WHAT IS FOREX?
Forex is term that explains the terminology of exchange of foreign currencies over counter market. Forex trading is exchange of one country's currency against another country's currency. It is one the most famous type of financial markets. Forex market is a global electronic network of banks, financial institutions, brokers and individual Forex traders, all involved in buying and selling of currencies. However, Forex market is the world's largest and most liquid financial market with daily trading volume of about 5 trillion dollars.
WHAT IS TRADED ON FOREX?
Forex trading is a buying and selling of one country's currency against another country's currency through involvement of financial institutions.
WHICH CURRENCIES ARE TRADED IN FOREX?
Forex is exchange of foreign currencies and almost all countries' currencies are traded in Forex against one or another pair.
WHICH ARE MAJOR & MINOR CURRENCIES?
There are seven major currencies that are EUR/USD, USD/CHF, GBP/USD, USD/JPY, AUD/USD, NZD/USD, and USD/CAD. However, all other countries currencies are traded in one or another pair against these seven major currencies.
HOW CURRENCIES ARE TRADED IN FOREX?
Currencies in Forex are traded in pairs through involvement of Banks, Brokers or dealers. the Banks or Dealers involved in currencies trade take their commissions as their profit and facilitate the traders.
HOW TO READ FOREX QUOTE?
Each country has three letters symbol: as USD, which is used in Forex quotes. the First two letters identify the name of that country and third letter the name of that country's currency. As, USD ( US=American, and D= Dollar) Hence, USD mean American dollar.
WHAT IS BID and ASK Price?
Bid is a price that a buyer is willing to pay for buying the currency. While ask is a price that seller of currency asks for sale of his currency.
HOW TO CALCULATE PROFIT/LOSS?
A trader makes profit when his opening trade goes positively and loss is vise versa to the profit. However, profit is calculated in terms of PIPS.
HOW TO CALCULATE PIPS?
Pip is the smallest unit of change in which a currency moves. One pip is always equal to 1/100 of a cent. However, it depends on the trader that which type of lot he selects to open his position.
WHICH IS BASE CURRENCY IN A PAIR OF TWO CURRENCIES?
In a pair of two currencies, the first currency is quoted as base currency while the second is referred to as the counter or quote currency.
WHICH BROKER IS BEST TO START?
It depends on personal choice of a trader with whom he/she wants to work. However, the absolute aim of every brokerage form is to facilitate the individual trader. whereas the services of brokerage form varies from one to another. In the end, it is choice of trader.
HOW MANY TYPES OF ACCOUNTS?
There are three main types of trading accounts such as; Standard, Mini and Managed accounts. Each has it's own pros and cons.
WHICH TYPE OF ACCOUNT IS BEST FOR BEGINNERS?
It depends on the risk tolerance, size of investment and amount time to be dedicated to trading. In the end, mini type of account with low initial investment is best for beginners.
WHAT IS INITIAL INVESTMENT REQUIRED FOR MINI ACCOUNT?
It varies from one to another brokerage form, but most brokerage forms offer opening of mini accounts ranging from 5 or 10 dollars to 50 dollars.
WHAT IS TRADED ON FOREX?
Forex trading is a buying and selling of one country's currency against another country's currency through involvement of financial institutions.
WHICH CURRENCIES ARE TRADED IN FOREX?
Forex is exchange of foreign currencies and almost all countries' currencies are traded in Forex against one or another pair.
WHICH ARE MAJOR & MINOR CURRENCIES?
There are seven major currencies that are EUR/USD, USD/CHF, GBP/USD, USD/JPY, AUD/USD, NZD/USD, and USD/CAD. However, all other countries currencies are traded in one or another pair against these seven major currencies.
HOW CURRENCIES ARE TRADED IN FOREX?
Currencies in Forex are traded in pairs through involvement of Banks, Brokers or dealers. the Banks or Dealers involved in currencies trade take their commissions as their profit and facilitate the traders.
HOW TO READ FOREX QUOTE?
Each country has three letters symbol: as USD, which is used in Forex quotes. the First two letters identify the name of that country and third letter the name of that country's currency. As, USD ( US=American, and D= Dollar) Hence, USD mean American dollar.
WHAT IS BID and ASK Price?
Bid is a price that a buyer is willing to pay for buying the currency. While ask is a price that seller of currency asks for sale of his currency.
HOW TO CALCULATE PROFIT/LOSS?
A trader makes profit when his opening trade goes positively and loss is vise versa to the profit. However, profit is calculated in terms of PIPS.
HOW TO CALCULATE PIPS?
Pip is the smallest unit of change in which a currency moves. One pip is always equal to 1/100 of a cent. However, it depends on the trader that which type of lot he selects to open his position.
WHICH IS BASE CURRENCY IN A PAIR OF TWO CURRENCIES?
In a pair of two currencies, the first currency is quoted as base currency while the second is referred to as the counter or quote currency.
WHICH BROKER IS BEST TO START?
It depends on personal choice of a trader with whom he/she wants to work. However, the absolute aim of every brokerage form is to facilitate the individual trader. whereas the services of brokerage form varies from one to another. In the end, it is choice of trader.
HOW MANY TYPES OF ACCOUNTS?
There are three main types of trading accounts such as; Standard, Mini and Managed accounts. Each has it's own pros and cons.
WHICH TYPE OF ACCOUNT IS BEST FOR BEGINNERS?
It depends on the risk tolerance, size of investment and amount time to be dedicated to trading. In the end, mini type of account with low initial investment is best for beginners.
WHAT IS INITIAL INVESTMENT REQUIRED FOR MINI ACCOUNT?
It varies from one to another brokerage form, but most brokerage forms offer opening of mini accounts ranging from 5 or 10 dollars to 50 dollars.
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