Which currency is basic and which is the counter currency in the pair EUR/USD?
The euro is the basic currency (the first in the pair, i.e. the one you buy or sell). USD is a counter currency (second in the pair)
What is a ‘Lot’?
A lot is a transaction unit on the market. One standard lot contains 100,000 units of base currency. For example, one standard lot of EUR/USD equals 100,000 EUR. Please note that on Cent accounts you trade cent lots, where one…
What is a ‘Market maker’?
A Market maker or a liquidity provider is a company or an individual that provides buy and sell prices for a financial instrument or commodity seeking to make a profit on spread or whole trade turn.
What are the major currency pairs on Forex market?
The most traded currency pairs in the world are called the Majors, such as EUR/USD, GBP/USD, USD/JPY, USD/CHF, etc. They involve the following currencies: euro, US dollar, Japanese yen, pound sterling, Australian dollar, Canadian dollar, and the Swiss franc. www.iwinchart.com
What is a quote?
A currency pair quotation is the relative value of a currency unit against the unit of another currency in the foreign exchange market.
What does ‘Forex broker’ mean?
The Forex broker operates as an intermediary between you and the market. In other words, in order to find a buyer or seller for currencies, you can go to a broker and they match you up with either a prospective…
What is trading and what do traders actually do?
Financial trading involves the buying and selling of financial instruments for different periods of time, usually for medium and short term. A trader is a person or entity who buys and sells financial instruments such as currencies, stocks, bonds, commodities,…
Who sets the price on the Forex market?
Prices are set as a result of a variety of operations made between different counterparties: banks, financial and insurance companies, investment funds and private investors.
What are the key advantages of the Forex market?
Superior Liquidity: Liquidity is what really makes the foreign exchange market (or Forex) stand out from other markets. There are over 15 foreign exchange markets, which are by far the most liquid financial markets, dealing about one trillion U.S. dollars…
Market participants
All operations on the financial Forex market are done via the system of financial institutions, such as: central banks, commercial banks, dealers and brokers. Every Forex participant has its own volume of deals on the Forex market. For example, central…