How To Make Money Trading Forex
Buying and selling in the forex market is like buying or selling stocks, bonds and commodities market. The only difference is that currencies are traded in pairs, while on the other hand individual scrips and commodities are traded in the stock and commodity markets. Traders who are experienced in trading in other markets can still [...]
What is a PIP and How is it Calculated?
Before trading, it is essential for traders to clearly understand the concept of Point in Percentage (or pip), so that they can easily calculate their profits and losses. PIP – Pip means percentage in points. This is the smallest price increment a currency can make. In Forex, prices are quoted up to the 4th decimal [...]
What Do You Need To Keep in Mind Whilst Trading Forex?
There are few small yet important factors which traders should keep in mind while trading Forex, particularly for novice traders. 1. Start small and grow with experience “Big money attracts big profits.” This statement is the biggest trap that a novice trader can fall into. It definitely is true for experienced traders who have a [...]
How Does The Forex Market Differ From The Other Assets Classes?
How does the forex market differ from the Equity market? The main differences between Forex and Stock markets are as follows: Basis Forex Market Equity Market 24 hour market Yes No Volume and Liquidity Very High Less than Commodities and Forex Commission No Yes Exchange No Yes Margin Trading High Low Manipulation Difficult Commonplace 1. [...]
Essential Terms for Forex Traders
Basic Forex Glossary: 1. Bears – Bears are the opposite of bulls, and they bet on a falling market. Hence, they are by virtue of their expectations, short traders. 2. Bid / Ask Price – Bid price is the price quoted by the bidder to purchase a currency. The ask price is the price which [...]
What is meant by Direct & Indirect Quotes? How to Read Forex Quotes…
Direct and Indirect Quote In the foreign exchange market, two rates are quoted in pairs by market makers (or dealers). Exchange rate – Foreign Exchange rate (or FX rate) is the rate at which the one currency is valued in terms of another currency. For e.g., 1USD = 96.62 JPY. This is the exchange rate [...]
How Much Capital Do You Need To Start Trading Forex?
How much does an individual have to pay to start trading in Forex? Forex trading is far easier than trading equities, as traders need to cover only a few major currencies such as the USD, GBP, EUR, and JPY. Trading forex is still not child’s play and warrants good knowledge and awareness about the world’s [...]
What Are the Basic Requirements to Start Trading in Forex?
The Basics of Forex Trading In order to start trading in forex, one needs to open an account with a forex broker. Today, there are practically a zillion brokers and trading platforms available with various options and procedures. Typical questions for the novice trader are Who is the best broker for me? How can I [...]
What Are The Advantages of Trading Forex?
What trade Forex? Traditionally, equity markets or debt markets have been the sole center of attention for most investors and traders around the world. Currency markets have much to offer, over and above the other traditional and upcoming markets such as commodities, it’s not surprising that the volumes in Forex are far above and beyond [...]
What Are The Different Types of Forex Traders?
Who can trade in the Forex market? In the forex market, investors or (traders) are of three main types- Hedgers, Speculators and Arbitrageurs. All of these investors contribute to the substantial liquidity of the forex market. This classification is on the basis of their trading orientation or objective- to hedge currency fluctuations, making a quick [...]
