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Most Common Forex Trading Terminology

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Forex trading comes with its very own set of terms. Understanding these terms is necessary before you jump into forex trade. In this article, we are going to discuss the most common forex terms that you will encounter on your trading

Understanding Forex Market

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The forex market is the market in which participants are able to buy, sell, exchange and speculate on currencies. Like market in real world, the forex market consist of many participants. The forex market s made up of banks, commercial companies, central banks, investment management firms, hedge funds, and retail forex brokers and investors.

Why Trade Forex?

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Forex trading offers a lot of advantages than other financial instruments. Here are just a few reasons to consider forex trading.

What Is Forex ?

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If you’ve ever traveled overseas, you’ve made a forex transaction. Take a trip to France and you exchange your dollars into euros. If your friend in London send you money, he’ll send you poundsterling, and converted into dollar in your bank account. In all of these examples, you’ve made forex transactions.

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