If you are a rookie trader, you may find yourself asking questions such as ‘what is leverage in Forex trading?’ and ‘how can it be useful?’ This article will provide you with answers to these types of questions, together with, a detailed overview of Forex leveraging, its advantages and disadvantages and a list of possible applications and restrictions.
Forex trading for beginners can be especially tough. This is mostly due to unrealistic expectations that are common among newcomers. What you need to know is that currency trading is by no means a get-rich-quick scheme. On this page, you will receive an introduction to the Forex market, how it works, and key terminology, along with the benefits of trading different currencies.
Technical analysis is the study of prices over time, with charts being the primary tool. This is done by comparing current price action with historical price action to identify patterns that can suggest probable future price movement.
Fundamental analysis is the study of the overall economic, financial, political and other factors that represent and quantify the economy in question and can influence a financial instrument.
The spread is the difference between the BID and the ASK price in the market quotes. The ASK price is applicable to a BUY order and the BID price is applicable to a SELL order.
The currency to the left of the slash (“/”) is called the base currency (in this example, the Euro) and the currency on the right is called the quote currency (in this example, the U.S Dollar)