Forex Currency Trading Basics – A Few Good Info You Need To Learn
So now after this new development of online forex firms, the basic requirement is to have a high speed internet not the bucks. The currency symbols that are used in Forex have three letters in them in which the first two letters show the name of the country and the third letter identifies the name of the currency.
This technique was basically 1 I picked up from a commodity trader inside the late seventies and following trying all sorts of techniques, it’s the 1 I settled on within the mid eighties and have utilised ever given that. It functions on commodities currencies and stock indexes.
To calculate the value of a pip in dollars when the dollar is the base currency, for example USD/CAD, you will need to do one more calculation, which is 0.0001 divided by the exchange rate. Say the exchange rate was 1.1180. 1 pip would be 0.0001 Canadian, divided by 1.1180 gives 0.0000894. So in this case 1 pip would be 0.00894 of a US cent.
This method was simply one I picked up from a commodity trader in the late seventies and after trying all sorts of methods, it’s the one I settled on in the mid eighties and have used ever since. It works on commodities currencies and stock indexes.
The standard unit size of a transaction is a lot. One standard lot is equal to 100,000 units of the base currency, 10,000 units if it’s a mini (kind of trading account), or 1,000 units if it’s a micro(kind of trading account). Some dealers offer the ability to trade in any unit size, down to as little as 1 unit.