Category: 1. Basic interview question

Where Can I Learn more About Forex Trading

Well you’re in the right place to start with. We just finished a post titled: Learn Forex Trading In 30 Days PDF this is our ebook talking about how you can get started in as little as a month! Knowing the answers to some of these top questions about currency trading...
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How Do I Sound Like A Professional Even If I’m A Novice?

Every market and industry have their own vocabulary and the foreign exchange market really is no different. Below are some popular terms that will make you sound like a professional in just about no time: Base currency: first currency cited in a pair Authorised dealer: institution approved to work in the...
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What Is The Carry Trade Strategy?

Being the most prevalent type of trade in the forex market, the carry trade is based upon the principle that every currency has an interest rate. Put simply, the trader invests in the currency with the high-interest rate and finances it with the currency with the low-interest rate. Depending...
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Like In Other Markets, Does Forex Trade In Pairs?

Yes, all currencies are always traded in pairs. Knowing this, traders always know that he/she will always have “more” of one currency and “less” of the other. For example, when trading from EUR/USD, the exchange of euros to dollars would mean that the trader has “less” euros and “more”...
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What Are You Buying And Selling In This Market?

Nothing. In the retail forex trading market, there is no tangible exchange ever. All FX trades exist virtually in a computer and are computed out per market price. So why then does the FX market even exist? To simplify the day-to-day exchange of one currency into another for large...
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What Does Pip Stand For And What Does It Mean?

Standing for percentage in point, pip is the smallest increment or price change that can occur in exchange. In this market, prices are typically cited to this fourth decimal place (1/100th of 1%) and the pip is equal to exactly that. To give an example, a bottle of shampoo at a drugstore...
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Is There Commission In Forex Trading?

To put it simply, no. Unlike the stock market that you’re probably used to, forex trading is a principals-only market. And unlike these exchange and physical-based markets, here firms are called dealers and not brokers. Dealers accept market risk by being the contra party to the investing trade. While...
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How Is The Foreign Exchange Marketplace Differ From The Others?

Currency trading doesn’t take place on a regulated platform like with stocks nor is it controlled by an overarching governing organisation. There are also no clearing houses to assure legitimate trades or an arbitration panel for disputes. All trades are based upon credit agreements. This business which is housed...
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How do I calculate my margin?

Your margin requirement equals the units of the base currency divided by your leverage. Example 1: trade of 1 lot on GBPUSD with leverage of 1:100 1 lot = 100,000 units of base currency, in this case GBP100,000 100,000 / 100 = GBP 1,000 margin requirement. Example 2: A...
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What are buy/sell limit and buy/sell stop orders?

A buy/sell limit order is an instruction to deal if the price moves to a more favorable level than where it’s in the market now. That’s why these orders are sometimes called improvement orders. A limit order is a request to buy at a price lower than the current price or...
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