Forex Newbie Need To Read This

The largest and most liquid market in the world trades in the trillions! It offers trading 24 hours a day, 5 days a week. This leading market is Forex.
From country to country, the value of currency can vary from day-to-day. Sometimes the variances are quite extreme. Experienced dealers know how to take advantage of these up and downs in order to make the most profit.
As you will find in the equity market, Forex takes many steps to assist you in your dealings, including tools to help mitigate risk, which can assist you in turning a profit regardless of the state of the market. An excellent benefit of Forex is that is has zero dealing commissions while permitting highly leveraged trading with low margin requirements relative to its counterparts in the equity market. Experienced traders will know that large minimum trade sizes make using margin essential to the trader. Equity market traders will know the terms futures, options, spread betting, and CFDs, all of which also apply to Forex.
It is essential to know that When you buy one currency, you in turn sell another. This is so you can anticipate the currency you're buying, and increase the value of the one you are selling. It's easy with Forex. We help you along.
In case the currency that you have bought, does not rise, you have the option to reverse the other currency to lock your profit. Holding on to your positions without altering or closing the position, it is called an open trade.
In pairs of currencies there is the base currency, which is typically the U.S. dollar, and the counter or quote currency. Quote currencies are expressed in units of one U.S. dollar per unit of counter currency (for example, USD/JPY). There are three exceptions to this rule (the euro, the pound sterling, and the Australian dollar) and they are all quoted as dollars per foreign currency.
Forex quotes always contain the bidding and the asking price. The bid is the price the marketer is willing to busy the base currency in exchange for the counter currency. The asking price is the price at which the marketer is willing to sell the based currency, in exchange for its counterpart.
The bid and ask prices are used to determine the spread, which is the difference between the two. Spreads are used to determine the price of establishing a position. The point, or pip, refers to the final digit in the cost.