Mindblown: a blog about philosophy.
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What is a Spread in Forex Trading?
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“.…
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What is a Lot in Forex?
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…
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What is a Pip in Forex?
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…
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Know When to Buy or Sell a Currency Pair
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…
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What is forex trading?
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…
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How do people participate in the forex market?
So far, you’ve learned what the forex market is, how big it is, the different types of currencies and how they are sold in pairs. But how do you trade forex? Let’s now take a look at how to participate as a trader. How to Trade Forex Because forex is so awesome, traders came up with a number of…
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Forex Market Size And Liquidity
The bulk of forex trading takes place on what’s called the “interbank market“. Unlike other financial markets like the New York Stock Exchange (NYSE) or London Stock Exchange (LSE), the forex market has neither a physical location nor a central exchange. The forex market is considered an over-the-counter (OTC) market due to the fact that the entire market…
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Buying And Selling Currency Pairs
What is forex trading? Forex trading is the simultaneous buying of one currency and selling of another. Currencies are traded through a “forex broker” or “CFD provider” and are traded in pairs. Currencies are quoted in relation to another currency. For example, the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).When you trade in…
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What Is Traded In Forex?
What is traded in forex? The simple answer is MONEY. Specifically, currencies. Because you’re not buying anything physical, forex trading can be confusing so we’ll use a simple (but imperfect) analogy to help explain. Think of buying a currency as buying a share in a particular country, kinda like buying shares in a company. The price of the currency is…
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What is Forex?
What is forex? Quite simply, it’s the global financial market that allows one to trade currencies. If you think one currency will be stronger versus the other, and you end up correct, then you can make a profit. Once upon a time, before a global pandemic happened, people could actually get on airplanes and travel internationally.…
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