Terms in Forex Activity
For beginner traders, it is better to know the terms in forex in order to understand what is meant by the existing word. You can visit IM Mastery Academy Scam to get an account and start investing in forex. This little explanation of the many terms in forex derived from various sources.
– Brokers (brokers)
Companies that act as liaisons between traders (traders) with world financial markets. Through a broker, a trader can make transactions selling and buying online, instant and real-time. In this broker, a trader opens a trading account, deposit funds, make forex trading transactions and withdraw profits (withdrawal).
– Demo accounts and Real accounts
Before plunging directly in forex trading, you can first test the trading platform of a broker and also test your trading ability on demo account which is usually provided for free by the broker. You can trade with money is not real, profit or loss you do not lose money or get real money. If you are ready to jump in forex trading, just open a real account. Then make the amount of deposit required for later use in the real sale and purchase transactions where the profit earned can be withdrawn from your savings account at the Bank.
Online trading activities are done through a special trading platform. The most widely used as a trading platform by brokers is MetaTrader, commonly abbreviated as MT. The latest version is MT5, but the MT4 version is still a stable platform for now. MT4 can be downloaded through brokerage sites or via MetaTrader sites.
Pair is the currency pairs traded. For example pair EUR / USD, currency pair Euro with US Dollar.
The unit of transaction in forex is called a lot. Standard lot size is $ 100,000 mini lot ie $ 10,000 and micro $ 1000.
Price Interest Points (pips) is the unit used to calculate the rate of change in price or profit and loss calculation. For example: pair EUR / USD has a value of 1.2950 / 1.2951 => Spread 1.2951-1.2950 = 0.0001 or 1 pips.
For every 1 lot trader transaction must have a minimum fund of $ 100,000. This huge amount is certainly very hampering for retail traders who have limited funds. Leverage is a leverage, with a fraction of a capital trader can use 1 lot. For example for leverage 1: 100 then only required capital of at least $ 1000 just for each transaction.