Foreign Exchange market (Forex, FX, currency market) is an over the counter (OTC) or decentralized global market for buying and selling currencies at current or determined prices. to this item.
An Index is a collection of Stocks in one index, giving a total value on the collective stocks, as the stocks values inside the index fluctuate so does the overall value of the Index itself. to this item.
An Index is a collection of Stocks in one index, giving a total value on the collective stocks, as the stocks values inside the index fluctuate so does the overall value of the Index itself.to this item.
An Index is a collection of Stocks in one index, giving a total value on the collective stocks, as the stocks values inside the index fluctuate so does the overall value of the Index itself.
The Forex market, unlike the stock market, is decentralised with many participants. Until relatively recently, forex trading was largely the exclusive preserve of central banks, large financial institutions, multinational firms, investment managers, hedge funds, insurance companies and brokerage firms. The emergence of the internet, combined with the introduction of technologically advanced retail trading platforms has vastly changed the forex trading landscape, opening up this potentially lucrative marketplace to a growing number of individual retail traders.
Long position when the client is buying the asset and a short position when the client is selling the asset.
Long position - when the client is buying the asset and a short position when the client is selling the asset.
A pip is the smallest unit of change in a financial instrument's price ratio (rate of a currency pair).
Leverage is a consequence of Margin, allowing you to place larger trades on the market. It can help you maximise your returns but also works the same way with losses. Understanding and controlling your leverage is extremely important.
While leverage enables you to control a large amount of capital with a small deposit margin, it may also expose you to outsized negative price movement.
Margin is an amount of the equity in your account delegated as Margin Deposit. Your trade size will determine the amount of margin needed to hold a position open. Your Margin Requirements increase as your Trade Size does.
Swap is a rollover interest for keeping your positions open overnight, that can be both positive or negative.
Some ways to manage your risk during volatile markets is to ensure your account is sufficiently margined at all times. Several precautionary measures are recommended:
1. Monitor the status of your open positions.
2. Specify a stop-loss to limit downside risk.
3. Keep your account funded in excess of your required margin.
A Stop Loss protects you on trades that go against you, and therefore also protects your overall account balance. Markets can be volatile and it is recommended to always use Stop Loss to limit any losses.
The minimum contract size that you can trade is 0.01 of a standard lot which requires around £10.00 margin requirement for most of the instruments, this is also dependant on the leverage which you are trading with. Other products might require higher margins.
Amount of Base Currency * Pips = Value in Quote Currency
Value of 1 pip in EUR/USD= 1 Lot (100 000 units) * 0.0001= 10 USD
Value of 1 pip in USD/CHF= 1 Lot (100 000 units) * 0.0001=10 CHF
Value of 1 pip in EUR/JPY=1 Lot (100 000 units) * 0.01= 1000 JPY
Equity - Margin (used) = Free Margin
(£1,000 - £100.20 = £899.80 Free Margin)
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