How to play Forex for beginners explained by professional forex trading experts, All you need to know about How to play Forex Trading.
How to play Forex for beginners
To trading Forex you need an online trading platform and to download free online trading platform you need to sign up with Forex Brokers. Then FX brokers provide you different trading platforms to start trading currencies on demo or real foreign exchange account but if you want to play Forex as a beginner then you can download forex trading platforms free and trading Forex in a demo account and meanwhile you learn Forex trading until you know how to play Forex trading.
How to play Forex Trading
More than 60% of trading in the Forex market is done in the currency pairs. Currencies are always bought and sold in pairs in the Forex market. In the currency pair, one currency is the base currency and the other is quote currency. A currency whose value is calculated in relation to the other is called the base currency and the other one is called the quote currency. The currency pair is represented in the currency quotation, for example, USD/CAD is the currency quotation in which USD is the base currency and CAD is the quote currency. The four major currency pairs are EUR/USD, USD/JPY, GBP/USD and USD/CHF.
Long Buy: Long Buy is a position in the Forex market which is created when base currency is bought and quote currency is sold.
Short Buy: Short Buy is just the opposite position of Long Buy.
Pip: Pip is an abbreviated form of Price Interest Points. It indicates the profit of the Forex traders.
Spread: Spread is the difference between the Ask price and the Bid price.
Leverage: Leverage is the amount of purchase that you can do with your own money in the Forex market. For example, if you are offered the leverage of 100:1 then you can open a position of $10,000 with only $100 in your account.
Stop Loss: Stop loss is the rate of the base currency of an opened position set by the trader or investor. If the rate of the base currency falls as low as the value of stop loss then the opened position of the trader or investor will automatically be cut off.