Investors are drawn to Forex trading due to the huge trading volumes and the liquidity provided; representing the largest asset class in the world.
Other factors that make Forex trading popular are:
The amount deposited with TradersTFX at the time of opening a trading account is known as the initial deposit and acts as the margin available to your trading account. The margin amount facilitates the level of gearing or ‘leverage’ allowed for trading.
TradersTFX reserves the right to liquidate the positions taken by you if the initial deposit and variation margin fails to cover the losses incurred.
To learn more about Margin & Leverage click here
A Pip is the smallest increment of movement for a currency.
For example if the value of GBP/EUR increases by a pip, the quoted rate will change from 1.2478 to 1.2479. The number of pips a currency pair moves determines the profit or loss for a trade.
A Forex lot is used to calculate the value of a deal. Each deal is valued at a certain number of lots, which is the standard unit size of the transaction.
One standard lot is typically equal to 100,000 units of the base currency and a mini lot is 10,000 units, whilst a micro lot is 1000 units. With TradersTFX, traders can choose the following lot sizes while trading currency: