FOREX CENTER FOR BEGINNERS (STEP 1)

Only a dedicated blog for forex beginners to learn freely but contain useful information

Nowadays, forex market have been known as the most popular markets for trading. Many people, whether the experienced traders or newbie, look round to this market to maximize their return of investment. No wonder how they try to enter this market because they see Forex as an alternative way (even the most profitable element) to diversify their portfolio.

So many advantages of Forex offered when compared to other markets and now have been the largest financial market in the world, at least up to this article published. About $2 trillion being traded daily!

Wonderful forex's potential in leverage is one phenomenon in financial market. You have access to leverage of 100 : 1 and even 500 : 1 ( mini contract /nano account).

But this amazing market trigger many big tragedies other than the great profitability. Many people who don't know or newly learn about forex have been manipulated by irresponsible persons who use the less-knowledge and psychological weakness of their victims.

THIS IS MY FOCUS !!!

Here I'm not try to give you detailed definition or something like that, because many other places can give you more detailed and clear information about forex world. But it's not mean that my content is very unique, no..no.

I only try to share my personal experience on how to learn quickly and trade successfully with EASIEST WAY, of course, this is only based on my experience and you may do it better. But for newbie, I'm sure what I will shared is useful information. I have three steps to do to begin enter forex market : Find Core Keywords; Find Reliable Support and Find Trusted Company. I will post it one by one :

STEP 1 : FIND CORE KEYWORDS
After more than 2 years learn and practice in forex world, I assume that I can suggest you with some core keywords to help you to find the best understanding in forex. Here ten keywords that will help you to begin your career as a forex trader :

• ASK : BUY, although many definitions but the core is : if you press ASK button,/ASK price it's mean you want to do a BUYING ACTION (when you predict the price will up / bullish).
  
• BID : SELL, the opposite of ASK, if you press BID button/BID price, it's mean you want to do a SELLING ACTION (when you predict the price will be down / bearish).
  
• SPREADS : Difference between BID and ASK price of a currency pair, counted in points or pip. For example, if the BID is 1.2540 and ASK price is 1.2543, so the Spread - the difference between the two - is 3 pips. Often referred to at the Bid Offer Spread, this is the amount the buy price (ask or offer price) exceeds the sell price (bid).
  
• Pip : Pip or "percentage in point," refers to the very last digit of a currency price; that is the smallest increment of change in a foreign currency price, either up or down. For example if the price move from 1.2540 to 1.2541 the pip is 0.0001 (called 1 point/pip). As an illustrative example, take EUR/USD at 1.2635. If the sell price were to increase to 1.2636 we have a one pip increase. Should the EUR/USD sell price move from 1.2635 up to 1.2735, we say EUR/USD increased 100 pips.
• COMMISSION/FEE : The fee that a broker may charge clients for dealing on their behalf. In the case of securities trading, brokers can be split into two broad categories depending on the commissions they charge. Discount brokers charge relatively low commissions, but provide no services beyond executing trades. Full service brokers charge higher commissions, but provide research and investment advisory services.
• LEVERAGE : Ratio of the amount used in a transaction to the required security deposit. We can compare leverage with buying power of credit. In terms of credit buying power I can simply explain to you : You have the right to use an apartment although you newly deposit 5% to 10% of the real price. If suddenly the price of apartment is rise up to 200% after you live in for 6 months, so you can sell the apartment (budge your credit) to other person who interesting with the apartment with high price and you can enjoy a benefit from the change of price. That's simple description for leverage, of course, in forex market you do not need to wait until 5 or 6 months, but it's may be happen only for minutes.
  
• Value Per Point (Per Lot/price unit) : Dollar amount counted for every one pip moving price. Usually the dollar amount depend on number of lots. If you execute an order for one lot, then each time the price move (for example : from 1.2000 to 1.2001) usually for each 1 pip movement is valued $1. If you execute an order for 0.1 lot (for mini/nano account), then each time the price move valued $0.1 whether plus or minus.
  
• Lot : A unit to measure the amount of the deal. The value of the deal always corresponds to an integer number of lots. In forex market, you allowed to trade with minimum quantity 1 lot (for standard contract size) or 0.1/0.01 lot (for mini contract size). The amount of lots determine how many funds you have to provide in order to be allowed to enter the market. A lot represents the standardized minimum quantity of a financial instrument may be traded as set out by an exchange or similar regulatory body. With such standardization, investors always know exactly how many units they are buying with each contract and can easily assess what price per unit they are paying.
  
• Price Transparency : The ability of all market participants to "see" or deal at the same price.
• FOREX BROKER : Brokers is agents who working on commission (and/or spread) and not principals, in other word they act on their own account. They executes orders to buy and sell currencies and related instruments. In the foreign exchange market they tend to act as intermediaries between banks bringing buyers and sellers together for a commission paid by the initiator or by both parties.

If you have understood the terms above, so you can continue to my 2nd Step that I will post it as soon as possible. Good Luck!