How does the Forex market work?
The Forex market operates 24 hours a day, five days a week, allowing traders to buy and sell currencies from around the world.
What is a pip?
A pip (percentage in point) is the smallest price movement in Forex trading, typically the fourth decimal place (0.0001) for most pairs or the second decimal place (0.01) for pairs involving the Japanese yen. It measures price changes and calculates profits and losses. For example, if EUR/USD moves from 1.1050 to 1.1051, that's a 1 pip movement.
What is leverage in Forex trading?
Leverage allows traders to control a larger position with a smaller amount of capital, increasing both potential profits and risks.
How do I choose a Forex broker?
Consider factors such as regulation, fees, trading platform, customer service, and reviews when choosing a Forex broker.
What is margin in Forex trading?
Margin is the amount of money required to open a position, typically expressed as a percentage of the full position size.
What is a spread in Forex trading?
The spread is the difference between the bid price (the price at which you can sell) and the ask price (the price at which you can buy).
What is a stop-loss order in Forex?
A stop-loss order is an order to buy or sell a currency pair once it reaches a certain price, designed to limit an investor’s loss.
What is a take-profit order in Forex?
A take-profit order automatically closes a trade when it reaches a specified profit level.
How do I place my first trade?
After picking a broker and making a deposit, you can use terminals like MT4 and MT5 on your mobile/desktop which facilitate placing trades.
You can watch this video to understand the terminals better, as well as the trade placing process: https://www.youtube.com/watch?v=QjdwDLWEWEE
What is a lot in Forex trading and how does it relate to dollar pip value?
A lot is a unit of measurement for the trade size in Forex. Standard lots are 100,000 units of the base currency, mini lots are 10,000 units, and micro lots are 1,000 units. The dollar value of a pip change depends on the lot size.
Example of lot size to dollar pip value:
For a standard lot (100,000 units) in the EUR/USD pair, one pip is worth $10.
For a mini lot (10,000 units) in the EUR/USD pair, one pip is worth $1.
For a micro lot (1,000 units) in the EUR/USD pair, one pip is worth $0.10.
Example trade setup:
If you buy 1 standard lot of EUR/USD at 1.2000 and the price moves to 1.2010, you have gained 10 pips. With a pip value of $10 per pip, your profit would be $100.
What is cryptocurrency?
Cryptocurrency is a digital or virtual currency that uses cryptography for security. It operates on decentralized networks, like blockchain, without relying on central authorities.
How do I buy cryptocurrency?
You can buy cryptocurrency through various crypto exchanges. Create an account, deposit funds, and trade fiat currencies (like USD or INR) for cryptocurrency.
What is Bitcoin (BTC)?
Bitcoin is the first and most well-known cryptocurrency. It operates on a decentralized network and is often called "digital gold" due to its limited supply and potential as a store of value.
What is a blockchain?
Blockchain is a decentralized digital ledger that records transactions across many computers. It is the backbone of most cryptocurrencies, providing transparency and security.
What is Ethereum (ETH)?
Ethereum is a blockchain platform that allows developers to create decentralized applications (DApps) using smart contracts. Its native cryptocurrency is Ether (ETH).
What is a crypto wallet?
A crypto wallet is a tool that allows you to store, send, and receive cryptocurrencies. There are two types:
Hot Wallets (online, like MetaMask or Coinbase Wallet)
Cold Wallets (offline, like Ledger or Trezor)
What is a crypto exchange?
A crypto exchange is a platform where users can buy, sell, or trade cryptocurrencies. Some of the most popular exchanges are Binance, Coinbase and Kraken.
