A trading platform refers to the software in which the online forex trade is taking place. Foreign exchange trading has shifted online in the software coded by programmers where real time investors tend to participate in the trading process.
The forex trading software brings in several sellers and buyers from different part of the world in an iconic representation in the software. The buying and selling takes place via an online account.
When you are trading in forex it is important that you get used to the meanings of the terms pips and lots. You will come across this terminology very often while you are in to the forex trading process.
It is important that you get to be comfortable with pips values before you start up with any kind of currency trading process.
What is pip? Ideally, this is the difference in the quotation of the currency pair. Ideally this is the differences between the last decimal place in the quotation. This is the method that is important to help you asses your profit and loss in forex trading.
Every currency that you are going to trade with is going to have its own value. So, there has got to be a reference standard for the currency you are trading with in the forex trading platforms. So, without pip you might not be able to trade the different currencies.
Apart from having a proper understanding of the PIP it is important that you get used to the lot size in forex trading. Currencies will be usually traded in lots and based on the platform you are trading in you need to know what 1 lot means.
No comments:
Post a Comment