FX Mini Account

Fx Glossary

CURRENCY PAIRS

Currency pairs are the pairs available to trade.For example in the EUR/USD pair when you open a SELL position it means you sell EUR when at the same time you BUY dollars.

PIP

PIP stands for Percentage In Point. It is equal to 1/100 of 1 percent, or .0001 .
In forex, currency prices are typically quoted to the fourth decimal. For example, if the EUR/USD pair moves from 1.3410 to 1.3420 it has moved by 10 pips. If the EUR/USD increases by 1 full cent in value (from 1.3410 to 1.3510), it has increased by 100 pips.

SPREAD

Spread is the ammount of pips that a broker charges from the traders
when they open a new position.So for example when a broker charges a flat spread at 4 pips that means that if you open a BUY position in the EUR/USD pair at 1.4000 the position will start making profit after four pips on the BUY direction so after the price goes at 1,4004

CANDLE STICKS

Candle Stick is the metirc unit that counts the volatility of a pair in a specific period of time.There are monthly,weekly,daily,and other time period charts that you can use the candle stics as the metric unit in them to see the movement of a pair in the chosen currrent chart.There are two kinds of candle sticks.The ones who count the upward movement and the ones who count the downward movement.How to read the candle sticks:The two different kinds of candle sticks are coloured with defferent colours each.In the candle sticks who count the upward movement, the down edge of the stick shows the point from which the movement started and the uper edge shows where the movement stoped.In the candle sticks who count the downward movement is the way around.If there is a vertical line extended from the one ore both sides(uper and down edges) it declairs the range of the total movement. Learn more about candle sticks

POSITION

A “Position” is when you enter the forex market and trade a currency pair.This action is considered as “opening a new position” ,either BUY or SELL.

HEDGING

“Hedging” in Forex is the ability of a trading system or a platform to allow traders to open BUY and SELL positions at the same pair.Example:lets say you expect a notable movement of the market but you can`t guess the direction.With “hedging” you can open both BUY and SELL positions .

SCALPING

“Forex scalping” is the art of using high leverage and a large number of short term trades to steadily increase an account. Usually, only 1 to 5 pips are targeted for each trade. This type of trading appeals greatly to day traders and those looking to minimize the risk involved in trading currencies. Next to money management, “risk control” is the single most important trait to a surviving (and thriving) currency trader. The small amount of time that is spent in the market limits much of the risk in exposure in comparison to a longer term system. Also, the freedom involved in a speedy forex scalping system in such a liquid market is a “magnet” that drives many traders from other markets to try their hand in currency. A disciplined and steady scalper could seamlessly double or triple an account, and spend only a fraction of the time in the market as a common day trader.