Who trades on the international Forex stock?
Here is a short list of traders that arrange transactions on the Forex market: various commercial and state banks, brokers, corporations, investors, currency stocks and private persons.
What is pip?
In the Forex terminology a pip is the least change of a currency quotation, there is no importance of where the currency quotation moves down or up. One pip is 0,0001 for the nine main currency pairs. For the pairs, where Japanese yen is one of the currencies, one pip is 0,01.
What is margin trade? What is a leverage?
Margin is a pledge , which you put for arranging a transaction, if you do not have enough your own assets. Usually margin is one-two percents from a sum of a transaction. The rest of 98-99 percents you will get from a dealer, whose services you use for the trade on the stock. This is the essence of margin trading. In the Forex terminology this is the issuance of a leverage. For example if you need to buy 10 000 US dollars for Japanese yen and your leverage is 1:10, then you have to put a pledge of 1 000 Japanese yen for arranging the transaction.
What is the difference between a stop order and trailing stop?
Trailing stop is the algorithm of managing a stop order. The functioning of the algorithm is the following.
Putting trailing stop for a certain number of pips (let it be Y), a terminal is expecting a moment when the position will go to profit on Y pips. When the moment comes, the terminal puts stop order on the distance of Y pips from the current cost of the position.
The terminal will send a command to change the stop order again, when the distance between the put stop order and the current cost becomes more than Y pips. Thus the stop order is always coming to the current cost for Y pips.
What is trading for rising and falling?
It is not easy to give a short answer for this question. If you want to understand the situation you have to lean it in details. It only can be said that the position sell is falling and the position by is rising.
What is opening of a long and short position in the stock terminology?
Opening a long position for a trader means buy of the main currency, and opening a short position means its sell. It will look like the following on an example: buying 10 000 EUR for US dollars a trader open a long position on EUR.
Learning this terminology will help you to learn the foundation of trading on the Forex market. It is very important to know the necessary terminology.
As in every other sphere of our life Forex needs some education.
Surely, you can start forex investment and get quite successful in it. But sooner or later the losses will come. This is when one might think “Why did I fail to start with a nice forex trading education?”
This does not imply that after reading even the top materials you will start closing trading positions with huge income, but this knowledge will save you from many traps. And even if you make up your mind to get the help of a managed forex account service, still you will make a much wiser decision.
And a final piece of advice – today the online technologies give you a really unique chance to choose exactly what you want at the best terms which are available on the market. Funny, but most of the people don’t use this opportunity. In real practice it means that you must use all the tools of today to get the info that you need.
Search Google or other search engines. Visit social networks and check the accounts that are relevant to your topic. Go to the niche forums and participate in the online discussion. All this will help you to build up a true vision of this market. Thus, giving you a real opportunity to make a smart and nicely balanced decision.
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