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The market in which currencies are traded. Forex is abbreviation for “foreign exchange” and it is usually describes trading in the foreign exchange market by traders. As forex traders, you can buy and sell currencies, precious metals like gold and silver, commodities like oil and try to have your profit out of currency exchange because relative values of different currencies are always changing and It is rare that any two currencies will be identical to one another in value .
Some Forex Terms
Anyone trading forex should know general basic terms to get on board. The terms for Forex trading for beginners are listed below.
There are things that you should know about currency trading in forex market. First of all you will buy or sell currency pairs and you benefit from trading of currency pairs. In forex market, there are many currency pairs that you can trade and it is a Forex trading basics and you need to know it.
A forex pip is representative of the amount of change in the exchange rate of a currency pair. For currency pairs displayed to four decimal places, one pip is equal to 0.0001 is the smallest amount by which a currency pair can change, which is usually $0.0001.
To understood pip forex definition and pips meaning, Forex pips explained by an example, assume that you have bought EURUSD at 1.1024 some days ago and you sell it today at 1.1640. if you reduce 1.1640-1.1024 then you had 616 pip benefit which shows yo...
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