For any subject or topic, there is always a thing, or we can better put it that there are some basics that one has to know before delving. Forex trading is what people take time to learn before going into the market. The course might run for a while depending on your understanding of the details. The best forex trading course is the one that would take into consideration different levels of students, or we can put as prospective forex traders. We might be wrong if we generalize everyone learning the forex trade as forex traders, not everyone that knows the trade.
It is important that any forex trading
course has to analyze the rudiments of forex trading before going too far, one might be lost as forex trading course continues without getting a good hold of the terminologies used. You have to know what forex traders mean when they talk about Pips, Leverage and Lot Size. These three terms are like the basic in forex trading; there are others to know as we go on. Forex traders might start speaking in the language of forex by saying they want to go long on a trade or go short. ‘To go long’ and ‘to go short’ is a language that forex traders often use when they want to say that they have made a decision to buy or sell.
Lot size has become a difficult term for some people to understand clearly, do not worry as we are going to simplify the term in this read. What we sell in a typical market out of forex trading is goods, the narrative is completely different for forex trading. We buy and sell currencies on forex, and the manner in which we buy or sell is in a pack. That pack is what we call the lot size. Your lot size can be translated to as your trading size; it determines your profit and your loss. For beginners, it is good to start with a micro lot size when the seasoned forex traders use a standard lot size.
The word ‘Pips’ has always been a recurrent word we must have come across when forex traders are discussing the market spread of chart. The first advice to a beginner is never to miss the concept of pips. The moment you miss this basic, your forex education would be very shallow and shaky. Every action we deal with in forex has to do with pips. It is the smallest unit that a currency pair can change. Just like our cells are important to live organisms. It is calculated starting from the fourth decimal place. Another terminology used in forex is leverage, and that has become what brokers offer us.