The trading process

So, how does the actual trading process work? Is it complex? Well, let’s find out.

One thing I should mention involves the terms ‘long’ and ‘short.’ Going long means you are buying the pair, and going short means you are selling the pair. Making a trade involves pips and lot sizes.

Let’s say you buy EUR/USD with a standard lot size. Each pip in your favor will increase your profits by $10. So, if you make 20 pips, your profit is $200 because 20 x $10 = $200. Ok, let’s turn to a micro lot.

If you have a favorable pip movement of 20 pips, then your profit is 20 x $0.10 = $2. You see, size matters in?forex. As we are in the trading process, I’m gonna divert your attention to leverage. Often described as a double-edged sword, leverage is how you take substantial positions in the market.

Leverage is a ratio (e.g., 1:10 or 1:100) that gives you more purchasing power. Your chosen?forex broker?gets to decide how much leverage you’re going to get. For example, you got leverage of 1:100 on a $1,000 account You can open a position for $100,000. You see why this is a double-edged sword; it can magnify your profits?and?losses.

?? Read more at https://tinyurl.com/yjhcbf4a

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