Learn How To Trade Forex
If you are new to Forex – there’s a good chance that you think it’s complicated, only for the super intelligent, and that you’ll have to learn a foreign language to understand it. Luckily, you won’t need any of this and YES – you CAN start from an absolute, know-nothing beginning. Some online forex brokers operate as MTFs, and these can be an interesting solution for traders looking for more of an exchange traded environment to operate in at lower cost than commission hungry regulated exchanges like the Chicago International Monetary Market where currencies can also be traded.
The learning process should always start with basic things to know when it comes to forex trading, like what is a currency pair, how are currency pairs divided, the notion of a pip, why do we need a broker, what trading platforms to be used, and, in general, everything there is to know to start forex trading from scratch.
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As per Investopedia, leverage in trading implies the use of various financial instruments or borrowed capital, such as margin, to increase the potential return of an investment” or in simple words, when you take leverage from your broker for trading purpose that means you are trading with borrowed money or the money you don’t own.
About 5-10% of daily volume is from companies and governments that buy or sell products and services in a foreign country and must subsequently convert profits made in foreign currencies into their own domestic currency in the course of doing business.
Short periods with compressed candlestick bodies indicate that there was very little price movement during the trading period, and what little movement there was had been upwards in the case of a green candlestick body, or downwards in the case of a red candlestick body.
The primary reason the FX market exists is to facilitate the exchange of one currency into another for multinational corporations that need to trade currencies continually (for example, for payroll , payment for costs of goods and services from foreign vendors , and merger and acquisition activity).