Category Archives: expert advisor

Interest rate

Interest rate An interest rate is either the cost of borrowing money or the reward for saving it. It is calculated as a percentage of the amount borrowed or saved.1 You borrow money from banks when you take out a home mortgage. Other loans can be used for buying a car, an appliance, or paying…

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Equity in Forex

Equity in Forex The account equity or simply “Equity” represents the current value of your trading account in forex. Equity is the current value of the account and fluctuates with every tick when looking at your trading platform on your screen. It is the sum of your account balance and all floating (unrealized) profits or losses associated with your…

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Resistance Level

Resistance Level The resistance level can visualize using different technical indicators rather than simply drawing a line connecting highs. What is Resistance? Initially, the resistance level on a candlestick chart is the price when you can expect more sellers than buyers. It prevents the price from rising further and the resistance levels indicate a price…

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Bid vs Ask Price

Bid vs Ask Price The Bid price is the price a forex trader is willing to sell a currency pair for. Ask price is the price a trader will buy a currency pair at. Both of these prices are given in real-time and are constantly updated. So for example, the British pound against the US…

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Spread

Spread Definition Most forex currency pairs are traded without commission, but the spread is one cost that applies to any trade that you place. Rather than charging a commission, all leveraged trading providers will incorporate a spread into the cost of placing a trade, as they factor in a higher asking price relative to the…

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Currency Pair

Currency Pair A currency pair is a quotation of two different currencies, where one is quoted against the other. The first listed currency within a currency pair is called the base, while the second currency that is the benchmark is called the quote.   Understanding Currency Pairs Trading currency pairs are often conducted in the foreign…

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Lot size

Lot size The Lot Size represents the standardized number of a financial instrument as set out by the exchange. When trading stocks, the lot size refers to the number of shares you buy in one transaction. When trading Options/Futures, the Lot Size (contract size) refers to the total number of contracts contained in one derivative…

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Pip

Pip What is it? Pip is an acronym for “percentage in point” or “price interest point.” A pip is the smallest price move that an exchange rate can make based on forex market convention. Most currency pairs are priced out to four decimal places and the unit change is the last (fourth) decimal point. It…

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Forex Leverage

Forex Leverage Leverage involves borrowing a certain amount of the money needed to invest in something. In the case of forex, money is usually borrowed from a broker. Forex trading does offer high leverage in the sense that for an initial margin requirement, a trader can build up—and control—a huge amount of money. What is Leverage Ratio?…

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Exchange Rate

Exchange Rate Typically, an exchange rate uses an acronym for the national currency it represents. For example, the acronym USD represents the U.S. dollar, while EUR represents the euro. To quote the currency pair for the dollar and the euro, it would be EUR/USD. In the case of the Japanese yen, it’s USD/JPY, or dollar…

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