Want to become a Forex investor? Let’s start with this article to start learning all about it!
When you invest online you have to be aware of all your options and be ready to act fast to changes that occur.
You have to use the market to your advantage and learn how to think ahead in order to achieve your goals.
It’s a fast-paced, exciting environment, and you need to face it with a broker you can trust.
With 20 years of experience in the financial services industry, the iFOREX group understands the needs of modern traders and will help you discover market opportunities with valuable information and the most advanced trading tools.
Start becoming a trader with iForex!
The first and most important step in becoming a trader is learning the basics.
Here are a few important financial terms that you should know before you step onto the financial field and start opening deals.
Any of the financial products available to invest in (e.g.: shares, currencies, commodities, indices).
Contract for Difference (CFD)
A contract that allows investors to speculate on the changing values of underlying assets without having to take ownership of them.
The contract exists between “buyer” and “seller”, stipulating that the seller will pay to or gain from the buyer the difference between the value of the asset at the time the contract is agreed and the value at the time it expires.
Leverage allows you to open large deals with a relatively small investment.
This is one of the main advantages of investing in CFDs as opposed to taking ownership of actual instruments.
The price at which an investor or institution is willing to sell the CFD.
The price at which an investor or institution is willing to buy the CFD.
The difference between the Bid price and the Ask price. It will vary depending on the instrument you invest in.
An arrangement of letters abbreviating a particular currency, which is globally recognized. The symbol is usually three letters, for example: EUR / USD (Euro / United States Dollar)
Pip stands for Percentage In Point.
For most currency pairs, it corresponds to the movement of one unit of the fourth decimal digit in a rate, but there are exceptions like the Japanese Yen pairs and even shares and other instruments, where it corresponds to the movement of one unit of the second decimal digit in a rate.
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