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Join our community for regularly Updated news and trading articles,and a community forum at our official Telegram Channel , Join NOW at : t.me/tradeshala_India
No, we don’t, we will pay stipend instead. But, if you happy with our Work you can always invite us for a coffee.
The courses are designed For those who want to Learn how international trading works. So, we teach you from the foundation level That should also be understood by a NOVICE
General Trading Questions?
A currency pair consists of a base currency and a quote currency (or counter currency). It is a way to display and price one currency against another.
Currency pairs are conventionally shown as two abbreviated currency names, separated by a slash. For example, with the” EUR/USD” currency pair, the euro (EUR) is the base currency and U.S. dollar (USD) is the quote currency.
The major currencies include the euro, U.S. dollar, British pound sterling, Canadian dollar, Swiss franc, Japanese yen, Australian dollar, and New Zealand dollar.
Examples of minor currency pairs include EUR/GBP, EUR/AUD and GBP/JPY.
The most actively traded crosses are derived from the euro (EUR), Japanese yen (JPY), and the British pound sterling (GBP).
For example, if an exchange rate was previously 1.2510 and increased by one pip, the exchange rate will be 1.2511.
The standard size for a lot is 100,000 units of currency. There also a mini, micro, and nano lot sizes that are 10,000, 1,000, and 100 units respectively.
For example, if you are in a long EUR/USD position, and you now want to exit right now, the bid price is the price you will accept to get out of the trade.
For example, if you want to open a new trade and go long EUR/USD, the ask price is the price you will pay to buy EUR/USD.
The bid is the price in the market that a buyer will pay, and the ask is the price a seller is willing to accept.
For example, the USD/JPY bid/ask spread is 110.00 / 110.02. Currency pairs that are less actively traded have wider spreads.
For instance, if EUR/USD traded at $.1510, and the next trade occurs at a price above $1.510, EUR/USD is on an uptick.
For example, if EUR/USD traded at $.1510, and the next trade occurs at a price below $1.510, EUR/USD is on a downtick.
Slippage occurs when you wish to enter the market at a certain price, but due to the extreme volatility during these events, you actually get filled at a far different price.
Slippage is the difference between the expected fill price and the actual fill price. If the actual fill price is better than the expected fill price, this is referred to as “positive slippage “. If the actual fill price is worse than the price requested, this is known as “negative slippage “.
Traders usually experience negative slippage in highly volatile markets such as during news or economic releases. This is why you should be careful when trading the news.
For example, if you “long EUR/USD “, this means you are buying the euro, and selling the U.S. dollar. The euro (EUR) is the base currency and the U.S. dollar (USD) is the quote currency.
For example, if you “short EUR/USD “, this means you are selling the euro, and buying the U.S. dollar. The euro (EUR) is the base currency and the U.S. dollar (USD) is the quote currency.
For example, if you are “bullish” on the Japanese yen (JPY), it means you think the yen will strengthen and its price will go up.
For example, if you are “bearish” on the Japanese yen (JPY), it means you think the yen will weaken and its price will go down.
The use of leverage allows traders to trade in bigger sizes allowing higher potential return (and losses) than otherwise would have been possible.
Since every currency trade involves borrowing one currency to buy another, interest rollover charges are part of forex trading.
Currency prices are affected by multiple economic and political factors, like economic growth, interest rates, inflation, and political stability. You can learn more by reading our lessons on Fundamental Analysis.
Governments may also try to directly influence the value of their currencies, either by buying up their domestic currency on the market in an attempt to raise the price or by increasing supply of their domestic currency in an attempt to lower the price. This is known as central bank intervention.
Volatility is used to measure the amount by which price is expected to fluctuate over a given period.
Volatility is something that that can be used to find potential breakout trade opportunities and improve placement of stop losses.