Who are you trading with? Is the forex broker a legitimate company? Can you trust it? Unlike Batman in the story from the previous lesson, you’re not going to know who you are trading with. And even if you did, that doesn’t mean you should blindly trust them. Do not trust Spider-Man. He stole my money….
What is margin? When trading forex, you are only required to put up a small amount of capital to open and maintain a new position. This capital is known as the margin. For example, if you want to buy $100,000 worth of USD/JPY, you don’t need to put up the full amount, you only need to put up a…
In your trading platform, you will see something that says “Unrealized P/L” or “Floating P/L” with green or red numbers beside them. In this lesson, we explain what Unrealized P/L and Floating P/L are. When trading, there are actually two different types of “profit or loss”, also known as “P/L”. Both are important. Let’s discuss the difference between the…
What does “Account Balance” mean? In order to start trading forex, you need to open an account with a retail forex broker or CFD provider. Once your account is approved, then you can transfer funds into the account. This new account should only be funded with “risk capital”, which is cash you can afford to lose. The “Account…
The biggest appeal that forex trading offers is the ability to trade on margin. But for many forex traders, “margin” is a foreign concept and one that is often misunderstood. Like Bob. Bob sure knows his fried chicken and mashed potatoes but absolutely has no clue about margin and leverage. Margin trading gives you the ability…
It’s not just the stock market. The forex market also boasts of a bunch of advantages over the futures market, similar to its advantages overstocks. But wait, there’s more… So much more! Liquidity “Mr. Futures, our short shorts look cool!” In the forex market, $6.6 trillion is traded daily, making it the largest and most…
There are approximately 2,800+ stocks listed on the New York Stock exchange. Another 3,300+ are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies? With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs. …
There are approximately 2,800+ stocks listed on the New York Stock exchange. Another 3,300+ are listed on the NASDAQ. Which one will you trade? Got the time to stay on top of so many companies? With forex, there are dozens of currencies traded, but the majority of market players trade the seven major pairs. …
There are many benefits and advantages of trading forex. Here are just a few reasons why so many people are choosing this market: No commissions No clearing fees, no exchange fees, no government fees, no brokerage fees. Most retail forex brokers are compensated for their services through something called the “spread“. No fixed lot size In…
At the end of World War II, the whole world was experiencing so much chaos that the major Western governments felt the need to create a system to stabilize the global economy. Known as the “Bretton Woods System,” the agreement set the exchange rate of the US dollar against gold. Which allowed all other currencies to…