Menu
Menu
Its a decentralized global market where all the world’s currencies are traded. The forex market is the most liquid & the largest market in the world with an average daily trading volume around $5 trillion. All the world’s combined stock markets doesn’t even come close to this.
Its a decentralized global market where all the world’s currencies are traded. The forex market is the most liquid & the largest market in the world with an average daily trading volume around $5 trillion. All the world’s combined stock markets doesn’t even come close to this.
Whenever a country wants to buy something from another country e.g. UK wants to buy something from USA, they need to pay them in US dollars so they need to exchange their currency GBP in to US dollars which is done by the banks.
In 90’s it was done among banks & financial institutions only, this is called Interbank market. This financial system is still a top-level of foreign exchange market.
The capital requirement to trade in interbank market was so higher in amount that it wasn’t possible for a retail investor or trader to work in it.
Whenever a country wants to buy something from another country e.g. UK wants to buy something from USA, they need to pay them in US dollars so they need to exchange their currency GBP in to US dollars which is done by the banks.
In 90’s it was done among banks & financial institutions only, this is called Interbank market. This financial system is still a top-level of foreign exchange market.
The capital requirement to trade in interbank market was so higher in amount that it wasn’t possible for a retail investor or trader to work in it.
After Commodity Futures Modernization Act was passed on 15th December 2000 by congress in USA, the doors for online forex brokers were opened.
Low cost computer systems, availability to internet & online trading platforms software given birth to retail FOREX trading we have in these days.
When a retail trader (having limited capital) opens an account with online forex broker which acts as third party between a trader & interbank market, the broker provides the leverage to that retail trader so that he/she can trade in interbank market with limited capital.
In provision of this facility, forex broker charges spread/commission to retail trader.
It acts in similar way as the physical currency exchange which we use to exchange the currencies when you want to travel abroad.
After Commodity Futures Modernization Act was passed on 15th December 2000 by congress in USA, the doors for online forex brokers were opened.
Low cost computer systems, availability to internet & online trading platforms software given birth to retail FOREX trading we have in these days.
When a retail trader (having limited capital) opens an account with online forex broker which acts as third party between a trader & interbank market, the broker provides the leverage to that retail trader so that he/she can trade in interbank market with limited capital.
In provision of this facility, forex broker charges spread/commission to retail trader.
It acts in similar way as the physical currency exchange which we use to exchange the currencies when you want to travel abroad.
| Currency | Nick Name | Issuer/Central Banks |
|---|---|---|
| USD (United States Dollar) | Buck / Greenback | FED (Federal Reserve Bank of America) |
| EUR (Euro) | Fiber | ECB (European Central Bank) |
| GBP (Great Britain Pound) | Sterling / Cable | BOE (Bank of England) |
| JPY (Japanese Yen) | Yen | BOJ (Bank of Japan) |
| CHF (Swiss Franc) | Swissy | SNB (Swiss National Bank) |
| AUD (Australian Dollar) | Aussie | RBA (Reserve Bank of Australia) |
| NZD (New Zealand Dollar) | Kiwi | RBNZ (Reserve Bank of New Zealand) |
| CAD (Canadian Dollar) | Loonie | BOC (Bank of Canada) |
| Currency | Nick Name | Issuer/Central Banks |
|---|---|---|
| USD (United States Dollar) | Buck / Greenback | FED (Federal Reserve Bank of America) |
| EUR (Euro) | Fiber | ECB (European Central Bank) |
| GBP (Great Britain Pound) | Sterling / Cable | BOE (Bank of England) |
| JPY (Japanese Yen) | Yen | BOJ (Bank of Japan) |
| CHF (Swiss Franc) | Swissy | SNB (Swiss National Bank) |
| AUD (Australian Dollar) | Aussie | RBA (Reserve Bank of Australia) |
| NZD (New Zealand Dollar) | Kiwi | RBNZ (Reserve Bank of New Zealand) |
| CAD (Canadian Dollar) | Loonie | BOC (Bank of Canada) |
Every thing is traded in pairs. In old times (in Barter system) some quantity of one commodity/goods was exchange/sold to get some quantity of other commodity/goods.
Even in recent times when we buy something e.g. Car, buy paying it cost in Pak Rupees, it can be considered that we bought CAR/PKR pair. Vice versa if we are selling back our car, we can say we are going to sell CAR/PKR pair.
EUR / USD GBP / USD USD / JPY USD / CHF AUD / USD NZD / USD USD / CAD
In real life, to sell something you need to have it but in Forex, you don’t need to have something to sell it (called Short Selling) … Strange …. Isn’t it??? …. Let me explain you in detail.
Every thing is traded in pairs. In old times (in Barter system) some quantity of one commodity/goods was exchange/sold to get some quantity of other commodity/goods.
Even in recent times when we buy something e.g. Car, buy paying it cost in Pak Rupees, it can be considered that we bought CAR/PKR pair. Vice versa if we are selling back our car, we can say we are going to sell CAR/PKR pair.
EUR / USD GBP / USD USD / JPY USD / CHF AUD / USD NZD / USD USD / CAD
In real life, to sell something you need to have it but in Forex, you don’t need to have something to sell it (called Short Selling) … Strange …. Isn’t it??? …. Let me explain you in detail.
In most currency pairs fourth decimal point of exchange rate is called PIP (in Yen pairs its second decimal point).
Leverage is a facility provided by broker so that the trader can participate in forex trading with relatively smaller account size. Usual leverages provided by brokers are 100:1 , 200:1, 400:1 while XM provides 888:1.
It’s an amount (equity) required as a percentage for the worth of currency being bought in forex market. Higher leverage reduces margin requirements e.g. an account with 50:1 leverage requires the 2% margin (means trader need $2,000 equity to buy $100,000 worth of currency), while 100:1 reduces the margin requirements to 1% only.
In most currency pairs fourth decimal point of exchange rate is called PIP (in Yen pairs its second decimal point).
Leverage is a facility provided by broker so that the trader can participate in forex trading with relatively smaller account size. Usual leverages provided by brokers are 100:1 , 200:1, 400:1 while XM provides 888:1.
It’s an amount (equity) required as a percentage for the worth of currency being bought in forex market. Higher leverage reduces margin requirements e.g. an account with 50:1 leverage requires the 2% margin (means trader need $2,000 equity to buy $100,000 worth of currency), while 100:1 reduces the margin requirements to 1% only.
Click on OPEN A DEMO ACCOUNT
Fill the form in Demo Account Registration & click on green button of OPEN A DEMO ACCOUNT
You will receive an e-mail from XM, open that e-mail & click on red button of CONFIRM E-MAIL ADDRESS
You will receive a welcome e-mail from XM with demo account details, now click on the link Download an XM trading Platform
After downloading, install the file & start it.
Click on OPEN A DEMO ACCOUNT
Fill the form in Demo Account Registration & click on green button of OPEN A DEMO ACCOUNT
You will receive an e-mail from XM, open that e-mail & click on red button of CONFIRM E-MAIL ADDRESS
You will receive a welcome e-mail from XM with demo account details, now click on the link Download an XM trading Platform
After downloading, install the file & start it.
EUR / USD GBP /USD USD / JPY USD /CHF AUD / USD NZD / USD USD / CAD
Pairs (Financial Instruments)
EUR/GBP
EUR/JPY GBP/JPY EUR/CHF GBP/CHF EUR/AUD GBP/AUD EUR/NZD GBP/NZD EUR/CAD GBP/CAD
CHF/JPY
AUD/JPY AUD/CHF NZD/JPY NZD/CHF CAD/JPY CAD/CHF
AUD/NZD
AUD/CAD NZD/CAD
XAU / USD (GOLD)
XAG / USD (SILVER)
WTI or XTI / USD or Oil (CRUDE OIL)
1 Troy Ounce 1 Troy Ounce 1 Barrel
(31.1035 grams) (31.1035 grams) (158.987 Liters)
EUR / USD GBP /USD USD / JPY USD /CHF AUD / USD NZD / USD USD / CAD
Pairs (Financial Instruments)
EUR/GBP
EUR/JPY GBP/JPY EUR/CHF GBP/CHF EUR/AUD GBP/AUD EUR/NZD GBP/NZD EUR/CAD GBP/CAD
CHF/JPY
AUD/JPY AUD/CHF NZD/JPY NZD/CHF CAD/JPY CAD/CHF
AUD/NZD
AUD/CAD NZD/CAD
XAU / USD (GOLD)
XAG / USD (SILVER)
WTI or XTI / USD or Oil (CRUDE OIL)
1 Troy Ounce 1 Troy Ounce 1 Barrel
(31.1035 grams) (31.1035 grams) (158.987 Liters)
| Amount | Name | Lot | Units of Currency |
|---|---|---|---|
| $10 | 1 Standard Lot | 1 | 100,000 |
| $1 | 1 Mini Lot | 0.1 | 10,000 |
| 10 Cents | 1 Micro Lot | 0.01 | 1,000 |
Decimal Point / Current Exchange Rate * 100,000 = Standard Lot Size
| Amount | Name | Lot | Units of Currency |
|---|---|---|---|
| $10 | 1 Standard Lot | 1 | 100,000 |
| $1 | 1 Mini Lot | 0.1 | 10,000 |
| 10 Cents | 1 Micro Lot | 0.01 | 1,000 |
Decimal Point / Current Exchange Rate * 100,000 = Standard Lot Size
Stop Loss Order
It’s a pending order to broker at specific price to close the trade in loss. It’s works as pending sell order in buy trade & gets triggered with bid price and vice versa.
Take Profit Order
It’s a pending order to broker at specific price to close the trade in profit. Its works as pending sell order in buy trade & gets triggered with bid price and vice versa.
It’s a pending order to broker at specific price to close the trade in loss. It’s works as pending sell order in buy trade & gets triggered with bid price and vice versa.
It’s a pending order to broker at specific price to close the trade in profit. Its works as pending sell order in buy trade & gets triggered with bid price and vice versa.
