Terms in Forex Trading that You Must Know


In forex trading there are several terms that are still rarely heard by beginners. As a beginner, you should know the terms in forex trading slowly. Because knowing this will help you become a professional trader. Finding the right position just got easier. Without further ado, here are some terms that exist in forex trading.

A collection of terms in Forex trading that need to be understood

1. Lot

In the world of trading, the first term to know is lots. For the understanding of the lot itself is a unit used in buying and selling shares. The number of lots will determine the amount of investment used by a person.

Usually, players are free to buy the number of lots they want. However, each broker also has its own terms. Generally, in one lot consists of thousands of shares that can be reused. If you buy lots in large quantities, the chances of profit will increase.

2. Broker

In addition to lots, the next term in forex trading is broker. When you want to start trading, you must determine which broker to choose. The term broker itself is a place that can be used for investment or trading.

There are lots of brokers that players can use. Be it a small broker or a big one. Players are free to choose a broker as they wish. However, in choosing a broker must be careful and careful.

Currently, many brokers are illegal and do not have official permits. Usually such a broker, it will be very easy to play. However, you should not be tempted because it could be a fraud. Therefore, choose a broker that is officially licensed.

3. Profit

For the next term, there is profit. Maybe many have heard of this term. Because, it is often used by traders who managed to take profits. Yep, the notion of profit does refer to the profits obtained by players.

Obtaining this profit is not easy, you must use a variety of reliable strategies. Because, if you don’t have a strategy, your position will definitely not be safe. If it is not safe, then a loss can occur.

4. Loss

As mentioned above, there is a new term, namely loss. For the term loss this is the opposite of profit. If profit refers to profit, then loss refers to loss. Not forever a trader will experience continuous profit.

There is also a moment, where the player may experience a loss. Usually loss is caused by the strategy used does not work well. It could also be caused by an unsafe position. So, like it or not, there will be losses, even if only a little.

5. Margin

The last term that needs to be known is margin. The definition of margin is the capital issued by the player to make a deposit. Usually the capital is useful to maintain a position that is already secure. The size of this capital will determine the position of the player.

If the margin issued is large, it is possible that the safe position will continue to exist. However, on the other hand, if the margin issued is small, it is less likely to be in a safe position. So, as a player, you must be smart in determining the size of the funds spent.

If the funds that have been issued are no longer sufficient to maintain the position. Usually a margin call will appear, which is a notification about it. So, players can immediately anticipate so that there will be no more severe losses.

Those are some terms in forex trading that players must know. Because, knowing the terms above will make it easier for players to play. So, it will not be difficult to read the situation in forex trading.

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