How to Forex Trade works?
Posted On May 28, 2008 at at 2:25 AM by kulluTo begin Trading in the FX market, you must familiarize yourself with how currencies are handled and trades. hard and soft currencies are traded in pairs and through ISO codes. There are five different types of transactions and six different ways to execute a trade. additionally, it is very important to understand some common terms surrounding a trade which include: lot sizes and margin, PIP, bid-ask spread, position trading, settlement delivery, volume and open interest.
ISO Codes
Currencies in the FX market are not referred to by their full names; instead , they are identified by standardized codes or ISO codes, developed by the International Organization for Standardization. ISO abbreviations are used widely on charts and trading platforms, but they are rarely used in conversations among traders. Traders or the media may refer to the currencies by their nicknames during everyday conversations. Throughout our trading material, we interchangeable use the full names, ISO codes, and nicknames of currencies to help you get accustomed to the trading language.
ISO Codes
Currencies in the FX market are not referred to by their full names; instead , they are identified by standardized codes or ISO codes, developed by the International Organization for Standardization. ISO abbreviations are used widely on charts and trading platforms, but they are rarely used in conversations among traders. Traders or the media may refer to the currencies by their nicknames during everyday conversations. Throughout our trading material, we interchangeable use the full names, ISO codes, and nicknames of currencies to help you get accustomed to the trading language.
