Technical analysis Technical analysis is the framework in which traders study price movement. Foreign exchange markets are particularly well suited to using technical analysis. The high levels of liquidity in terms of trading volumes and some players, and sensitivity to big long-term national-level trends means that forex markets tend to trend over time and patterns often…
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…
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…
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…
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…
What is margin in trading? A Forex trading margin is a ratio that defines the leverage a trader has in the market. Trading margins in the world of Forex range from 10:1 to 50:1 on average. So, when it comes to Forex trading, a $1 principal investment gives the trader the ability to trade…
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?…
Stock Market A stock market, equity market, or share market is the aggregation of buyers and sellers of stocks (also called shares), which represent ownership claims on businesses; these may include securities listed on a public stock exchange, as well as stock that is only trading privately, such as shares of private companies, for investors through equity crowdfunding platforms. Investment in the stock market…
Forex Indicator Forex Technical Analysis Indicator usually forecasts price changes in the currency market. They are calculations that take the volume and price of a certain financial instrument into account. By using Forex indicators, traders can make decisions about market entry and exit. In the MetaTrader 4 trading platform, there is a function that allows…
Moreover, How to start trading on forex How to start trading on forex? Many want to make money in the forex market, but few who begin to trade forex want to do the prep work needed to become successful traders. While trading forex has become easier now than ever before because you can trade online via the internet, most novice traders…