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Forex With Questions

It is Important for You to Learn the Basics Before Starting Trading.

  • What is Forex Trading?
    Forex or foreign exchange market refers to the global currency trading market. It is the largest and the most liquid financial market across the globe. Trading forex involves trading currencies in pairs on a floating exchange rate, AUD and USD.
  • What are Currency Pairs?
    Base currency and quote currency together make up a currency pair. The term is used to price coins against each other. Conventionally, currency pairs are reflected in abbreviated form, separated by a slash. EUR/USD refers to a currency pair in which the euro is the base currency, and the U.S dollar is the quote currency.
  • What is a ‘Lot’?
    The number of currency units a person wishes to buy or sell is many. One lot comprises 100,000 units of currency. Currency pairs are traded in lots which can also be mini, micro or nano in size. Mini lot equals 10,000 units while micro and nano equal 1000 and 100 units.
  • What is a PIP?
    PIP denotes ‘percentage in points’. The term means the minor incremental move that an exchange rate can bring. If the exchange rate had been 1.4510 and increased by one pip, the exchange rate would be 1.4511.
  • What does Long Position Denote?
    A long position is when a trader buys the base currency to sell it at a higher price. A long post is when a trader opens a trade to sell the base currency in anticipation that it will further depreciate.
  • What does Short Position Denote?
    When a seller decides to sell the security first to repurchase it later at a lower price, the situation is known to be a short position. Quick work, in other words, means selling a currency with the hope of a future decline in the market price. It is expressed In terms of the base currency.
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