Archive for June, 2008

What is Forex?

FOREX is  the Foreign Exchange market. Other names for this market include “retail forex,” “FX,” “Spot FX,” or “Spot.” It is, globally, the biggest financial market. To understand the scope of the FOREX, let’s compare it with another large financial market. Take the New York Stock Exchange for instance. Twenty-five million dollars are traded daily [...]

Leverage, Currency Lots, and Why You Need a Broker

In order to make money trading currency based on increases and decreases of a currency increment as small as pips, only trades involving hundreds of thousands of dollars must be traded. This is where leverage comes in (see our set on “Leverage”). Leverage comes in the form of currency lots. An example of a lot [...]

What is Forex Trading?

You will need to know these forex glossary terms for this set:
A Pair of currencies: a representation of two currencies that are being compared against each other, and essentially will be traded against each other
Base currency: the value on the left of a pair of currencies
Counter currency or quote currency: the value on the right [...]

What is Leverage in Forex Trading?

You will need to know these forex glossary terms for this set:

Minimum Security Margin is the required minimum account balance your account must maintain. It is represented by a percentage of the lot of currency you will trade FOREX online with.
Usable Margin is available money that you have to open new trades/positions or sustain losses [...]