictions, retail traders use CFDs, which are derivative instruments offered by a broker that tracks the price of the underlying asset. That is not the same as buying shares in a brokerage account or a futures contract on an exchange such as CME or Eurex.

Educational example: buying 10 shares of company X on a regulated exchange gives you ownership. Buying a CFD on the same company gives you a price exposure settled with the broker; you do not hold the paper in custody in the usual retail sense.

Always check:

• whether the broker is supervised by a credible regulator,
• what the costs are, including spread, commission, and overnight financing,
• whether negative balance protection applies to retail clients,
• how leverage is disclosed for retail versus professional status.

Before you place your first order, learn the order types, including market, limit, and stop orders.

Cost map — complete it before your first live trade

Every class has a different cost structure, and most costs are not visible on the chart. Before you claim you understand an instrument, complete this table for that class:

Two rows deserve special attention because they are most often skipped:

• Currency conversion — if you deposit in one currency and trade an instrument quoted in another, every conversion has a cost. On small accounts and frequent trading, this can be larger than commission.
• Overnight cost — when positions are held across days, holding cost stops being a detail. For some pairs and instruments, swap can eat the expected profit.

Where beginners usually start

1. Brokerage account — stocks and ETFs for longer horizon and swing strategies.
2. Forex or CFD broker — currencies, indices, sometimes commodities.
3. Crypto exchange — spot or perpetual futures, with caution on leverage.

Popular brand names in advertising change their offer frequently. Compare current cost disclosures, not banners. This course does not recommend any specific broker. If you want a ranked list with explicit methodology, see the broker ranking page; it includes criteria disclosure and affiliate link notices.

Tax context

Capital gains tax rules differ by jurisdiction and account type. The key point is that the platform profit is not the same as the net amount you keep. Tax treatment can affect whether a strategy is worthwhile after costs. Tax enters expectancy in the real world: net profit is not the same as platform profit. Check current rules before your first live trade, and consider this part of the instrument choice rather than an afterthought. The lesson Taxes on investing in Poland breaks down the step-by-step rules.

The same capital in different classes

The 1 per cent risk rule works identically in every class — what changes is how wide the stop must be and how many units fit into the same risk budget.

When a class says do not trade yet

1. You cannot complete the cost map — at least one row is missing. That means you do not know what you pay.
2. You do not know who your counterparty is — you do not know whether you hold an asset or a claim.
3. The session hours do not fit your day — a playbook based on a session you cannot observe is a plan on paper only.
4. You chose the class because everyone is talking about it — hype is not a criterion for matching your time and volatility tolerance.

30-day protocol for one class

Cost as a per cent of R is the number most people skip. If average round-turn cost is 20 per cent of your R, you need expectancy before costs greater than 0.2R just to break even. That is a hard arithmetic limit, not an opinion.

Common mistakes in instrument selection

• Choosing an asset class based on hype rather than fit with available time and volatility tolerance.
• Skipping counterparty and custody structure because the chart looks familiar.
• Comparing instruments by volatility alone, ignoring cost, leverage, and settlement.
• Starting with several classes at once instead of mastering one instrument and one setup.

Exercise

Choose one class for 30 days. Record in a sheet: (1) the instrument, (2) CFD or a brokerage account, (3) the broker’s supervision from the official website, (4) three costs: spread and commission, overnight or swap, currency conversion, (5) who the counterparty is. Without opening a position — only the cost map and the counterparty.

Measurable exercise

Choose one demo instrument. Record: capital, 1 per cent risk in USD, distance to invalidation, the resulting size, and whether you end the session after a −2R limit. One row in a sheet beats three hunches from a chat.

Common questions

Are a CFD and a futures contract the same thing?

No. Futures are a standardized exchange contract with an expiry date, settled through a clearinghouse, with its own margin model. A CFD is usually an OTC product at a broker, where your counterparty is the broker.

Which class should I start with in Poland?

The one whose costs and session you understand: many people start with a liquid ETF or stock in a brokerage account or a single FX pair on a demo CFD account. Not with five markets at once.

Why is buying shares and buying a CFD on shares not the same?

Because they are different contracts. With shares you hold an asset in custody and a claim on specific securities. With a CFD you hold a contractual claim against the broker, and what happens to it if the other side runs into trouble depends on fund segregation and local law.

Do I need to know the capital gains tax before my first trade?

You do not need to know every relief, but know two things: net profit can be lower than the PnL on the platform, and the filing obligation depends on the instrument. Work this out for your account type before you start.