Author: Yokoyi

Step 1: Register with a regulated forex broker The first step in trading forex is to register with a regulated forex broker and log on to your personal area on the broker’s website. During registration, your broker will ask you to choose an account currency (base currency) in which your wallet will be opened. Your…

The forex market opens at 5pm on Sunday and closes at 5 pm on Friday. However, even though the market is open it doesn’t mean the majority of the traders are awake. When traders in a location are inactive or sleeping it reduces the market flow & liquidity. There are periods when traders from different…

What Does CFD Stand For? CFD stands for Contract For Difference and it is an Over-The-Counter (OTC) derivative financial instrument. Over-The-Counter means CFDs are not traded on a regulated exchange (such as a stock exchange) making CFDs cheaper & more flexible but more risky than Exchange-Traded-Derivatives (ETDs). Derivative means that CFDs can be derived or…

What is Leverage in Forex? Leverage is when your broker borrows you funds to trade with. This loan enables you to open bigger trades than your account balance would have allowed. Leverage is expressed as a ratio like 1:30, 1:200, 1:1000 etc. If you wanted to open a trade valued at $100,000 & your broker…

Meaning of Spread in Forex Spread is the difference between the price you pay to buy a currency pair & the price you will be paid when you eventually sell the currency pair. Spread is expressed & measured in pips The buy & sell prices are never the same except your broker is offering you…

What is a Pip in Forex? In forex, exchange rates move in increments of 0.0001 or 1 pip so a pip is actually 0.0001, A pip (meaning “percentage in points”) can also be defined as the smallest increment an exchange rate can make. If the EUR/USD exchange rate appreciates from 1.0694 to 1.0695 that is…

A Lot Size is used to express how many currency pairs you want to trade. Different lot sizes exist to make forex trading affordable to those with small account balances. Lot sizes are also useful in risk management, because when volatility/uncertainty is high in the market, you can switch to a lower lot size. Trading…

A currency pair is a tradable product made up of two currencies. Currency pairs are listed on your brokers menu so you can choose which one you want to trade. Every currency pair product has a price tag attached to it & this price is called the exchange rate. So whenever you want to trade,…

The Unregulated Forex Broker Who They Are An unregulated broker is one that is not licensed by any government body. They are the most dangerous forex trading scam out there. How They Operate For this scam to succeed, the unregulated broker hopes you will be too distracted by the promises of bonuses, that you will…

What Does Regulation Mean in Forex? Regulation in forex means the rules that your forex broker is expected to adhere to. Without regulation, there would be lawlessness & brokers will not be held accountable by anyone. Regulation sets the rules for the brokers to follow & lays out the penalty for breaching the rules. Regulation…