Introduction to Forex

The retail "Forex", market is an off-exchange retail foreign currency market where the participants are able to buy, sell, exchange and speculate on currencies. Essentially, the process of exchanging one currency for another is a simple trade that is based...

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Understanding Forex Pricing

Most currency transactions involve the "Majors", consisting of the British Pound (GBP), Euro (EUR), Japanese Yen (JPY), Swiss Franc (CHF) and the US Dollar (USD). Many traders add the Canadian Dollar (CAD) and the Australian Dollar (AUD) to this...

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Understanding Margin

In the Forex market the term margin is most often used when referring to the amount of money required to open a leveraged position, or a contract in the market. It may also be used to describe the type of account, i.e. Forex margin account; meaning that an...

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Contract Sizes & Margin Calls

Each standard lot traded in the Forex market is a $100,000 (of the base currency) contract. In other words, when trading one lot in a standard account, a trader is essentially placing a $100,000 trade in the market. Without leverage, many investors...

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Majors, Crosses & Pips

Established in 1947, ISO established a standard for country and Forex currency pair abbreviations. Since foreign currencies are quoted in terms of value of one currency against another, a Forex currency pair consists of an acronym for both currencies...

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Forex vs Other Markets

Investors and speculators using the Internet as an investment tool will find that the Forex market offers several advantages over trading on other markets. *100:1 is the entry leverage value. Brokerages will have margin calls set at different levels, exact...

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Forex vs Stocks

Forex inherently appeals to traders world-wide with its advantages. 24-Hour Trading: One of the foremost advantages of trading Forex is 24-hour trading. Forex is able to trade 24 hours because it isn't traded on an exchange; rather by banks around the globe. Even...

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