Forex Maldives Blog

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FOREX
An abbreviation that stands for Foreign Exchange. Forex is therefore trading in foreign currencies.

LOT
Trading goes with large volumes. A standard volume has 100,000 units and is called a LOT

Trade order
By placing a trade order you buy or sell a certain currency

Bear / Bearish
A Bear is someone who sells currency because he thinks that the price will fall. A falling course is called Bulllish

Bull / Bullish
A bull is someone who buys currency because he thinks that the price will rise. A rising price is called bullish.

Go short
Going short means ‘buying’. When you expect the price to go up, you place a purchase order and ‘Go your short’.

Go long
Going long means ‘Selling’. If you think the price will fall, you place a sales order and ‘Go your short’.

Stop-Loss
You set a stop-loss with every trade order, to avoid too much loss.

Take-Profit
A take-profit allows you to prevent profits from disappearing again due to fluctuating price changes.

Broker
A broker is like a bank, but for Forex. They are the link between you and the Forex market.

PIP
With the currency pair EUR / USD this is the fourth number after the decimal point: 1,2327

Fractional PIP
With the currency pair EUR / USD this is the fifth number after the decimal point. 1,24679 Not every broker uses this fractional PIP.

Meta-Trader 4
The Meta-Trader 4 is the software that is used to place trade orders.

Scalper
A Scalper is someone who places multiple trade orders per day and aims to make many small profits.

Daytrader
A day trader is someone who places one or a few trade orders per day with the aim of making an x-number of PIPs profit.

Swing trader
Someone who deals with a large capital and often lets several trades run for a few days.

Position trader
Experienced Forex traders who often run their trades with a large capital for days, weeks or even months.