Trading in the forex market always comes with an entire layer of technological jargons. Often the stock brokers help you in understanding them. Making the complex terms simplified is a part of the excellent customer service that the brokers provide. As per the Finartmedia Review, the customer service is one of the best reasons to go ahead with Finartmedia. Moreover, the excellent technical tools in this platform make forex trading all the more smoother.
In this article we will discuss some of the technical terms that every forex trader should be aware of, before entering the market.
Brokerage: This term is often the most heard term. Brokerage is the fees that traders pay to the brokerage firm for executing the online trades. Trades online consume a lot of resources. Finartmedia invests a lot in their trading resources to make it a robust trading platform for the forex traders. It becomes crucial that these functionalities function properly in order for the trades to be executed seamlessly.
The amount of brokerage generally varies from broker to broker. Some of the brokers ensured that the charges are less by having a fixed brokerage amount. While others ensure that they charge a percentage of the profit. This is the maintenance fee that every brokerage firm has to charge for smooth operation.
Pip: It is the most common term used by the forex traders. It often refers to the smallest movements in the forex market, which give a direction to the traders for entering or updating their orders.
Leverage: This is a very crucial term in the forex market. It is always calculated as the amount of freedom the trader has compared to the amount he is currently holding. Suppose you’re holding $100 in your account but the leverage being offered is 10X – which means you can purchase assets worth $1000 in the forex market.
It has its upsides and its downsides as well. value can actually bulge up the money that you are holding 0 the downside is that, if the trades go wrong it can wipe out your complete portfolio.
Currency Spread: It is the difference between the rate being offered by the broker and the rate at which the broker buys the currencies. It is a very crucial term being used in the forex trading. And, let us face it – not many brokerage firms offer affordable spreads. Finartmedia has been quite renowned in offering the brokerages at an excellent value.
Currency pair: When one value is quoted against the other value, based on the exchange rates being offered, it is called currency pair. You must have come across terms like EuR/USD 1.546. Here the base currency to quote currency ratio is 1.546.
Bottom line: The right brokerage platform is only the spinal cord for your successful trading career. If the brokerage platform is not selected properly, it can result in making tremendous losses. Finartmedia has been very successful in this niche, thus enabling the user base to trade profitably over the period of time. If you have not signed up yet, its high time you sign up right now!
Disclaimer: This article contains sponsored marketing content. It is intended for promotional purposes and should not be considered as an endorsement or recommendation by our website. Readers are encouraged to conduct their own research and exercise their own judgment before making any decisions based on the information provided in this article.