The extension of forex is foreign exchange or sometimes abbreviated to FX, where forex or foreign exchange is the exchange of foreign currency, which at the beginning had a goal to be a means of payment between countries but in its development is now forex became one of the investment instruments that developed rapidly in this modern period . What affects it is supply and demand which then makes the value of the currency to fluctuate. From here traders then earn profits by exploiting fluctuations in currency values.
There are several terms in the world of forex trading is quite confusing for beginners, because the term is different from the English term in general. There are very many terms in the world of forex in the world of forex trading, but of the many terms that exist in the world of trading there are 13 terms that are very important and must be known by traders everywhere so as not to confuse when trading.
Term terms such as spreads, Pips, Trading, Indicators, Time frames, Op, SL, TP, long term, short term, broker, trader, mt4 are terms that all traders must know because this term will often be found when trading.
SPREAD
This spread is the difference between the purchase price and the bid or ask price, which is stated in pips. The smaller the spread will be more profitable for investors to reach the BEP, but if the spread is getting bigger then trader will be difficult also reach the BEP. This then makes the spread very influential in trading.
PIPS
Above we have heard Pips, where pips or pip or this point is the smallest unit of number of a currency. In modern forex trading most have adapted five digits although there are still some who still use four digits. Where the leading digit is the principal number and the rest is the fractional number. For example, in the pair GBPUSD is in the number 1.2000 mka one pips is at the smallest number 0.0001 or 1/100 cents. However, in USD / JPY pair there are few exceptions where 1 pips has a value of $ 0.01
TRADING
If the trader is the culprit, then trading is a thing done by a trader, where trading is a buying and selling activities that take advantage of price fluctuations to achieve profit.
INDICATOR
Is an analytical tool commonly used when performing technical analysis is very useful to provide real information about the current market conditions so that traders can perform analysis to open position at the right time and time.
TIME FRAME
This term is in Meta Trader, which aims to see price movement or chart in one time unit. Usually used from the smallest unit M1 to the largest is daily, weekly and yearly.
OPEN POSITION / OPEN POSITION / OP
After a trader performs proper technical and fundamental analysis, then the next thing to do by a trader is to buy or sell. This is called OP or Open Position or Open Position.
STOP LOSS / SL
Stop loss is a part of money management where Stop Loss must be installed so that traders can limit losses. How many numbers of losses that can be tolerated depends on each trader by looking at the capital owned and trading psychology of each trader. Stop Loss will be very useful when prices move in opposite direction from your current position.
TAKE PROFIT / TP
If Stop Loss is useful to limit losses, then Take Profit is useful for automatic liquidation when the price is in the desired position automatically. Stop Loss and Take Profit is usually a pair.
LONG TERM & SHORT TERM
Although the name is different, but both have the same meaning just different time span. Where Long Term is a condition where you think long term and Short Term is a condition where a trader thinks short term.
BROKER
Broker is a brokerage company that bridges between a trader and the exchange so that the transaction can run well. But be careful because there are many broker scam that harms the trader.
TRADER
If Broker is a brokerage company, and trading is an activity then a trader is a trader who has a number of investment funds in a futures exchange transacted through a broker.
MT4
Meta Trader 4 or commonly called MT4 is a trading platform commonly used by traders to do trading.
There are several terms in the world of forex trading is quite confusing for beginners, because the term is different from the English term in general. There are very many terms in the world of forex in the world of forex trading, but of the many terms that exist in the world of trading there are 13 terms that are very important and must be known by traders everywhere so as not to confuse when trading.
Term terms such as spreads, Pips, Trading, Indicators, Time frames, Op, SL, TP, long term, short term, broker, trader, mt4 are terms that all traders must know because this term will often be found when trading.
SPREAD
This spread is the difference between the purchase price and the bid or ask price, which is stated in pips. The smaller the spread will be more profitable for investors to reach the BEP, but if the spread is getting bigger then trader will be difficult also reach the BEP. This then makes the spread very influential in trading.
PIPS
Above we have heard Pips, where pips or pip or this point is the smallest unit of number of a currency. In modern forex trading most have adapted five digits although there are still some who still use four digits. Where the leading digit is the principal number and the rest is the fractional number. For example, in the pair GBPUSD is in the number 1.2000 mka one pips is at the smallest number 0.0001 or 1/100 cents. However, in USD / JPY pair there are few exceptions where 1 pips has a value of $ 0.01
TRADING
If the trader is the culprit, then trading is a thing done by a trader, where trading is a buying and selling activities that take advantage of price fluctuations to achieve profit.
INDICATOR
Is an analytical tool commonly used when performing technical analysis is very useful to provide real information about the current market conditions so that traders can perform analysis to open position at the right time and time.
TIME FRAME
This term is in Meta Trader, which aims to see price movement or chart in one time unit. Usually used from the smallest unit M1 to the largest is daily, weekly and yearly.
OPEN POSITION / OPEN POSITION / OP
After a trader performs proper technical and fundamental analysis, then the next thing to do by a trader is to buy or sell. This is called OP or Open Position or Open Position.
STOP LOSS / SL
Stop loss is a part of money management where Stop Loss must be installed so that traders can limit losses. How many numbers of losses that can be tolerated depends on each trader by looking at the capital owned and trading psychology of each trader. Stop Loss will be very useful when prices move in opposite direction from your current position.
TAKE PROFIT / TP
If Stop Loss is useful to limit losses, then Take Profit is useful for automatic liquidation when the price is in the desired position automatically. Stop Loss and Take Profit is usually a pair.
LONG TERM & SHORT TERM
Although the name is different, but both have the same meaning just different time span. Where Long Term is a condition where you think long term and Short Term is a condition where a trader thinks short term.
BROKER
Broker is a brokerage company that bridges between a trader and the exchange so that the transaction can run well. But be careful because there are many broker scam that harms the trader.
TRADER
If Broker is a brokerage company, and trading is an activity then a trader is a trader who has a number of investment funds in a futures exchange transacted through a broker.
MT4
Meta Trader 4 or commonly called MT4 is a trading platform commonly used by traders to do trading.
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