Crosses is the label given to currency pairs that do not involve the USD (Us Dollar). Some of the most traded Crosses include the Euro Japanese Yen which is represented by EURJPY, New Zealand Dollar Japanese Yen which is represented by NZDJPY, British Pound Japanese Yen which is represented by GBPJPY, Euro British Pound which is represented by EURGBP, Euro Swiss Franc which is represented by EURCHF and the Australian Dollar Japanese Yen which is represented by AUDJPY. Just like all currency pair groups, Crosses share similar characteristics that define them and differentiate them from other groups. These characteristics make them riskier to trade than the Majors: they are more volatile, less liquid, more susceptible to manipulation and have a higher sensitivity to sudden shifts in financial or political developments.

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What is your balance?

What is your balance?

Balance in forex refers to the amount of money you have in your trading account. It is very important to remember that your balance does not include any profits or losses you might have from any open positions. If you have open positions, your balance might change...

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What Is your Equity?

What Is your Equity?

Now that we have already covered Balance, it is vital to understand what Equity is. In trading, equity refers to the amount of money a trader has in their trading account (the Balance) plus or minus any profit or loss from open positions. Many traders confuse these...

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What is Free Margin?

What is Free Margin?

Free Margin in forex trading in its simplest definition, is the money in your trading account that is available for trading. It is calculated by using the formula: Free Margin = Equity - Margin (of open positions). Let's look at a relevant example. A trader enters a...

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