Forex for Beginners: How to Play Forex Online? Before starting forex trading, then you should first understand basically what is forex, what is forex trading, and then find out how to play forex online. Let's discuss them one by one. Forex is an abbreviation of foreign exchange or also commonly abbreviated as FX, while in Indonesia is also called the term foreign exchange which means the exchange rate of foreign currency or currency other than rupiah. Then what is forex trading? Trading forex means to exchange or trade one currency with other currencies. In forex trading, one currency will be paired with another currency. Currencies are also traded in forex trading contracts having a unit size called a lot valued at USD100,000. These currency pairs are called pairs. So for example euro (EUR) paired with US dollar (USD) it will be euro / US dollar so it is called as EUR / USD. For another example for example USD paired with Japanese yen or Japanese yen (JPY) it will be referred to be USD / JPY.
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| Forex for Beginners How to Play Forex Online |
Pair above means exchange rate or currency of a country traded in pairs with currency of other country. Well, the exchange rate or price pair is called the quotation of forex trading or quotes. In pairs, the currency in the left position is referred to as the base currency. While the currency on the right is referred to as the currency pair. The base currency (which is on the left) is always worth 1 (one). While the price shown in the pair is the price of the currency pair (which is on the right) against the base currency (which is on the left). Pip is an abbreviation of percentage in point. The price of the currency is traded with a value of 2 to 4 decimal places behind the comma. For example EUR / USD = 1.1100 has increased to 1.1103 then the euro has strengthened 3 pips. But pip is often referred to as points (points) in the world of forex trading.