If you interested in Forex trading and but you are new to it, then you should read this article. This article will contain all the basic information of Forex and become a door opened to the world of Forex.

For starting, you must learn those jargons that are used in the world of Forex. “Pips” is the vocabulary word that we are talking about. It is perhaps the most used word in forex trading. Overall, in forex, currencies are quoted in 4 decimal places instead of 2 decimal places. For example, $1.1288. So one movement plus or minus of the one thousandth is considered as 1 pip movement. For example, if one currency pair is quoted as $1.1288, one pip increase is $1.1289 while one pip decrease is $1.1287.

Let’s discuss the type of account in Forex. In Forex, you have a choice to open a regular/standard account or a mini account so each pip could have the value of $10 or $1. So if you profit 10pip of movement, it can be either a $100 profit for a regular/standard account or $10 profit for a mini account. Depend on your leverage.

Now I will discuss the most basic concepts of selling and buying in Forex market. You can make money in both sides of the trade. Either you make money from a long view(a view that the currency will increase) or a short view(a view that the currency will decrease)

So as you learn forex and understand how the foreign exchange markets work day to day, you are will be rest assured that these simple concepts will form part of your foundation of forex trading. You will need to remember and understand the definition of a pip, your account types and finally how you enter a trade either with a long or short view.

Below is some of the jargons that you should pay attention on:

Buy Quote - This quote stands for the price that you can buy the base currency for.

Cross rate - is used to express the values between the two currencies when it’s not involving the USD.

Resistance - A high point in a market chart that rescues frequently and where the market will begin a bearish.

Support - A low point in the market chart that recurs frequently and where the market will begin a bullish.

Pivot points - is a short-term trend datum that analysts use as a tool to forecast low (support) and high (resistance) points of the chart. If one of those points is broken it’s expected to create a trend in the same direction.

Going long - investing in the leading currency against the counter currency.

Going short - investing in the counter currency against the base currency.

Lot - $100,000 contract value.

Mini Lot - $10,000 contract value.

Pips - the smallest rise of a change in price (1/10,000 of the value).

Currency shortcuts:

1. USD (U.S. dollars) also known as Greenback, buck

2. GBP (United Kingdom pounds) also known as Cable, sterling, pound

3. CAD (Canadian dollars) also known as Loonie

4. AUD (Australian dollars) also known as Aussie

5. CHF (Swiss francs) also known as Swissie

6. JPY (Japanese yen)

7. EUR (European euros)

8. CNY (China Yuan)

9. HUF (Hungarian Forint)

10. INR (Indian Rupee)

11. THB (Thai Baht)

12. KRW (Korean Won)

13. MXN (Mexican Peso)

14. PLN (Polish Zloty)

15. ZAR (South African Rand)

16. CZK (Czech koruna)

17. HKD (Hong Kong dollar)

18. SGD (Singapore dollar)

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