Click & Earn Money: http://www.englishdl.com/bestForex
Best Forex Trading Strategies And Best Forex Trading For Beginners To Earn Thousand Dollars A Day 2015
In this video will Help You understand more about Forex Trading For Beginners with lots of strategies and secrets, you want to win in trading forex at first, you should understand clearly about these rules, then you have to practice so much and the last, you have to have some tips to win Forex. Let watch the video and you will understand more about these tips
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.