Tag: Market
Different lot sizes and calculation of values against lot size
In the Forex market, pips and lot sizes are important concepts used to calculate profits, losses, and position sizes. Let me explain each term and how they are calculated: Lot Size: A lot refers to the standardized trading size in Forex. Different lot sizes are used to determine the position size and the value of…
Read MoreWhat is Spreads
Understanding spreads is essential for traders as it directly impacts their profitability. Lower spreads can enhance trading performance. Spreads in currency pairs refer to the difference between the bid price and the ask price of a currency pair in the Forex market. The spread is typically quoted in pips (You will learn about pips right…
Read MoreCurrency pairs
A currency pair is a quotation of the relative value of one currency unit against another currency unit in the foreign exchange market (Forex). It represents the exchange rate between two currencies and is used to facilitate currency trading. Currencies are always traded in pairs when we trade in Forex. The first currency of the…
Read MoreLeverage and Margin
In Forex trading, leverage and margin are important concepts that relate to the amount of capital required and the potential for amplifying gains or losses. It’s important to know that different brokers may have varying leverage and margin requirements. Here’s a description of each: Leverage:- Leverage is a financial tool that allows traders to control…
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