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Chapter 2

BASIC CONCEPTS OF FOREX TRADING

4

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6.5 MINUTES

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English

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Overview

In this chapter, we will cover essential forex trading concepts that every trader must grasp. We will begin by discussing currency pairs and exchange rates, as well as the role that these concepts play in forex trading. The knowledge of these forex concepts will help you become a better trader.

We will also tackle important concepts such as pips and lots, bid-ask spread, market liquidity, margin trading, and leverage. This forex concepts overview is essential for understanding how trades are executed in the forex market, and how risk is managed.

By the end of this chapter, you will have a solid understanding of the essential forex trading concepts that you need to know before executing trades in the market. This knowledge will serve as a foundation for more advanced trading concepts that we will cover in later chapters.

So, let’s dive in and get started with our exploration of essential forex trading concepts.

THE KNOWLEDGE OF THESE FOREX CONCEPTS WILL HELP YOU:

Who is the course for?

Essential Forex Trading Concepts - chapter - baxia markets

Learning Path

Here we will cover: 

• Definition of currency pairs
• Base and quote currencies
• Understanding exchange rates and their fluctuations

1.5+ Minutes read to complete

Here we will cover: 

• Introduction to pips and their significance
• Calculating pip values
• Lot sizes and their role in forex trading

1.5+ Minutes read to complete

Here we will cover: 

• The concept of bid-ask spread
• Factors affecting the spread
• Market liquidity and its impact on forex trading

1.5+ Minutes read to complete

Here we will cover: 

• Understanding margin trading and its benefits
• The concept of leverage and its role in forex trading
• Risks and proper management of margin and leverage

1.5+ Minutes read to complete

Are You Ready To Start? →