Basic ≠ unimportant
Basic > Important

Learn properly the basic in Forex is much important. It can help to guide you quickly get started in the field of foreign exchange.

Most Common Question for beginner.

1. Understand the basic terminology in Forex

  • you spend money, or sell, is base currency. currency you bought is called denominated currency. in forex trading, you sell one currency to buy another.
  • exchange tells you that you have to set fire to the quote currency to buy the base currency. For example, if you want to use sterling to buy some dollars, you might see something like this exchange: GBP / USD = 1.589. This exchange shows that you have to spend $ 1.589 to buy £ 1.
  • long show that you want to buy the base currency and sell the quote currency. In the above example, you want to sell dollars and buy pounds.
  • Short show that you want to buy and sell currency denominated in the base currency. In other words, you will sell pounds and buy dollars.
  • bid price is your broker is willing to buy with prices denominated in the base currency of the currency. Purchase price in the market you are willing to sell best price denominated in the currency.
  • selling price , or asking price, your broker is willing to sell the base currency to buy currency denominated prices. selling price are you willing to buy from the market’s best prices.
  • spread is the bid and offer price gap between. [1]