Forex Trading FAQs
FREQUENTLY ASKED QUESTIONS
Foreign Exchange, widely known as Forex, is the largest market in the world by total trading volume. Simply put, it is the market for exchanging one currency for another.
Forex trading is safe if you know what you are doing. Forex may sound appealing, but if you do not know what you are into, you will lose. Forex may be a good way to earn money, but it can also be very risky.
A pip is a unit of change in the exchange rate of a currency pair. A pip is the smallest price movement of a traded currency.
Spread is the difference between the bidding price and the asking price. Forex brokers get profit on spread making money on every Forex trade performed through their network.
Leverage is used to significantly increase your purchasing power. When a broker offers a 1:500 leverage, this mean that with a deposit of $100, you may start trading with up to $50,000.
In the EUR/USD pair, EUR is the base currency and USD is the quote currency.
You may start with only $1. A lot of brokers require only a dollar deposit.
The economic and political conditions of a country affect the price of its national currency.
It opens on Sunday around 10:00 pm GMT and closes on Friday around 10:00 pm GMT. Forex traders can make deals at any time in this interval.