18:25
Forex trading like me?
Forex "foreign exchange" is an acronym commonly used by general investors and speculators trading in the foreign exchange market are used to describe.
For example, the value of the US dollar weakened against the euro would be expected to imagine such a situation. In this scenario, a Forex trader selling dollars and buy euros. If the euro strengthens, the dollar has increased the purchasing power to buy. Businessman making a profit now, was to start with more than dollars could buy back.
This is similar to stock trading. A stock trader buying stocks that they believe the price will fall in the future if the price rise in the future, and believe that the stock will sell. Similarly, foreign exchange trader at the exchange rate is expected to be held in the future, if you buy a currency pair, and the exchange rate is expected to fall in the future if a currency the couple sells.
HOW DO YOU READ A QUOTE?
Because you always compare one currency to another, is quoted in the forex pairs. This may seem confusing, but it is actually very simple. For example, EUR / USD to a Euro (EUR) US Dollar (USD) is worth how much in 1.4022, shows.
WHAT IS A LOT?
A very small small tradable unit. Markets accounts a standard lot size is 1,000 units of currency. Account holders can, however, trade in different sizes, so long as the 2000, 3000, 15000, 112000, as increments of 1,000 units, etc.
WHAT IS A PIP?
A pip JPY pairs are given to four decimal places, except you, the gain or loss. This unit is most currency pairs. (100ths of a percent) in fourth place after the decimal point "pips" of inclusion, you usually see. Each point costs 1 pip movements have to be in motion. EUR / USD 1,4022 For example, if the rises to 1.4027, EUR / USD 5 pips is reached.
WHAT IS LEVERAGE/MARGIN?
As already mentioned, all trades are executed with borrowed money. This will allow you to take advantage of the leverage. Leverage 200: 1 you deposit $ 1,000 in the market by repealing the $ 5 to trade permits. This gives you the most money in your account by controlling the market in currencies can take advantage of even the smallest movements mean. On the other hand, leverage can significantly increase your losses. Any level of leverage with foreign exchange trading may not be suitable for all investors.
