You Need to Know Before Getting Started In Your Forex Journey
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Let's start with Forex
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◼️ Forex Trading
What You Need to Know Before Getting Started
People from all over the world use Forex to exchange different currencies for many different reasons, like buying goods from another country
What You Need to Know Before Getting Started
People from all over the world use Forex to exchange different currencies for many different reasons, like buying goods from another country
Forex trading is the process of buying and selling currencies on the foreign exchange market.
This market is the largest and most liquid financial market in the world, with trillions of dollars traded every day.
Don't forget to Bookmark
This market is the largest and most liquid financial market in the world, with trillions of dollars traded every day.
Don't forget to Bookmark
If you've ever traveled abroad, then you've probably exchanged one currency for another.
But, what if instead of exchanging currency for your vacation, you could exchange it to make a profit?
But, what if instead of exchanging currency for your vacation, you could exchange it to make a profit?
Are you ready to dive in? 🚗
In forex trading, you're buying and selling currency pairs. 📑 💰
A currency pair is simply two different currencies, such as the U.S. dollar and the Euro. 💶
A currency pair is simply two different currencies, such as the U.S. dollar and the Euro. 💶
When you buy a currency pair, you're essentially betting that the value of the first currency will rise relative to the second currency.
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📌 8 MAJOR CURRENCIES📌
AUD -> Australian Dollar
CAD -> Canadian Dollar
CHF -> Swiss Franc
EUR -> Euro
GBP -> Great British Pound
JPY -> Japanese Yen
NZD - New Zealand Dollar
USD -> United States Dollar
AUD -> Australian Dollar
CAD -> Canadian Dollar
CHF -> Swiss Franc
EUR -> Euro
GBP -> Great British Pound
JPY -> Japanese Yen
NZD - New Zealand Dollar
USD -> United States Dollar
The first currency is called the Base currency
The second currency is called the Quote currency.
📍A common currency pair is EUR/USD, which means that you're trading euros for U.S. dollars.
The second currency is called the Quote currency.
📍A common currency pair is EUR/USD, which means that you're trading euros for U.S. dollars.
MOST TRADED PAIRS
Some examples of pairs are:
EUR/USD (euro/U.S. dollar)
USD/JPY (U.S. dollar/Japanese yen)
GBP/USD (British pound/U.S. dollar)
AUD/USD (Australian dollar/U.S. dollar)
Another example is GBP/JPY, which means you're trading British pounds for Japanese yen.
Some examples of pairs are:
EUR/USD (euro/U.S. dollar)
USD/JPY (U.S. dollar/Japanese yen)
GBP/USD (British pound/U.S. dollar)
AUD/USD (Australian dollar/U.S. dollar)
Another example is GBP/JPY, which means you're trading British pounds for Japanese yen.
Most of the currency pairs have specific names they are called.
▪️ The Dollar is sometimes called Greenback.
▪️The Pound is called the Cable.
▪️ The New Zealand Dollar is called the Kiwi.
▪️ The Dollar is sometimes called Greenback.
▪️The Pound is called the Cable.
▪️ The New Zealand Dollar is called the Kiwi.
▪️ The Australian Dollar is called the Aussie.
▪️ The Canadian Dollar is called the Loonie.
▪️ Oil is referred to as the Black Gold.
▪️ The Canadian Dollar is called the Loonie.
▪️ Oil is referred to as the Black Gold.
In forex trading,
we have two prices that make up a currency pair
▪️BID PRICE
▪️ASK PRICE
The BID price is the price at which you can buy a currency pair
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The ASK price is the price at which you can sell a currency pair.
we have two prices that make up a currency pair
▪️BID PRICE
▪️ASK PRICE
The BID price is the price at which you can buy a currency pair
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The ASK price is the price at which you can sell a currency pair.
Let's go into a bit more detail about how the BID and ASK prices work.
When you place a Buy order, you're buying at the ask price,
when you place a Sell order, you're selling at the bid price.
This means that the ask price is always higher than the bid price.
When you place a Buy order, you're buying at the ask price,
when you place a Sell order, you're selling at the bid price.
This means that the ask price is always higher than the bid price.
The difference between these two prices is called the spread, and it's how brokers make money.
◼️ WHAT IS A SPREAD
SPREAD is the difference between the BID and ASK Price.
◼️ WHAT IS A SPREAD
SPREAD is the difference between the BID and ASK Price.
The spread is determined by a number of factors, including supply and demand, liquidity, and the broker's fees.
Conversely, with low liquidity, the spread is usually wider, so it's more difficult to make a profit.
Conversely, with low liquidity, the spread is usually wider, so it's more difficult to make a profit.
📍LIQUIDITY
Liquidity is the amount of trading activity in a currency pair.
When there's more liquidity, it's easier to make a trade because there are more buyers and sellers.
With high liquidity, the bid-ask spread is usually narrower, so it's easier to make a profit.
Liquidity is the amount of trading activity in a currency pair.
When there's more liquidity, it's easier to make a trade because there are more buyers and sellers.
With high liquidity, the bid-ask spread is usually narrower, so it's easier to make a profit.
📍 Volatility is the amount of fluctuation in the price of a currency pair.
The more volatile a currency pair is, the more difficult it is to make a profit.
The more volatile a currency pair is, the more difficult it is to make a profit.
Leverage
Leverage is essentially borrowed money that traders use to increase their buying power.
One other thing we could include is the different types of forex orders.
🔸Market Orders
🔸Limit Orders
🔸Stop loss Orders
Leverage is essentially borrowed money that traders use to increase their buying power.
One other thing we could include is the different types of forex orders.
🔸Market Orders
🔸Limit Orders
🔸Stop loss Orders
A margin call is when a trader's account balance falls below a certain level.
The amount of money a trader needs to have in their account in order to make a trade.
The amount of money a trader needs to have in their account in order to make a trade.
PIP or (Percentage in point)
Pips are the smallest unit of change in the value of a currency pair.
Pips are the smallest unit of change in the value of a currency pair.
LOTSIZE
LOTSIZE is the amount/quantity of a trade that you bought or sold.
It's sometimes called your Position size/Trade size
LOTSIZE is the amount/quantity of a trade that you bought or sold.
It's sometimes called your Position size/Trade size
THEY ARE BASICALLY 3 TYPES OF LOTSIZES
STANDARD LOT
MINI LOT
MICRO LOT
Let's note them down...
STANDARD LOT
MINI LOT
MICRO LOT
Let's note them down...
A reminder that even the best strategy best knowledge in the world won't work
➢ if
the trader doesn't have the right mindset, discipline, and patience to learn
RT & Quote
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Follow @Slim_Oraro for more
➢ if
the trader doesn't have the right mindset, discipline, and patience to learn
RT & Quote
Turn ON your Notification 🔔
Follow @Slim_Oraro for more
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