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Introduction to Trading

Forex is a decentralized global market where all the world's currencies are traded against each other, and traders make a profit or loss from the currencies’ value changes. Forex Market is also known as Foreign Exchange Market, FX or Currency Trading Market.

The financial market consists of many markets of different "specialization", such as the commodity market, the securities market, the foreign exchange market (Forex), the credit market. Each of them has its own bright and dark sides, pitfalls and benefits, and investors prefer to trade in the markets that meet their needs and expectations. The foreign exchange market stands out for its huge daily turnover...

CFD (Contract for difference) is an agreement between two parties, “buyer” and “seller”, on paying each other the difference between the opening and closing prices of the traded instrument.

Leverage in Forex is the ratio of the trader's funds to the size of the broker's credit. In other words, leverage is a borrowed capital to increase the potential returns. The Forex leverage size usually exceeds the invested capital for several times.

Spread is the difference between Bid and Ask prices. It is calculated in pips. Spread could have a significant impact on the profitability of the trades.The size of the spread is an important factor during trading, because high spread results in a significant share of loss to the client during active trading.

Margin trading is speculative buying and selling of assets using a brokerage firm's funds, which it lends against collateral.

Swap (Forex Rollover) is a charge or interest for holding trading positions overnight to the next forex trading day.

Pip is the smallest change an exchange rate of a currency pair can make on the market. A pip is usually, but not always, the last decimal place of a quotation.