Forex Definitions

• CURRENCY PAIR: Forex trading is the purchase of one currency by selling other currency. Currencies are traded through broker as Pairs are known as Currency Pair. For Example, the pair of EURO & US Dollar is EUR/USD.The first currency of a currency pair is called the "base currency", and the second currency is called the "quote currency". The currency pair shows how much of the quote currency is needed to purchase one unit of the base currency.For Example, if the USD/EUR coin pair is cited as being USD/EUR = 1.5035 and you buy the pair, this implies that for each 1.5035 euros that you offer, you buy (get) US$1. In the event that you sold the coin pair, you would get 1.5 euros for each US$1 you offer. The opposite of the cash quote is EUR/USD, and the comparing value would be EUR/USD = 0.667, implying that US$0.667 would purchase 1 euro.
 Read more Basic of Forex

• CROSS CURRENCY PAIR: Major currency pair are Dollar based for example, EUR/USD, AUD/USD, GBP/USD, JPY/USD etc. all these pair have a common currency USD. When none of the currency in a pair is USD then it is called Cross Currency Pair. Suppose,  EUR/JPY.

• BID PRICE: The BID PRICE represents the maximum price that a buyer or buyers are willing to pay for a security. The ask price represents the minimum price that a seller or sellers are willing to receive security.

• ASK PRICE: The ASK PRICE speaks to the base value that a merchant or merchants are willing to get for the security.

• TRADE: A TRADE or exchange happens when the purchaser and merchant concede to a cost for the security.

• SPREAD: The distinction between the offer and asked costs, or the spread, is a key marker of the liquidity of the advantage. The littler the spread, the better the liquidity. When a currency moves from a value of 1.4511 to 1.4514, it moved 3 PIPs. When a pip has a value of $10, you have gained $30.

• LEVERAGE: Buying & Selling the of currency more than the amount you have by Borrowing a certain amount of the money needed to invest in Trade known as Leverage. In Forex, usually that money borrowed from a Broker.

• PIPs:  PIP stands for "price interest point". A PIP stands for percentage in Point. PIP is the smallest price movement of a traded currency. It is referred as Point also.For most currencies a pip is 0.0001 or 1/100 of a cent.
•  PIPETTEs: A pipette is 0.00001 of  1/1000 of a cent for most of the currencies.

• LOT: The insignificant traded amount for each currency transaction is known as LOT. For regular accounts one lot equals 100,000 units of the base currency. You can also open a mini account and trade in mini lot sizes that are 10,000 units of base currency.

• TIME FRAME: Time Frame specifically shows the maximum price hike & minimum price decrease during 5 mins, 15 mins, 30 mins, 1hour, 1 week or 1 year. Usually M1, M5, M15, M30, H1, H2, D1, W1 time frames are used usually in Meta Trader4.

• BROKER: The company which will provide you the facility to make currency transaction in FOREX market is a Broker. Instaforex, Liteforex, FXCM, GFC Markets, FXCS etc. are some Broker.

• DEMO ACCOUNT: Demo Account is an virtual account to practice Forex trading. It is same as a real account. But it has no real money, you will trade here with virtual fake money you cannot withdraw your profit from here or if you loose the money don't be afraid you do not loose your real money.

• REAL or LIVE ACCOUNT: A Live account is a real account where should one trade with his real money he/she will get real profit or loss which will increase or decrease his/her real amount of money deposited on that account.

• SCALPING: Small trades of few minutes are called as Scalping. These trades can be between 1-20 pips. If the Profit goes above 20 pips of a trade than it will not be Scalping it will be Normal trade.

 

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Forex Beginner's Guide

Forex is a compression of the word 'Outside Exchange' it is infrequently abridged further and called basically FX. Forex gives chances to theory and that is likely what fortified your interest.

To turn into an equipped member of FOREX business, or an expert dealer, it is important to go through certain stages gaining abilities and information, which are fundamental for  exchanging on FOREX.

Being a tenderfoot dealer you need to pick a Company where you will get an opportunity to Open a DEMO account. This Demo record will help you to procure information about FOREX market and expand your shot of benefit in tread market.

3 easy steps on FOREX market

Step 1: Training on a DEMO account

Many companies provides to open a DEMO account for practicing the FOREX trading. This will help you to know 

• 1)  How to operate the trading platform
• 2)  Trading strategies for unlimited period of time 

This DEMO record is absolutely free record. So you can attempt yourself as a broker on DEMO account. In spite of the fact that is a demo account however you can exchange here as a live record. They give the same conditions as on live records.

You can rehearse in a demo account without a danger. You can open demo account as much as you need reason it is absolutely free. You can likewise get bolster through their client care live or via mail or by phone.

Practice on a DEMO account till you become an expert trader. Don't be emotional & no hurry. Please try on DEMO account till you are not satisfied on your profit at least 2 month. your hastiness will Loose your money.  
REMEMBER "Please try on DEMO account till you are not satisfied on your profit at least 2 month"

Step 2. Trading on live account.

When you pick up experience of exchanging through the stage and take in the significant exchanging methodologies, you can open a live exchanging record. You can exchange on a live record restricting your dangers. As least exchange volume is not constrained, you can exchange as per the guideline "risk=profit', when you focus the volume of your speculations.

Live exchanging issues you all the more in correlation with a demo account. You will start to feel the association between your benefit and cash developments when you will begin to exchange with genuine record, even least finances. For the following level of merchant's advancement this experience is vital.

Step 3. Professional work. On the off chance that you have adequate information you can work autonomously on the money business utilizing your Own or  acquired exchanging procedures for making benefit from cash developments. As an expert dealer you can add to your own particular style of exchanging and pick the instruments which are suitable for your methodology. Not all new impending dealers have the capacity to achieve this level, numerous organizations give bolster professionally and twists each push to help every customer, if any issue emerges. To Know More Read Other Posts which will be very helpful for you.

Why Forex? - Easy to understand.

Forex is simply trading of currencies.
Escape from the confusing forex theories, concepts, words we are telling you the What is forex by a story in a easy & simple way. The story will show you that the fundamentals of the industry are actually not so complicated to grasp.

Why RIDITA BECOME A FOREX TRADER ?
 

Disclaimer: Please note that the story and characters are fictional and none of the events of the story should be taken or misunderstood as investment advice

Ridita is a chemistry teacher from Washington City who has spent the past month teaching in Europe through a teacher exchange programe.She has 1000 Euros in savings and she wants to open a bank account in US dollars. Her €1000 are equivalent to $1350 at the time that she opens her Bank account.

 

One day, Ridita is reading up on financial news on the newspaper at night and she sees that the euro has risen in value against the dollar. This means that his savings have increased and Ridita think to take the chance to withdraw them.                                                                     It's midnight however and the banks are shut, so Ridita decides to stop by the bank the following day after School to withdraw his money. Come daytime, the euro plummets in value and it is now pointless for Ridita to withdraw his money. She has missed a chance to take advantage of this trading opportunity.                                                                                                                           That evening, Ridita goes out for a meal with some of his colleagues and the topic of conversation is forex. One of the other teachers, Isabelle, is telling everyone about her experience in forex trading. Ridita finds what she has to say very interesting and the notion of trading online sounds very appealing to her, so he decides to look into it some more.

Ridita looks online and finds a forex broker. After examining what this broker has to offer, she decides to open an account with them. Through this account he discovers incredible possibilities. 
                                                                                        Through the use of LEVERAGE, Ridita can deposit his 1000 dollars and be given the potential to trade with up to 500,000 dollars. Leverage is used to increase the buying power and the potential risk of losses of a trader, even if they can only provide a small deposit. The next time the value of the dollar rises, all Ridita has to do is log in to his trading account and sell his dollars. She is extremely pleased with the profit she has made and is grateful that the market moved in the direction he wanted it to, otherwise she could have suffered losses that could have resulted to the loss of his invested capital.

Ridita learns the ropes of forex trading; she understands the risks involved in forex trading and begins to use TECHNICAL ANALYSIS and FUNDAMENTAL ANALYSIS to follow the market and predict which direction it is moving in. Technical analysis includes studying charts to follow market trends, whereas fundamental analysis involves keeping up to date with economic and political indicators which may affect price movement. All of this information is available on his broker's website.   

Depending on the state of the market, sometimes Ridita has a BEARISH OUTLOOK and other times she has a BULLISH OUTLOOK. When she is feeling bearish, she predicts that the value of an asset will fall and he takes a SHORT POSITION, which means she sells this asset. When she is feeling bullish, she takes a LONG POSITION, which means that she predicts that the value of an asset will rise and so she buys it. Ridita is lucky that her broker offers low SPREADS.

A spread is the difference between the BID PRICE (the maximum price that a buyer is prepared to pay for an asset) and the ASK PRICE (the price that a seller is prepared to accept for an asset). The lower the spreads, the less money a broker is charging for their services.



Ridita continues to trade forex online for many years to come. she experiences both profits and losses over the years; sometimes he makes mistakes and miscalculations, other times he hits the nail on the head and gains high profits to show for it.

Choose your trader (forex traders list)

Forex is an fast growing money market over the world now a days. To invest money in forex traders first need to know the companies then invest where you feel safe.
Be sure about your companies how do they serve you contact with them & choose the right trader.

Companies	Languages	Trading Platform	Bid/Ask spread on Major currencies	Minimal Transaction Size	Minimal Deposit Size
	English	MetaTrader4 / GFC Trader	3 pip		100 USD
	English	MetaTrader4	0 - 2 pip		5 USD
	English	MetaTrader4	3 pip		25 USD
	English	MetaTrader4	0.5 pip		100 USD
	English	MetaTrader4 + PDA & Mobile Edition	2 pips		1.00 USD
	English	HY WebTrader	3 pip		50 USD
	English	SWFX - Swiss FX Marketplace	0.5 - 1 pips		50,000 USD
	English	GFX GlobalTrader	2-3 pips		2,000 USD
	English	MetaTrader4			500 USD
	English	MetaTrader4	Lower than 1 pip		250 USD
	Russian	MetaTrader5			100 USD
	English	MetaTrader4			1 USD
	English	MetaTrader4	1.6-3.5 pips
	English	MetaTrader4
	English	MetaTrader4	A lot range spreads		10 USD
	English	MetaTrader4	4-5 pips	10 USD	250 USD
	English	MetaTrader4	3-5 pips	1 000 USD	200 USD
FXCS CAPITAL	English	MetaTrader4	0.8-8 pips