Forex Trading are getting increasingly popular. Too often traders hastily learn a few Trading- Techniques and start trading their own money. Many traders especially the younger ones trying to find the Holy Grail in trading. But there is no holy grail at all. Almost every charting platform today have more than 50 300 different indicators and people love to play around with them. Most beginners try to find something that tells them when to get in, and when to get out. But is it really that simple? Foreign exchange also called Forex Trading is the changing of one currency for another for a period of time. Every trader must know that 86 percent of the total volume of this market takes place in the four major currency pairs. They are the EUR-USD, GBP-USD, USD-CHF and USD-JPY. Another important thing that traders have to know is that a broker offers a sell price and a buy price and the different between the two prices are called the spread. This is very simple and important to know, because the broker makes their money with this spread. Not all spreads are the same, every currency pair have a different spread value and some brokers offers more spreads than others. Another important thing that traders have to know is the understanding about a pip. A pip is simply one numeric move in the last digit in the quote. Pips are actually the Forex version of a tick in commodity futures. The Forex market is much larger than any other financial market in the world. Over $1.9 trillion US-Dollar changing hands daily.
