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Education

Forex Trading Terminology

  • Ask price: The price at which a currency is offered for sale.

  • Bid price: The price at which a currency is offered for purchase.

  • Currency pair: A pair of currencies that are traded against each other. For example, the EUR/USD currency pair is the exchange rate between the euro and the US dollar.

  • Forex market: The global marketplace where currencies are traded.

  • Leverage: The ability to control a larger position with a smaller amount of capital.

  • Margin: The amount of money that is required to open a forex trade.

  • Pip: The smallest unit of price movement in a currency pair.

  • Spread: The difference between the bid price and the ask price.

  • Scalping: A trading strategy that involves placing a large number of small trades in a short period of time in order to profit from small price movements.

  • Technical analysis: The analysis of historical price data to identify patterns that can be used to predict future price movements.

  • Trend: A general direction in which the price of a currency is moving.

  • Fundamental analysis: The analysis of economic data and news to identify factors that may affect the value of currencies.

  • Stop-loss: An order that automatically closes a trade if the price of a currency pair moves against you by a certain amount.

  • Take-profit: An order that automatically closes a trade if the price of a currency pair moves in your favor by a certain amount.

  • Trailing stop: A stop-loss order that moves with the price of a currency pair, so that your losses are limited even if the price moves against you.

  • Hedging: A trading strategy that involves taking offsetting positions in different currencies in order to reduce risk.

  • Diversification: The practice of investing in a variety of different currencies in order to reduce risk.

  • Margin call: A notification from your broker that you need to add more margin to your account in order to maintain your open positions.

  • Margin requirement: The amount of money that is required to maintain an open position in forex trading.

  • Swap: The interest that is paid or received when you hold a currency pair overnight.

  • Swap points: The number of pips that are paid or received when you hold a currency pair overnight.

  • Volatility: The degree of fluctuation in the price of a currency pair.

  • Liquidity: The ease with which a currency pair can be bought or sold.

Forex Trading Tutorial

Before you start trading, it is important to understand the basics of forex trading methodology. Here is a basic tutorial on forex trading.

 

  • Choose a broker: A broker is a company that facilitates forex trades. When you trade forex, you are actually placing an order with your broker. There are many different forex brokers available, so it is important to do some research and choose one that is reputable and has a good reputation.

  • Open a trading account: Once you have chosen a broker, you will need to open a trading account. This is where you will deposit your money and place your trades.

  • Fund your account: You will need to fund your trading account before you can start trading.

  • Adviser: Nivi Finserv

  • Place a trade: Once you are our paid Client, you will start receiving our signals. This involves specifying the currency pair/Indices & Comex CFD you want to trade, the amount of money you want to trade, and the type of order you want to place.

  • Monitor your trade: Once you have placed a trade, you will need to monitor it to make sure it is going according to plan. If the trade is not going your way, you may need to close it out.

Forex Trading Tutorial

How to manage risk in the forex market while doing intraday trading? Here is the solution.

  • Use a stop loss: A stop loss is an order that automatically closes your trade at a predetermined loss. This is essential for managing risk, as it helps to limit your losses if the market moves against you.

  • Use a take profit: A take profit is an order that automatically closes your trade at a predetermined profit. This helps you to secure your profits and avoid getting greedy.

  • Do not risk more than you can afford to lose: This is a golden rule of trading, and it is especially important in intraday trading. When you are trading intraday, you are only holding your positions for a short period of time, so you can lose money very quickly if the market moves against you.

  • Limit your use of leverage: Leverage is a powerful tool that can help you to amplify your profits. However, it can also magnify your losses. If you are not careful, you could end up losing more money than you have in your trading account.

  • Have a trading plan: A trading plan is a roadmap for your trading. It should include your risk tolerance, your trading strategy, and your exit criteria. Having a trading plan will help you to stay disciplined and make better trading decisions.

  • Be prepared for the worst: The Forex market is a volatile market, and anything can happen. It is important to be prepared for the worst-case scenario and to have a plan in place if you lose money. 

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