Keep it simple in case of forex trading!

forex trading

Like you already have been able to read in the article “Online Forex Trading is simple”, it’s very important for you to dispose of the right mindset with regard to online forex trading. In the articles to come I’ll therefore go into this more thoroughly. In this article I’m going to discuss the importance of [...]

See to it that the odds are in your favor!

forex-odds

In the article “Probability in case of a forex trading system” you have learned that your goal has to be to have the odds in your favor. In addition to this you have been taught about the effect of different risk/reward ratios are having on the final output. In this article we put the theory [...]

Probability in case of a trading system

forex-risk-reward

Probability is of great importance to forex trading, but the influence of probability is often underestimated in actual practice. A consequence of this is that people cause unnecessary problems for themselves or they are going to start building on a wrong foundation. In this article I’m going to show the influence of probability when it’s [...]

Online Forex Trading is simple!

online-forex-trading

If you drop this pronouncement on any forex forum, you’ll run a big chance that you’ll get lectured at, as many forex traders are still going through a daily struggle. Some of them still haven’t got a profitable forex trading system, while others keep struggling with matters like psychology and risk management. Hence a bit [...]

What is Rollover?

forex rollover

When you have a position standing open for the duration of more than one day, you’ll either receive interest or you’ll have to pay interest. This is also occasionally being called rollover. In this article I’ll explain to you what rollover actually means en how rollovers are functioning. In case of a forex transaction it’s [...]

What is the meaning of Leverage and of a Margin Call?

forex-leverage

We already mentioned a lot size of 100,000 units, but there are only a few forex traders who have enough money in their forex account to be able to trade with standard lots. Fortunately you can use the so called leverage while practicing forex trading, as a result of which only a limited percentage of [...]

What is Spread?

forex-spread

You’re now informed about the significant function a pip has on behalf of forex trading and how you can calculate the value of a pip. Finally there still remains the spread which should definitely be taken into account. The spread is the difference between the bid and the ask price. It’s evident that the forex [...]

The value of a pip

forex value pip

Now that you are informed about the meaning of a pip, the next step will be to calculate the value of a pip. The value of a pip depends on the currency pair you want to go trading with. As soon as you are aware of the value of a pip per unit, you can [...]

What is a Pip?

forex pip

In case of forex trading eventually it’s the pips that count. A pip stands for the smallest possible price difference in an exchange rate. The value of a pip is important for the determination of among other things the risk/ratio yield of a trade, but of course also for the calculation of profits and losses. [...]