A forex broker is a financial company that provides traders with access to the global currency market. Since individuals cannot directly trade in the interbank forex market, brokers act as the doorway that connects traders to buy and sell currencies
In forex trading, margin is the amount of money a trader must deposit to open and maintain a leveraged position.Think of margin as a “good-faith deposit” that your broker holds while your trade is active. It’s not a cost—it’s simply
Leverage in forex trading is a tool that allows traders to control a larger position in the market with a smaller amount of capital. It works like borrowing money from your broker to open trades much bigger than your actual
In forex trading, a lot is a standardized unit of measurement for the volume of a trade, representing a specific amount of currency being bought or sold. The four main lot sizes are standard (100,000 units), mini (10,000 units), micro (1,000
A pip is the smallest whole unit of measurement for a price change in a currency pair, most often equal to 0.0001. For currency pairs with the Japanese Yen, a pip is typically 0.01. Pips are used to calculate profits and
The bid-ask spread is the difference between the highest price a buyer is willing to pay for an asset (the bid price) and the lowest price a seller is willing to accept (the ask or offer price). This spread is a built-in transaction cost for traders
A currency pair is the quotation of two different national currencies in the foreign exchange (forex) market, showing the value of one currency relative to the other. In trading, currencies are always bought and sold in these pairs. The price indicates how much
Forex ( foreign exchange ) trading is the process of buying and selling one currency for another on a global market with the Aim of profiting from exchange rate fluctuations. The forex market is the largest financial market in the
