简体中文
繁體中文
English
Pусский
日本語
ภาษาไทย
Tiếng Việt
Bahasa Indonesia
Español
हिन्दी
Filippiiniläinen
Français
Deutsch
Português
Türkçe
한국어
العربية
Abstract:When you decide to learn forex trading, there are many terms and abbreviations in the trading process that make you confused. However, there are only a few basic terms that are important for you to know.
The value of a certain currency against other currencies. For example, if there is EUR / USD currency pair = 1.3200, then 1 Euro is worth 1.3200 dollars.
According to Investopedia, pip is a very small measure of change in a currency pair in the forex market. The smallest change in value that can occur in a currency pair. For example, 1 pip for the EUR / USD pair is 0.0001 and 1 pip for the USD / JPY pair is 0.01.
Leverage is a trading feature that allows you to control trading with a greater amount of capital than you have. For example, with a leverage of 1: 100, you can open trading positions of up to USD100,000 with only an initial capital of USD1,000.
With leverage, you can increase the profit you get. However, it can also increase the potential loss if the position you open moves against the estimated price. Thus, you should use the leverage that is not too large to minimize losses.
Margin is the amount of deposit required to open or maintain a trading position. There are two types of margin, that is used and free. The used margin is the number of funds that you use to maintain a trading position. While free margin means the number of funds available in your account and you can use it to open other trading positions.
The spread is the difference between the selling price and the buying price or bid and asks of a currency pair. For example, if the EUR / USD pair is at 1.3200 / 03, the spread is 3 pips, between 1.3200 and 1.3203.
To get profit when the market goes up, you have to buy at a cheap price, and sell it at a high price. This is known as a long position.
Meanwhile, if the market is moving down, then you must first sell at a high price, then buy it at a cheap price. This position is called a short position.
Stop-loss or cut loss is a term that means stop your trading loss. In many trading applications, this feature can be run automatically. You only need to enter the amount of loss you anticipate as the maximum loss limit, and the application will close the position automatically if the loss occurs.
Disclaimer:
The views in this article only represent the author's personal views, and do not constitute investment advice on this platform. This platform does not guarantee the accuracy, completeness and timeliness of the information in the article, and will not be liable for any loss caused by the use of or reliance on the information in the article.
Gold has surged to a record high of $2,625.89 an ounce, driven by trader expectations ahead of significant U.S. economic data that could signal whether last week’s 50-basis-point interest rate reduction by the Federal Reserve is the start of a series of aggressive cuts. This latest increase marks a 0.2% rise, eclipsing the previous record set just days ago.
Choosing a reliable broker is crucial for successful trading. The Financial Conduct Authority (FCA) in the UK is renowned for its stringent regulatory standards, ensuring that brokers adhere to high levels of professionalism and security. Based on WikiFX evaluations, here are the top five FCA-regulated brokers that stand out for their reliability and performance.
Saxo Bank launched an attractive promotion for new clients that offers zero commission trading on transactions for the 100 most popular US stocks. This campaign began on September 17, 2024, and runs until December 31, 2024. It aims to attract clients who want to invest without paying trading costs.
MetaQuotes now offers Nasdaq real-time tick data in MetaTrader 5. Subscribe for accurate market analysis, improved trading strategies, and flexible subscription plans.