[English] Lesson #2 – Forex concepts: currency pairs, pips and points, lots, profit calculator

Learn trading with our Forex Basics course for beginners. In episode 2, you will learn the basic trading instruments of Forex: currency pairs, lots, pips and points, and leverage. You will also know how to calculate your potential profit and open a trading account to make your first trade.

00:26 Currency pairs
00:54 Pips and points
01:56 Leverage: trading Forex with smaller investments
04:13 Calculating your potential profit
05:40 Opening your trading account

#OctaFXForBeginners #ForexTradingForBeginners #HowToTradeForex #fx #Forex

Key takeaways of this lesson:

• Currencies are quoted in pairs. The first currency in the pair is called the base currency, and the second one is called the quote currency. The pair's price indicates how much of the quote currency is needed to buy one unit of the base currency, for example, one EUR.

• Each pair has five-digit pricing except USD/JPY with three-digit pricing. The last digit is called a point, and the second to last, a pip. One pip equals ten points.

• The standard volume for trading on Forex is called a lot and equals 100,000 units of the base currency. For example, to buy one lot of the EUR/USD = 1.18165 you need 118,165 USD. You can enter the market with smaller amounts of currency with OctaFX divided lots: a mini lot, which equals 10,000 units of the base currency, and a micro lot, which equals 1,000 units of the base currency.

• Leverage is a loan your broker gives you when you open an order. It allows you to operate larger amounts of currency than you invest. For example, if you trade with 1:500 leverage, then to buy one lot, you need a 500 times smaller amount of currency.

• To calculate the potential profit of your order, you need to know the price of one pip. To make the calculation easier, you can use the OctaFX profit calculator, where you only need to fill in the order details.

• To start trading, follow the link below in the description and fill out a short form. Make sure to provide accurate information because it helps OctaFX verify your identity and keep your money safe.

[josephinelenares]

Thank you for this.i want to learn moreab out this trading

[bethel-epbl]

I'm new on forex trading I haven't traded before and I'm really interested to learn and start earning

[razymata]

Pls I need someone to put me through 🙏