I will try to explain the terms you must know before you start trading forex. important terms that absolutely must be understood. So, from the dictionary that we do not make me read better I just write it here.
The first is commonly called "pip" Pip is the unit commonly used in naming the value of an exchange or commonly referred to as "points". Examples: USD / CHF 1.4235 last week and today its value rose to 1.4245 this means that this pair has increased by 10 pips. Now, understand?
Another thing we need to know is whose name is "leveraged". This more or less synonymous with "margin security" on the stock. Simply put is that if we invested $ 500 so if the unit is subject to leverage 1:100 that means we are given the right by a broker to buy 100 x more than the funds we have. This is called margin collateral or leverage. Each broker has its own leveragenya. In this case, leverage is the possibility of profit / loss becomes larger. And vice versa, small leverage the amount of losses that may occur becomes smaller with the consequence of benefits is also a smaller value.
I prefer the little leverage, because then the risk of smaller losses. If I believed a deal will be profitable, so I can raise the number of lots you can do to trade.
Then next is the "contract size". This is a big factor in the calculation of profit and loss. Fix its value is determined by the government and the 10,000 (ten thousand).
The next thing is "lots" Lot is a unit of the contract on each transaction. So when my transaction, such as buying (buy) EUR against CHF in the value of the unit lots. Again, each broker has their own rules in determining the lot.
These are some simple terms you need to understand, again we remind you when you see the term you do not understand, please open the link dictionary that contains the term Forex Complete Dictionary of terms often used in Forex Trading
The first is commonly called "pip" Pip is the unit commonly used in naming the value of an exchange or commonly referred to as "points". Examples: USD / CHF 1.4235 last week and today its value rose to 1.4245 this means that this pair has increased by 10 pips. Now, understand?
Another thing we need to know is whose name is "leveraged". This more or less synonymous with "margin security" on the stock. Simply put is that if we invested $ 500 so if the unit is subject to leverage 1:100 that means we are given the right by a broker to buy 100 x more than the funds we have. This is called margin collateral or leverage. Each broker has its own leveragenya. In this case, leverage is the possibility of profit / loss becomes larger. And vice versa, small leverage the amount of losses that may occur becomes smaller with the consequence of benefits is also a smaller value.
I prefer the little leverage, because then the risk of smaller losses. If I believed a deal will be profitable, so I can raise the number of lots you can do to trade.
Then next is the "contract size". This is a big factor in the calculation of profit and loss. Fix its value is determined by the government and the 10,000 (ten thousand).
The next thing is "lots" Lot is a unit of the contract on each transaction. So when my transaction, such as buying (buy) EUR against CHF in the value of the unit lots. Again, each broker has their own rules in determining the lot.
These are some simple terms you need to understand, again we remind you when you see the term you do not understand, please open the link dictionary that contains the term Forex Complete Dictionary of terms often used in Forex Trading
