Foreign exchange, or Forex for short, is the “place” where currencies are traded. Currency trading is the exchange of one type of currency for another. In the forex market, currencies are traded in pairs. When a trader buys a currency, he or she is selling...
A point in price – or pip for short – is a measure of the change in the exchange rate of a currency pair. It is the smallest unit of measurement we use when trading currencies. Most currency pairs are measured to five decimal places. For pairs such as...
The Bid price is the price a forex trader is willing to sell a currency pair for.Ask price is the price at which a trader will buy a currency pair. Both of these prices are given in real-time and are constantly updating. So for example, the British pound against the...
A bid-ask spread is the amount by which the ask price surpasses the bid price for an asset in the market. Essentially a spread is the difference between the ask price and the bid price. In other words, it is the cost of trading. For instance, if the Euro to US dollar...
In forex, currencies are always traded in pairs. The first currency is called the base currency and the second currency is called the quote currency. For example, EURUSD, means that the base currency is the Euro and the quote currency is the US Dollar. The quote...
In foreign exchange (Forex or FX) you exchange one currency for another with the intention of making a profit. The “Majors” in Forex are the seven most traded currency pairs. The Majors share certain characteristics that make them more popular for traders....
