What Forex is, pips, lots, leverage, spread, order types and trading sessions: the ideas to grasp before your first trade.
52 guides
Margin is the money the broker holds so you can open and keep a trade open. This guide explains how to calculate margin, equity, free margin, margin level, margin call and stop out, and why the position size decides how many pips your account can take.
The R:R ratio compares the loss if price hits your stop loss with the gain if price hits your take profit. This guide shows how to calculate R:R, the win rate you need to break even, what trading costs do to it, and how to use R:R together with position size.
What to check when you choose a forex broker: the license and the entity that signs your contract, the execution model, spread and commission, deposits and withdrawals, and the signs worth avoiding.
In forex, currencies are always traded in pairs, yet there is one index that does not come in a pair and is still extremely important: a measure of value against 6…
The exchange rate is one of the decisive factors affecting the health of an economy. Alongside factors such as interest rates and inflation, the exchange rate is one of the economic indicators that people watch and analyze.
The term sideways is probably one of the familiar terms you often hear or read when you take part in forex trading. And because it is so familiar…
Dollar-cost averaging (DCA) is an investment strategy in which an investor splits a total amount of money across purchases made at regular intervals or according to…
Your trading style comes from your character and the time you have; a trading strategy is the plan that follows from it. This guide separates the two, goes through the 4 common styles, the 5 elements of a strategy, the two schools of analysis, and the signs that a strategy is worth changing.
Before you put money into any market, the first thing to look at is the state that market is in. This overview of the Forex market in Vietnam covers the legal position, how many traders and brokers there are, which products get traded most, and the IB networks and Forex websites around it.
If you follow technical analysis you already know RSI, the indicator that measures the momentum of price. The Money Flow Index does the same job but adds volume to the calculation…
Leverage is a very familiar idea in corporate finance, where it is about using borrowed money in the running of a business to get the most profit out of it. In financial investing leverage matters just as…
In an earlier guide we went through the term pip; this time we carry on with another basic term in Forex that matters just as much, and that is…
The CFD is probably the most familiar arrangement to anyone who trades forex, and yet not everyone understands clearly what it is…
We all know that to take part in the forex market the first thing to do is open a trading account at some forex broker. Few people, though,…
In this article we introduce you to a piece of financial market knowledge that is both familiar and unfamiliar: the bond. Almost everyone has heard of bonds…
Many people who take up forex trading think the only way to make money from this market is buying and selling currency pairs. That is not how it is…
The Fed is probably the most powerful financial institution in the world. It is the body that issues the US dollar, and the monetary policy it sets affects not only the United States…
In forex trading, being at home with every order type matters, and it is basic knowledge you ought to have. Besides the two very common order types that…
The forex market runs around the clock, but it is not always a good moment to enter a trade. A professional trader, instead of trading all day, picks only…
A lot is the unit that measures position size in forex trading. In everyday life we have units such as the meter, the kilogram and the liter; each kind of product has a unit of its own…
Scalping is a trading method a great many traders like, especially the ones who prefer a “strike fast, finish clean” style; the time from…
How much is 1 lot worth in USD? How to convert the value of 1 lot into USD, the margin you need at each leverage, how to work out pip value for every type of currency pair, and an example of choosing a position size for a 500 USD account…
Most of us met 2 ways of analyzing the market when we started trading forex: fundamental analysis and technical analysis. Each of them comes with a great many tools…
If you set out to find the origin of technical analysis in forex trading, the answer you end up with is Dow theory. More than 100 years old, it is no accident…
Fundamental analysis is one of the 2 major schools of analysis in investing and financial trading. Next to technical analysis it is the less popular of the two…
Every financial market has an instrument of its own. Mention the stock market, for instance, and shares come to mind straight away; mention the foreign exchange market and…
A bull market and a bear market are two concepts every investor and trader on the financial markets knows well, and both name a kind of market trend…
Bullish Harami is one of the common bullish reversal patterns in financial markets such as stocks, foreign exchange and cryptocurrency; whatever the market, as long as it is driven by…
When hedging comes up in forex trading, many people think straight away of opening a position in the opposite direction to the one they already hold on…
A timeframe is the time span of each candle on the chart. This article explains the timeframes from M1 to MN, how to choose one to suit your trading style, and how to read several timeframes together.
TradingView is a charting platform and a social network for traders. This article walks you through the account plans, the interface, the drawing tools, the indicators, price alerts, Paper Trading and a handful of tips for using TradingView.
Once you are a trader the list of things you fear is probably a long one, and slippage is on it. Slippage, being filled at a different price than you asked for, is a nagging problem…
A stop loss, like spread, pip, lot or commission, is one of those basic but very important terms in forex trading. A stop loss is treated as one of the risk management tools you cannot do without, and yet…
Bullish and bearish are two very basic but very important concepts on financial markets such as stocks, foreign exchange and cryptocurrencies. Both…
A pip is short for percentage in point, the unit that measures the price movement of a financial instrument such as a currency pair, a metal, an index or a share…
Trading cost is one of the things a trader has to weigh carefully when choosing a broker and a trading account. On every trade that is opened and closed…
Elliott wave theory grew out of the view that “the way crowd psychology moves is what forms the patterns and the trends of prices in the market”…
Next to reading market psychology through candlestick patterns, getting to the bottom of what a technical indicator is and how it works looks a great deal harder…
A stop loss and a take profit are 2 basic ideas that every trader who trades forex has to know. They are the 2 order types used to fix the profit or the loss of a…
A position, and Long and Short, are basic terms an investor or a trader needs a firm grip on when taking part in any financial market. Although…
Thick advertising that treats Forex trading as a money-printing machine, or as making money with a single click of the mouse, has drawn a great many people to forex and left it badly misunderstood…
When trading forex, traders usually pay attention mostly to the major currency pairs, shares, metals (gold or silver), energy and cryptocurrencies, and take little notice of another product…
Foreign exchange is a familiar enough term for anyone who works in economics or finance, but a new investor can find the idea vague. Here is the most basic picture of it…
Trader is a term for the people who buy and sell on the financial markets and take a profit from those trades. Are you trading on the foreign exchange market? Then…
A Marubozu is a long-bodied candle with almost no wick, which shows one side in control during the session. This article covers what it looks like, the variants of it and how to trade a Marubozu, with notes on where the stop loss goes.
Is trading Forex through a broker abroad legal in Vietnam? The legal documents involved, the risk of being fined, and why an investor is not protected in a dispute with the broker.
A gap is an empty space in price that shows up on financial charts. If you trade stocks you will see plenty of gaps; in forex this usually happens only when the market opens at the start of the week, or in a few special cases.
When you speak of the great contributions to technical analysis in the forex market in particular, and in financial markets in general, you cannot leave out…
Breakout is a familiar and fairly important idea for traders in financial markets such as stocks, foreign exchange and cryptocurrency. A breakout is…
ForexFactory is a site every forex trader knows, and it is best known for its economic calendar. This article shows you how to set the time zone, filter for the news that matters, read the Actual, Forecast and Previous figures and use the forum.
A guide to using MT4 on an Android phone and on an iPhone: install the app, log in to the right server, add pairs, read the chart, place an order with a stop loss and a take profit, and close it.
MT4 (MetaTrader 4) is the trading platform most retail forex brokers run. This article explains what MT4 is, how to download it, how to place an order, set a stop loss and a take profit, and the keyboard shortcuts worth knowing.
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