FOREX OVERVIEW

       START TRADING

If you are willing to enter Forex market, it is very important for you to have at least basic

knowledge over the main concepts of Forex market. Find them below.

Overview of Forex Concepts

      OPEN LIVE ACCOUNT

What are currency pairs

 

Forex trading always involves

selling one currency with the

purpose of buying another.

That's why we quote them in

pairs that show which currency is

being bought and which is being

sold. Each currency in the pair is

listed in the form of its three

letter code, which tends to be

formed of two letters that stand

for the region, and one standing

for the currency itself.

Base & quote currency

 

The first currency listed in a

forex pair is called the base currency, and the second currency

is called the quote currency. The

price of a forex pair is how much

one unit of the base currency is

worth in the quote currency.

The spread

 

The spread represents the

difference between buying and

selling price. When you open an

FX position you’ll have two

prices. If you want to open a long

position, you trade at the buy

price, which is slightly above the

market price. If you want to open

a short position, you trade at the

selling price – lightly under the

market price.

What are Pips?

 

The movement in the Forex pair

price is measured in units called

pips. A pip is usually equivalent

to a one-digit movement in the

fourth decimal place of a

currency pair.

What is leverage in forex?

 

Leverage allows you to get

exposure to large amounts of

currency without having to

invest too much capital.

A single pip is a very small unit of

movement, and while Forex pairs

tend to be very volatile they

often move in relatively minor

increments. For this reason,

Forex traders will either have to

trade large quantities known as

LOT-s or take advantage of.

What is a lot?

 

A standard lot is 100,000 units

of currency. Alternatively, you

can sometimes trade mini lots

and micro lots, worth 10,000

and 1,000 units respectively.

The benefits of leveraged trading

 

Leverage allows you to open a position without having to pay its full value upfront. When you close a leveraged

position, the profit or loss is based on the full size of the trade. While that does offer a chance of higher profits, it

also brings the risk of amplified losses; including losses that can exceed your deposits.

Past performance is not necessarily indicative of future results. All investments carry risk and all investment decisions of an

individual remain the responsibility of that individual. There is no guarantee that systems, indicators, or signals will result in

profits or that they will not result in losses. All investors are advised to fully understand all risks associated with any kind of

investing they choose to do. Hypothetical or simulated performance is not indicative of future results.

 

RISK WARNING - TRADE RESPONSIBLY: Derivatives are leveraged products that incur a high level of risk and can result in the loss of all your capital and may therefore not be suitable for all investors. You should not risk more than you are prepared to lose and before deciding to trade, please ensure you understand the risks involved, take the level of your experience into consideration and seek independent advice if necessary. We strictly do not provide trading advice. To read our full risk disclosure statement, please click here

 

 

Copyright © 2020, invest-moment.com . All Rights Reserved.