Forex Trading for Beginners.
Online Forex and CFD trading for beginners can be especially tough. This is mostly due to unrealistic expectations that are common among Forex newcomers. What you need to know is that Forex trading is by no means a get-rich-quick scheme.
A Complete Forex Trading Beginners' Guide.
Let's look at some valuable Forex trading tips for beginners.
You can always try using a risk-free demo account to get a better understanding of the market.
The Retail Trading Food Chain.
Knowing how the industry is mapped out is important, because the collective combination of all participants creates the market you trade in.
The relative weight of the trading party to the market, is measured by how much money that party manages – from billion dollar hedge funds and investment banks to private traders with a few thousand dollars in action.
Long-Term Vs. Short.
The initial stages of your trading should be about preserving your capital – not trying to grow it. Minimising risk is the primary objective. One way to possibly achieve this, is to use a long-term trading stance.
What casual Forex trading beginners generally fail to realise is that most successful traders try to make a return on their investment based on long-term trends. They hold their orders open for weeks, months and even years. This way, Forex works as an investment and less as a lottery.
Long-term trading requires patience and modesty in trading volume.
And as a payoff, it requires fewer hours spent staring at the screen and therefore less stress. Mathematics is obviously useful in online Forex trading, too. And thankfully, there's some simple ways to calculate what balance, leverage and trading volume you need per instrument, to keep your risks in check.
Don't Overcomplicate Things.
Don't overload your charts with indicators and your strategy with handles or switches. The more complicated your trading strategy is, the harder it will be to follow and the less likely it is to be effective.
To find out how well a strategy performs on average in different markets, you need to carry out the necessary backtesting and research. Keeping it simple can be a challenge, especially considering the multitude of supporting tools you can apply to your charts.
Just remember – it's not about the amount of tools at your disposal, but it is about being able to use a few tools well.
Reconsider Buying Software.
Forex trading, for beginners or professionals, will require software. Competition between brokers means that most Forex trading software is available for free.
Many Forex trading beginners are also tempted to purchase FX robots a. k.a. Expert Advisers (EAs). While some EAs can be helpful, it can be hard for them to stay profitable when the market changes.
And unless you understand the code it's written in, you're probably not going to be able to adapt your EA to work with those changes.
If you are one of the many who believe an EA would outperform the market, then perhaps give it a try with the MT4 Supreme Edition plugin.
Learn About Technical and Fundamental Analysis.
Analysis is absolutely vital to trading. Charts are helpful for both short and long-term trading. You should be looking at daily, weekly and monthly charts.
Any Forex trading guide for beginners of technical analysis will tell you that your main tools are:
trend lines; support and resistance lines; indicators based on the above.
Meanwhile, understanding fundamental analysis allows traders to gain an understanding of how one country's news events and financial policies can affect the Forex ecosystem.
Trading Accounts Differ in More Than Minimum Deposit Amounts.
Attributes such as minimum deposit and tight spreads are one of the last points to consider when opening a long-term trading account. Pay attention instead to instrument portfolios, execution models and the leverage offered.
The best Forex trading platform for beginners depends on the broker. The best Forex broker for beginners depends on the trading system.
What's important is the quote feed which also depends on the broker.
Be cautious of Dealing Desk accounts, unless you are specifically interested in conditions offered by them. Their features usually include momentous execution, instant execution and comparatively low minimum deposits. This simply means you are trading with the broker rather than through it.
Be Careful In Volatile Markets.
Volatility is what keeps your trading activity moving. However, if you're not careful it can also completely destroy it. When volatile, the market moves sideways, which makes spreads grow and your orders slip.
Incorporate volatility analysis into your trading strategy. As a beginner Forex trader, you need to accept that once you are in the market, anything can potentially happen, and it can completely negate your strategy.
For example, the crisis with the Swiss franc in January 2015, ended business for many traders and brokers within hours.
Admiral Markets have helped to minimise volatility risk for you by offering a package of advanced volatility trading settings to help you avoid the reefs of the financial markets.
Everything Is Old News in This Industry.
Updates you hear on CNN, Bloomberg and in your Trader's Calendar have already been discounted by the market. The only thing that news promises, is volatility.
Spreads grow when news is out and before you know it, you are deep in re-quotes and slipping stop-losses. Unless you are a professional news trader, stay away from news trading.
The Trend Is Your Friend.
Whether you are a beginner trader or a pro, you are best to trade with what you see and not what you think.
For example, you might think that the US dollar is overvalued and has been overvalued for too long. Naturally, you will want to short and you might be right eventually.
But if the price is moving up, it does not matter what you think. In fact, it doesn't matter what anybody thinks – the price is moving up and you should be trading with the trend.
There Are Hundreds of Available Markets.
When learning about Forex trading, many beginners focus on major currency pairs because of their daily volatility and tight spreads.
But there's numerous other opportunities – from exotic FX pairs, stocks, commodities and energy futures to indices. There are even indices that track groups of indices and you can trade them as well.
How many markets you scan for opportunities is up to you, but do not limit yourself to one instrument or one market. Market limitation leads to overtrading, so diversify your investment.
The Trade Is Open Until It's Closed.
A regular Forex trading beginner concentrates on opening a trade, but the exit point is equally important.
If your trading strategy does not consider the mechanism of closing a deal, it's not going to end well, and you're much more likely to suffer heavy losses.
Ensure You Are Legally Protected.
Financial trading is usually a legally regulated activity. Government-assigned regulators of brokerage firms urge caution to Forex trading beginners across the globe.
When checking for secure conditions in investing or trading, three major points to look for are:
segregation of client funds – assures your money is not used by your broker for anything except your trading, which makes it always available for withdrawal upon your request; financial services compensation scheme – defines the amounts of funds that will be compensated to you in the extreme case of your broker or its bank going bankrupt; efficient customer enquiry and complaints procedure – ensures that if an enquiry is filed by a Forex trader and cannot be resolved within a few hours, it is immediately forwarded to the customer support desk or compliance department.
Whatever happens, make sure your investment is protected.
Test on a Demo Account or With Simulation Software.
Every broker offers a demo account – beginner or not, test every new strategy there first. Keep going until the results are conclusive and you are confident in what you are testing.
Only then should you open a live account and use your strategy in the smallest volume trades available. Be sure to treat your demo account trades as if they were real trades.
You may also use Forex simulation software to simulate market conditions, creating an impression of a live trading session.
Write Everything Down.
A novice Forex trader must develop the mindset of a business owner. Every business requires a business plan, constant monitoring and regular auditing. Jumping ahead without plans and processes is a surefire way to fail.
Starting a trading journal is an absolute must. Everyday, be sure to write the following:
points for further research; reasons to open or close a trade; your achievements and mistakes.
Keep your journal handy as a point of reference when analysing your activity. A journal ensures none of your actions are in vain. Analysis of good trades will boost your trading confidence and motivate you to push harder and go further.
On the other hand, analysis of bad trades will help you extract value and improve.
Do Your Research.
Generally speaking, the less you know, the more at risk you are, and there is no limit to how much you can know or risk. An endless amount of information is available on the internet free of charge, like:
Want to know how to learn Forex trading for beginners? Read everything and always analyse everything you read – don't just take information in good faith.
Learn to trade step-by-step with our brand new educational course, Forex 101, featuring key insights from professional industry experts.
As exciting as trading can be, it is still stressful work. There will be a lot of setbacks on your way to the top. Emotions can force your hand to open a trade too early and/or close it too late.
The main cause of stress for beginners in trading is the fact that some Forex trades will end in loss no matter what – it's just the way the market is.
Just remember that war is not won with a single battle. Rather, it is overall performance that counts (which by they way, is another reason to keep a trading journal).
Financing Your Trading.
Only one kind of money is good for investing and that's the kind that you are willing to lose. Preferably without damaging your physical and/or mental well being in the process.
An old saying sums up this article:
"Every profitable trader is profitable in his own way, while every loser loses exactly the same way."
Remember, use every available opportunity to learn. It's a never ending process!
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Risk warning: Trading Forex (foreign exchange) or CFDs (contracts for difference) on margin carries a high level of risk and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. Before using Admiral Markets UK Ltd or Admiral Markets AS’ services, please acknowledge all of the risks associated with trading.
The content of this website must not be construed as personal advice. We recommend that you seek advice from an independent financial advisor.
All references on this site to ‘Admiral Markets’ refer jointly to Admiral Markets UK Ltd and Admiral Markets AS. Admiral Markets’ investment firms are fully owned by Admiral Markets Group AS.
Admiral Markets UK Ltd is registered in England and Wales under Companies House – registration number 08171762. Admiral Markets UK Ltd is authorised and regulated by the Financial Conduct Authority (FCA) – registration number 595450. The registered office for Admiral Markets UK Ltd is: 16 St. Clare Street, London, EC3N 1LQ, United Kingdom.
Admiral Markets AS is registered in Estonia – commercial registry number 10932555. Admiral Markets AS is authorised and regulated by the Estonian Financial Supervision Authority (EFSA) – activity license number 4.1-1/46. The registered office for Admiral Markets AS is: Ahtri 6A, 10151 Tallinn, Estonia.
Forex Trading Software Reviews.
Which is the best forex trading software in the market? With hundreds of forex brokers offering their services online, choosing the right broker is a task that is no less difficult than creating a successful strategy sometimes. On this page we provide our recommendation , both our and user reviews and also a description of features you should look for in different softwares. The average trader is unlikely to have enough time to check all of the various features of the forex platform packages offered by the brokers and even if he had time, it is not possible to fully evaluate and appreciate the complex features of a good trading platform with a cursory examination. We would like to expedite this process for you by providing these forex trading software reviews from the market's most legitimate and reputable brokers.
Regulated by CySEC & FSB Over 400k Registered Accounts More than 250 Trading Instruments MT4, MT5 and Web Trader Platforms Full ECN Trading Model.
CySEC, FCA MetaTrader4 , MetaTrader5, cTrader, FxPro SuperTrader.
Minimum Deposit $200 Social Trading Platform.
FCA Regulated Multi Asset Trading Platform No Time Frame For Demo Accounts.
Minimum Deposit $100 Leverage 400:1; Dedicated Account Manager;
Authorized and Regulated by FCA, ASIC, FSB, CySEC STP/ECN services ensure no slippage or re-quotes – scalping allowed; ECN Real Raw Spreads, 0.2 EUR/USD 1 Million GBP Insurance by Lloyds of London.
Minimum Deposit $5 Up to 1:500 leverage with micro-lots (0.01 size) available for everyone Scalping, hedging, trading on the news, and EAs are permitted at OctaFX.
CySEC & ASIC regulated Clients can trade currencies, metals, energy and agricultural commodities, Indices and Options 50% FTD Bonus! (non EU Traders only)
CySEC, FSB MetaTrader4 platform Proprietary debit card for quick withdrawal applications!
No Minimum Deposit FCA & ASIC Authorized and Regulated; Founded in 1996 with HQ in Toronto, CA;
CySEC, FCA MetaTrader4 platform $30 + Deposit Bonus up to $5,000 (t&c apply)
FCA, BaFin, CMB & KNF.
No Minimum Deposit Founded in 1996 and headquartered in London; Daily s with market commentary and analysis get you started for each trading day;
FSB MetaTrader4 & Sirix platforms.
Minimum Deposit $100 Leverage Up to 500:1 Accounts may be individual, joint, or corporate, with options for traditional or ECN type pricing;
ASIC Regulated PAMM Accounts Available Phone and Live Chart Support.
CySEC Regulated Covers more than 50 currency pairs.
Regulated by CySEC, BaFin, FCA, ACP and MiFID BONUS : $4 cashback per lot traded till the end of the year.
Regulated by ASIC & FCA. Minimum deposit is $250; Asset choices include forex pairs (35) and CFDs (10 indices, 2 metals, 2 oil, and the VIX and USD Index);
FCA, ASIC & CySEC FXGiants has a proprietary interface to make its account funding process easier, fast and secure.
FCA City Index is well established and a trusted forex broker.
Order slippage on stop losses is generally minimal;
Well Established Over 700 Employees.
Regulated by CySEC Trading Academy includes extensive support for all levels of traders, from basic training videos to discussions on advanced trading strategies;
MFSA regulated Minimum deposit $100 No extra commissions.
Regulated by CySEC; Minimum deposit is $100; 367+ asset choices ;
Regulated by CySEC “No Dealing Desk Execution, no slippage, no delays” “Trading support and account management for traders of varying experience levels”
CySEC regulated; Tight spreads as low as 0.2 pips; Good beginner support;
Forex pairs and CFD trading; Tight spreads as low as 1.2 pips; Over 130 assets: Forex pairs (83), Indices (23); Commodities (18); and Treasuries (7);
FCA regulated CopyMaster social trading platform.
Regulatory compliance is under the auspices of the FCA in the UK, the SFC in Hong Kong, the DFSA in Dubai, and by way of the MiFID for the European Union. Up to $5,000 Welcome Bonus (T&C apply)
ASIC regulated Minimum deposit $100 Withdrawal requests approved within 24 hours.
*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.
Read our reviews of more forex brokers that did not make our top list above:
Want to be featured on this broker list? Send an to brokers[]forexfraud.
*Broker offers variable spreads which are subject to fluctuating market conditions. Spreads tend to be tight during times of deep liquidity but can also widen significantly during times of low liquidity.
Finding the Best Forex Trading Software - FAQ.
Forex trading software intended for the personal forex trader comprises a rapidly-growing segment of the forex industry. A number of different types of forex trading software have found their way into widespread usage among personal forex traders.
Common forex trading software types include:
Trading Platforms - allow for the manual management and execution of forex trades.
Technical Analysis Software - provides charts of historical exchange rates and technical indicators.
Trading Signal Generators - provide recommended levels at which forex traders can initiate and close out positions; and.
Automated Forex Trading Software or Forex Robots - execute trades automatically based on a pre-programmed trading algorithm.
How do you go about finding the best forex trading software? Well, perhaps the best idea would be to download a few representative programs and try them out within their return period to see what works best for your needs. If the software does not suit your purposes well, then submit a refund request. Another way to do some advance research on forex trading software would involve reading online product reviews and discussion forum postings from users of the software.
To assist you further in the process of finding the best forex trading software, the FAQ terms defined below provide a useful list of items that you can take into consideration when shopping for forex trading software online.
Forex Trading Platforms.
In general, forex trading platforms offer their users the ability to manually enter and execute forex trades with an online forex broker. They generally require a reliable Internet connection to operate efficiently, and if they require a software download, they usually run on Windows-based computers.
More advanced trading platform features might include: the ability to manage multiple trading accounts, charting functionality, and algorithmic trading support with back-testing capabilities.
Forex Charting Software (Technical analysis software)
Forex charting software can encompass a variety of computer programs that facilitate the review of foreign exchange rates using technical analysis methods. The more basic programs of this type will usually allow you to plot the progress of exchange rates over time for several time periods, to overlay some of the more popular technical indicators like RSIs and Moving Averages, and to draw trend lines.
More sophisticated charting software generally offers some support for traders using Elliot Wave Theory to analyze exchange rate movements that would include calculating Fibonacci retracement and projection levels. Additional advanced forex charting software features might include: more advanced line-drawing options that include channels and Gann lines, computing and displaying Pivot Points, as well as providing a wider range of increasingly-complex technical indicators.
An even higher level of charting software often includes some form of pattern-matching algorithm that identifies forming chart patterns, along with their trigger points and measured move objectives. Other software based on Elliott Wave Theory might count wave progressions.
Forex Signal Generating Software.
Forex signal generating software or forex signal generators generally do not trade automatically for a user. Instead, they provide levels at which a trader can enter the market and usually have a means by which to alert the trader to such opportunities.
Such signal generators also usually provide suggested stop-loss and take-profit levels so that the trader can appropriately try to manage any losses or gains on any positions they take based on the signals generated by the software. Please note that there is no guarantee that a stop order is filled at the stop price and the same caution applies to these products as the robots.
Automated or Algorithmic Trading Software.
Automated trading software operates according to a pre-defined trade plan or algorithm without the need for manual intervention. They also sometimes go by the name of Expert Advisors or EAs and often run as such on the popular MetaTrader4 trading platform. The so-called forex trading robots available on the commercial forex market generally fall into this category, as do personalized trade plans that traders program or have programmed themselves.
Often, this automation helps traders by taking the emotional and discretionary component out of trading a particular system, and once set up, they can also help a trader save considerable time. Furthermore, these systems can sometimes offer assistance to beginning traders who wish to learn how to trade like experts.
Forex Trading Robots.
Forex trading robots make up one of the main types of automated trading software currently available to personal forex traders. Most of them install quickly and run as Expert Advisors on the popular MetaTrader 4 trading platform. Many of these robots are scams and even if they are not, they don't live up to the promises they make in the sales pitch. In general, stay away from this type of forex products, but if you do consider using one, be very careful and do not trust the historical performance.
Other things to watch out for with forex trading robots is that their vendors often provide profitability numbers based on back-tested trading results over periods for which the robots are optimized to perform well. This means that future trading results might differ substantially, and usually do.
It therefore pays to test such robots in a demo account before setting them trading on live funds. Also, seek out unbiased Internet reviews and check online discussion forums for user comments about any forex trading robot software you might be considering buying.
Furthermore, since most of these forex software products sell via Clickbank, you will usually have 60 days to return them for your money back if you are dissatisfied with their performance. Be sure to have done your testing by then in case you need to take advantage of this offer.
In other words, be really careful and do your research - most of these products are not what they say they are!
Different features to look out for in these softwares.
Purchase and Refund Policy.
Most forex trading software available for sale and download online comes with a satisfaction guarantee. While terms of such guarantees do vary and should be checked before purchase, this usually means that you just need to contact the vendor or sales agent to request a refund if dissatisfied for any reason.
Many forex trading software products sell online via Clickbank which generally offers a standardized 60-day money-back guarantee for software sold via its secure online interface. Nevertheless, requesting too many refunds can get you into trouble with them, so keep that in mind when shopping.
Just about all forex trading software intended for use by personal forex traders will provide a download option. Sometimes you can purchase CDs containing the software or have it sent via an e-mail attachment, but most often a download link will be provided once you pay for or give the required information necessary for the forex trading software provider to permit you to download the software.
Clicking on this link will usually start the transfer of a working version of the software from the Internet down to your personal computer. This download process can take anywhere from a few seconds up to an hour, depending on the size of the program and the speed of your Internet connection. You will also want to scan any downloaded software for viruses using your anti-virus software, and you may need to activate it in some way. Just follow the provided directions, and contact customer support if problems arise.
Also, most forex trading software is written to run on personal computers running a relatively recent version of Windows. You will want to keep that in mind when looking around for forex trading software in case you do not have a compatible operating system or emulator available on your computer.
If you do not have the ability to run Windows-based software, then be sure to check with the software product vendor to make sure your operating system is supported and how.
Software Updates.
Many of the higher-end forex trading software products will provide free updates to the software for life or for a specified time. These updates can be important because they might correct existing problems or provide new and useful functionality.
Having software updates included in the cost of software can therefore be a valuable feature. Most software updates are either installed automatically by the software or require a new version of the software to be downloaded from the Internet and manually installed on your computer.
Online or Web-Based Platforms.
Online or web-based trading platforms remove the download time factor and possible installation frustration out of running forex trading software. To use most online platforms, you just need to log in using a username and a password you have chosen to maintain your information's privacy.
The main advantage of this type of trading platform is that you can generally use it anywhere you can get access to an Internet connection and compatible Web browser. They also permits use by operating systems other than Windows, which can really help Apple Mac OS and Linux users get started trading forex.
Client-Side Platforms.
In general, client-side platforms consist of those forex trading platform products which require that the software be downloaded onto the trader's personal computer or onto a remote server that the trader then pays a fee to use space on and access. This term is often used to contrast such downloaded platform installations with web-based forex trading platforms.
Data Security.
When you need to access or provide personal and private information over the Internet, such as credit card numbers, bank account data and trading account information, the security of your data from unwanted prying eyes who might misuse it becomes paramount. In addition, if you store key data online, you will want that information to be is backed up regularly by the host.
Make sure that your forex trading software, especially if web-based, and your forex broker use appropriate data security measures to protect your data. These might include operating duplicate data farms and using SSL-encryption technology to protect any personal data entered into online forms.
Real Time Exchange Rates.
The best forex trading software displays colse to real-time exchange rates that change along with the market as it ticks up and down over time. Naturally, the best type of real time exchange rate is one you can deal on. This way, when you go to enter a trade or an order using your forex trading platform software, you do not get surprised about where the market really is trading.
Remote Servers.
Remote servers provide a useful service for those running downloaded or client-side forex trading platforms. This is especially the case when they require around-the-clock market-monitoring and execution capabilities, which can be essential for running an automated forex robot or trading algorithm profitably.
Most remote servers charge a fee for both hosting the forex trading software in its storage space and for allowing the software to use its always-on Internet connection to execute trades through. Such services usually offer a very high degree of reliability in terms of providing 24/7 Internet access to software installed on their servers.
Trading Interface.
The trading interface is what the user of the forex trading software interacts with in order to execute forex trades. Such an interface needs to be both ergonomic and generally acceptable for your purposes. Most trading interfaces can be customized, but to what extent generally depends on the software. Adjusting window placement and display colors are common trading interface changes that most platforms permit.
Technical Indicators.
Many forex trading platforms provide a built-in charting capability with the most common technical indicators. One or more of these indicators are used by technical analysts when determining how to trade the forex market, and also in generating objective trading signals. If you need to use a particular technical indicator for your trading strategy, make sure that any platform under consideration includes this indicator.
Customer Service and Support.
Once you purchase or decided to use a particular forex trading software package, you will want to make sure that it provides a suitable level of customer service and support just in case problems arise in its use. This becomes especially important for beginners who do not know how to use computers well or how to trade forex, or both.
Naturally, if a software package is provided free of charge, you might reasonably expect that less customer support will be offered. Also, you will probably want a greater degree of support to be available for essential software like your trading platform.
User Manuals.
Most forex trading software packages come with an explanatory Users' Manual often in the form of a separate PDF document or incorporated into a help function within the software itself. This manual should provide you with all the information you need to get started using the software, as well as how to use all of its more advanced features. The manual should also provide troubleshooting information, as well as who to contact in case additional support is required.
Instructional Videos.
Forex trading software packages increasingly come with helpful instructional videos that can be downloaded or played using your Internet browser. These videos usually contain screen shots of the software being used along with any audio or text necessary to describe how the software should be used and for what purposes.
News Feeds.
Forex trading platforms often provide access to high-quality news feeds from professional forex market information sources that might include Reuters, Associated Press, Bloomberg or Telerate. Check to see that the news your trading platform provides is suitable for your needs, especially if you have a strong interest in trading based on fundamental factors.
Now we want you to contribute with your experiences from forex softwares, give us your reviews or ask us to review a software that you miss in the above list. Give your comment below!
Forex trading for beginners.
Trading currency in the foreign exchange market (forex) is fairly easy today with three types of accounts designed for retail investors: standard lot, mini lots and micro lots. Beginners can get started with a micro account for as little as $50.
Before you start jumping in you should familiarize themselves with the market and terminology of the forex market, and if you've already been trading stocks online it should be easy to get started.
Below is a list of terms you should learn.
PIP: The smallest price change that a given exchange rate can make. Since most major currency pairs are priced to four decimal places, the smallest change is that of the last decimal point. A common exception is for Japanese yen (JPY) pairs which are quoted to the second decimal point.
BASE CURRENCY: The first currency quoted in a currency pair on forex. It is also typically considered the domestic currency or accounting currency.
CROSS CURRENCY PAIR: A pair of currencies traded in forex that does not include the U. S. dollar. One foreign currency is traded for another without having to first exchange the currencies into American dollars.
CURRENCY PAIR: The quotation and pricing structure of the currencies traded in the forex market: the value of a currency is determined by its comparison to another currency. 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.
QUOTE CURRENCY: The second currency quoted in a currency pair in forex. In a direct quote, the quote currency is the foreign currency. In an indirect quote, the quote currency is the domestic currency. This is also known as the "secondary currency" or "counter currency".
Now that we've reviewed basic terminology, let's look at some of the differences between trading stocks vs. currencies. In currency trading you are always comparing one currency to another so forex is always quoted in pairs. Sometimes authors of currency research will refer to only one half of the currency pair. For example if an article is referring to the euro (EUR) trading at 1.3332 it's assumed the other currency is the U. S. dollar (USD).
When looking at the quote screen for the first time it may seem confusing at first, however, it's actually very straightforward. Below is an example of a EUR/USD quote.
The quote example shows traders how much one euro is worth in US dollars). The first currency in a currency pair is the "base currency" and the second currency is the "counter currency" or secondary currency.
When buying or selling a currency pair, the action is being performing on the base currency.
For example traders bearish on euros, could sell EUR/USD. Now, when selling EUR/USD, the trader is not only selling euros but is also buying US dollars at the same time. Thus the pair trade.
Let's say that you sell the EUR/USD at 1.4022. If the EUR/USD falls, that means the euro is getting weaker and the U. S. dollar is getting stronger. You might have also noticed the quote price has four places to the right of the decimal. Currencies are quoted in pips. A pip is the unit you count profit or loss in. Most currency pairs, except Japanese yen pairs, are quoted to four decimal places. This fourth spot after the decimal point (at one 100th of a cent) is typically what traders watch to count "pips".
Every point that place in the quote moves is 1 pip of movement. For example, if the GBP/USD rises from 1.5022 to 1.5027, the GBP/USD has risen 5 pips.
Now depending on the lot size (standard, mini, micro) the monetary value of a pip can vary according to the size of your trade and the currency you are trading.
The most common lot size is to trade in increments of 10,000 (mini). A lot size of 10,000 for the EUR/USD is worth $1.00 per lot. If you were trading 3 lots or 30,000, each pip is worth $3 in profit or loss. A full size lot, or standard lot, is 100,000 where each pip is worth $10, and a micro lot size is 1,000, were each pip is worth $0.10.
Some currency pairs will have different pip values. Be sure to check with your broker.
One of the nice things about trading currencies is there is no commissions. Looking at the quote image above, notice the small number of pips between the two quoted currencies: the difference in prices is 2.5.
This is known as the spread. The spread is how the broker makes their money and acts similar to the bid/ask in stock trading. Not all spreads are created equal. The spread differs between brokers and sometime the time of day can cause volume to be light and the spread to increase at some brokers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of NASDAQ, Inc.
Forex Trading Beginners.
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System Requirements.
Additional info.
Approximate download size.
Age rating.
Access your browser.
Use an anonymous Microsoft account.
Use your device network services.
Get this app while signed in to your Microsoft account and install on up to ten Windows 10 devices.
The product developer believes this product meets accessibility requirements, making it easier for everyone to use.
English (United States)
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All user reviews.
I really enjoyed using this app. The quizzes were very informative. Definitely will continue to use in the future.
One person found this helpful.
My favorite forex app on windows store! User experience is just amazing with multi language support so I can easily switch to local language. With Go Forex I have learn about forex in no time with available turbo course at start, also can test those my skills with quiz from Go Forex app which is very helpful for beginner. I am very happy with information about different stock exchanges and timer feature.
3 out of 5 people found this helpful.
The app doesn't even work!
One person found this helpful.
Good app.. 100% recomended.
Forex simplifiled, 100% recommend!
Great and easy to use app!
Doesn't work.
Most of the elements ask for a new app to be installed and windows store mark them as unsafe.
Translate to English.
Дякуємо, що робите покупки в Магазині Microsoft для такої мови та країни/регіону: United States - English.
Шукаєте сторінку Магазину Microsoft для такої мови та країни/регіону: Ukraine - українська?
Перекласти на українську.
You are shopping Microsoft Store in: United States - English.
Are you looking for Microsoft Store in: Ukraine - українська?
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