By Yongki Andreas
In foreign exchange trading, traders may buy or sell money currency which is traded. Objectively is to get profit from the margin of transaction that you are doing. In the Forex trading, there is word signal that is known as Lot and Pip. Pip is the smallest price increment in a currency. It is often referred to as 'ticks' in the futures markets. For example, in EURUSD, a move from .9015 to .9016 is one pip. 1 Lot has value USD 1000, and 1 Pip for USD 10.
In Forex trading there is two way of transaction in getting profit. One trader can do open buy, or offer to buy, then other trader close the trade with sell it. 'Ask' is known as price at which broker or dealer is willing to sell, same as 'offer'. Price at which broker or dealer is willing to buy is known as 'bid'.
In foreign exchange trading, traders may buy or sell money currency which is traded. Objectively is to get profit from the margin of transaction that you are doing. In the Forex trading, there is word signal that is known as Lot and Pip. Pip is the smallest price increment in a currency. It is often referred to as 'ticks' in the futures markets. For example, in EURUSD, a move from .9015 to .9016 is one pip. 1 Lot has value USD 1000, and 1 Pip for USD 10.
In Forex trading there is two way of transaction in getting profit. One trader can do open buy, or offer to buy, then other trader close the trade with sell it. 'Ask' is known as price at which broker or dealer is willing to sell, same as 'offer'. Price at which broker or dealer is willing to buy is known as 'bid'.
Foreign exchange trading itself is open for European, Asian, and American market. Traders usually use symbol and trading terminology when doing the currency pair trading. For Euro and US Dollar currency pair, often use EURUSD symbol or called 'Euro'. USDJPY or 'Dollar Yen' is known for US Dollar and Japanese Yen currency trading pair. 'Cable' or GBPUSD is referred to British Pound and US Dollar trading currency pair. This terminology and symbols are needed to make the trading more efficient and efficient. It is also help traders, brokers, or dealers avoid the misunderstanding when the trading process happens even in very quick time.
Forex will be so easy if you know the best technique.
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