times, or 100:1. On a 5 decimal place currency pair a pip.00010. Common Trading Styles Technical Analysis A style of trading that involves analysing price charts for technical patterns of behaviour. Before trading currencies, an investor has to understand the basic terminology of the forex market, including how to interpret forex"s and calculations. A variable spread will condense and widen as market conditions and liquidity change. Limit Order An order to buy or sell at a pre-specified price level. This is calculated as follows for the MetaTrader 4 platform: Equity / Margin. An order stays in the market until it is either filled or cancelled. Part 2: Forex Trading Terminology, part 3: Long or Short? Pip Value The value of a pip. Slippage often occurs in fast moving and volatile markets, or where there is manual execution of trades.
Forex Trading Terminology » Learn To Trade The Market
Virtual Private Server (VPS) A VPS is used to keep the Meta-Trader 4 platform running even if the trader exits the program. It is designed to be read in chronological order, starting with the most simplest terms and moving through to some more advanced terms used in the forex market, or you can click on any individual term if you want an explanation of a specific term. Standard Account Trading with standard lot sizes, generally 100,000 units of the base currency. Counterparty One of the participants in a transaction. Margin The deposit required to open or maintain binary trading-robot machine a position. So, whether you buy or sell a currency pair, it is always based upon the first currency in the pair; the base currency. Dollars to buy 1 euro. Forex, trading Isn't a Scam (Alhough It Is Complicated). Fundamental Analysis A style of trading that involves analysing the macroeconomic factors of an economy underpinning the value of a currency and placing trades that support the trader's long or short-term outlook. Common Order Types Market Order An order to buy or sell at the current market price. Thus, at the bid price, a trader can sell the base currency to their broker.