Posts Tagged ‘tutorial’

Random video


Trading Commodities | Forex Education — Part 7

In this video, you will look at trading gold and oil. Gold is represented as XAU/USD and oil as Oil/USD. Here the US dollar is the counter currency. Gold is represented in ounces and oil in barrels. There are certain major currency pairs which are closely correlated with gold. They are even more closely correlated with the commodity currencies. Consider an example. You have the XAU/USD chart on the left and the EUR/USD […]

Major & Minor Pairs | Forex Education — Part 6

This is part 6 of the series. Major pair: Some examples of major currency pairs include EUR/USD, GBP/USD, USD/JPY, etc. These currency pairs contribute for a huge volume in the forex market and are also heavily traded. These pair experience high volatility and brokers low spreads for these pairs. These pairs are easier to trade compared to the minor pairs. Commodity currencies: Some examples include AUD/USD, NZD/USD USD/CAD, […]

What Is Fundamental Analysis | Forex Education — Part 5

This is part 5 of the series. Fundamental analysis is as important as technical analysis in forex trading. It gives you an idea of whether a currency will appreciate or depreciate in value over time. It helps you assess the strength of an existing trend or predict a reversal is going to happen. In fundamental analysis, you can focus on central bank meetings and their monetary policy to gauge the economy of the country. For example, when the Fed lowers […]

What Is Technical Analysis? | Forex Education — Part 4

This is part 4 of the series. With technical analysis, you will be focusing on trends, candlestick patterns, and technical indicators to find high probable low risk trading opportunities. You need to be able to identify an existing trend. An uptrend consists of higher highs and higher lows. A downtrend is made of lower highs and lower lows. You get a clear picture of a trend by drawing a trendline connecting two consecutive lows […]

Pip | Lot | Order — Forex Education — Part 3

This is part 3 of the series. Pip: A pip represents the measure of a change in the exchange rate of a currency pair. For example, consider that the EUR/USD pair is trading at the rate of 1.1295. Here, the fourth digit after the decimal point represents the pip. If the exchange rate increases to 1.1296, then the rate has increased by 1 pip. However, for yen related pairs, it is represented by the 2nd digit after the decimal point. Lot: […]

Margin & Leverage | Forex Education — Part 2

This is part 2 of the series. Margin and leverage are two important features in forex trading. Margin: Margin is like a loan offered to you by your broker. It is specified as a percentage. It is the amount allocated for your open position from your trading capital. If the position goes in loss, then you need to allocate more margin to cover the loss. You can either close your trading […]

Why Should You Trade Forex? | Forex Education — Part 1

Trading forex has a number of advantages. Some of them are listed here below. 1. Liquidity: Forex is the largest financial market in the world with a daily average volume of 5.3 trillion US dollars. So, the forex market has a much larger volume compared to stock market and the futures market. Hence, you can enjoy lower spreads and commissions from your broker. Also, the market trades 24 hours and 5 […]

What Is a Swap? — Learn Forex in 60 Seconds — Part 19

This is part 19 of the series. Swap refers to interest paid or earned from trading positions which are kept open overnight. You have two types of swaps. Swap long is used for long positions and swap short is used for short positions. For each financial asset, swaps are part of the contract specification. Consider an example. Assume that you take a 1 lot short position in the EUR/USD pair. […]

What Is Stop Out? — Learn Forex in 60 Seconds — Part 18

This is part 18 of the series. Stop out is a level set by the broker, at which the losing positions are automatically closed. This is done to free up the margin. You can see this information on your broker's website. Once your open positions reach the margin level, you get a margin call from your broker to close your losing positions. If you do not close and experience […]

What Is Margin Call? — Learn Forex in 60 Seconds — Part 17

This is part 17 of the series. Margin call is a notification from your broker to inform you that more money is needed to be allocated for your open positions, if the losses continue to grow. You can either close your existing position to free up the margin or add more money to your trading account. It is represented as a fixed percentage set by your broker. You can find […]