Category: 2. How Do You Trade Forex?

Before we go any further, we are going to be 100% honest with you and tell you the following before you consider trading currencies: 1. All forex traders, and we do mean ALL traders, LOSE money on some trades. 2. Trading forex is not for the unemployed, those on low incomes, are knee-deep in credit…

You can open a demo account for FREE with most forex brokers. These “pretend” accounts have most of the capabilities of a “real” account. But why is it free?It’s because the broker wants you to learn the ins and outs of their trading platform, and have a good time trading without risk, so you’ll fall in love with…

“Would you like pips with that?” Okay, not that type of order. An order is an offer sent using your broker’s trading platform to open or close a transaction if the instructions specified by you are satisfied. Basically, the term “order” refers to how you will enter or exit a trade. Here we discuss the different types…

As in any new skill that you learn, you need to learn the lingo… especially if you wish to win your love’s heart. You, the newbie, must know certain terms like the back of your hand before making your first trade. Some of these terms you’ve already learned, but it never hurts to do a…

Forex brokers will quote you two different prices for a currency pair: the bid and ask price. The “bid” is the price at which you can SELL the base currency. The “ask” is the price at which you can BUY the base currency. The difference between these two prices is known as the spread. Also known as the “bid/ask spread“.…

Forex is commonly traded in specific amounts called lots, or basically the number of currency units you will buy or sell. A “lot” is a unit measuring a transaction amount. When you place orders on your trading platform, orders are placed in sizes quoted in lots. It’s like an egg carton (or egg box in British English). When you buy eggs, you usually…

What’s a pip? You’ve probably heard of the terms “pips,” “points“, “pipettes,” and “lots” thrown around, and now we’re going to explain what they are and show you how their values are calculated. Here is where we’re going to do a little math. Just a little bit. Take your time with this information, as it…

Forex trading involves trying to predict which currency will rise or fall versus another currency. How do you know when to buy or sell a currency pair? In the following examples, we are going to use a little fundamental analysis to help us decide whether to buy or sell a specific currency pair. The supply and…

The forex (also known as FX or foreign exchange) market refers to the global marketplace where banks, institutions, and individuals speculate on the exchange rate between fiat currencies. The forex market is the largest financial market in the world. How does forex trading work? As a forex trader, you are speculating on whether one currency will rise…