ForEx Resources

Currency Exchange Calculator Section

• Home
• Videos
• Podcasts
• Sitemap

Custom Search

Currency Exchange Calculator Article

This is a selection made from among articles on Currency Exchange Calculator. For a permanent link to this article, or to bookmark it for future reading, click here.

Three Important Forex Concepts For New Traders.

As you enter the world of Forex you will find yourself learning
and using many new concepts that you may not have used or heard
before.



Three of this important concepts that you must understand are
what "Pips" are, What "Volume" is and what you do when "Buying"
and "Selling Short". They may look more like four concepts but
Buying and Selling are like the two faces on the same coin so we
can consider them as a single concept.



Lets first introduce what Pips are. Maybe you have heard or read
already how many pips a day you can make using some trading
system. In short, currency pairs prices will go out to 4
significant digits. For example; if one currency pair is trading
for 1.3451 then an increase to 1.3452 would be a "one-pip"
increase in the price of this particular currency. This is an
increase of one hundredth of a percent of the value of the
currency pair you are trading. And depending the type of account
you have, regular or mini, each pip will have a value of $10 or
$1. So if you make 10 pips a day with a regular account you
would have made $100 and with a mini-account $10.



Now we can talk about the Volume; trading Volume is a quantity
that tells traders how much money is being traded at one
particular moment. And the forex market is known by its high
volume of trading during most of the time markets are open. Some
times there can be spikes in the volume during some type of news
breaks and during the time New York stock exchange is open. The
volume of transactions in Forex, even in a slow day, will always
be much higher than the volume traded in other large exchanges
at their full capacity.



Now maybe the most obvious of the concepts. Buying refers to the
acquisition of a particular currency pair to open a trade.
Selling short refers to the selling of a particular currency to
open a trade. When you Buy, you are expecting the price of the
currency pair to increase with time, i.e., you buy cheap to sell
high. In the case of Selling short, it looks a bit more
complicated. Here the way to make money is to initially sell a
currency pair that you think will lose value in a given period
of time and then, once it happened, you will buy it back at the
new price but now you can sell it at the previous greater price
the currency had when you opened the trade, so you earn the
difference in prices. I know it seems kind of tricky, but once
you are in front of your trading station it will look much
simpler.



Understand well these three concepts and you will start with
solid steps you trading career.



About the author:


Adrian Pablo is a freelance writer with articles published in a
number of places. Get a free report on Fibonacci Trading and
learn more about the world of trading , visit:



http://www.1-forex.com

Leave A Comment!

Close Your Name Email Address Add Your URL Your Comments Enter Captcha Code Shown To Left

Show All CommentsHide Most Comments | Post Your CommentsHide Comment Form

Additional Sponsors

Other Currency Exchange Calculator Related Articles

How To Get Started In Forex Trading
Day Trading Forex Or Currencies Back Testing A Way To Improve Your Trading Score
Forex Charting Lesson Chapter 1 Introduction
An Informative Forex Broker Review
A Look At Forex Market Makers

Do you want to contribute to our site: Submit your articles - HERE

Currency Exchange Calculator News

FX Solutions Introduces GTS Pro Forex Trading Platform for Faster Trading.

SADDLE RIVER, N.J. -- FX Solutions (www.fxsol.com), an IT-driven online foreign exchange broker auto-executing almost 99 percent of customer trades1, today introduced GTS Pro (www.fxsol.com/gtspro), a next-generation forex trading platform designed to meet the needs of today's currency traders. GTS

Publication: Business Wire

FX Solutions Introduces GTS Mobile Forex Trading Platform for Fast, Easy Trading Access.

SADDLE RIVER, N.J. -- FX Solutions (www.fxsolutions.com), a technology-driven online foreign exchange broker, today introduced GTS Mobile (www.fxsolutions.com/trading/gts-mobile.asp) to give forex traders anytime, anywhere access1 to their Global Trading System (GTS) accounts. As with all other GTS

Publication: Business Wire

FX Solutions Introduces Web-based GTS Forex Trading Platform.

SADDLE RIVER, N.J. -- FX Solutions (www.fxsolutions.com), a technology-driven online foreign exchange broker, today introduced GTS Web a web-based forex trading platform that gives customers anytime access to their Global Trading System account from a web-enabled computer. Unlike many

Publication: Business Wire

FXDD Launches iTrader and droidTrader Mobile Forex Trading Apps for iPhone and Android.

NEW YORK, Feb. 16, 2011 /PRNewswire/ -- FXDD, a leader in online Forex trading, has launched FXDD iTrader and FXDD droidTrader, free mobile foreign exchange trading apps for the iPhone and the Android market. Now, current and new FXDD customers can access their FXDD trading account on the go from

Publication: PR Newswire

AUSTRALIAN FOREX DEALERS QUERY IRESS US$ TRADING FIGURES.

SYDNEY, Feb 29 Asia Pulse - Foreign exchange dealers today questioned Australian dollar trading figures supplied by domestic information provider Iress Market Technology showing the local unit reached $US95.02 early this morning local time. Data provided by Iress, which is used by many market

Publication: AsiaPulse News