Internet currency trading is not easy, but here are some things that should be known by any trader. Each forex exchange on the market involves simultaneously buying a currency and selling another currency. These two currencies are called currency pair. Besides, there are major currencies and minor currencies. The most traded currencies are called major. There are 7 major currencies: USD, EUR, JPY, GBP, CHF, CAD and AUD. All other currencies in the world are minor. There are some examples: NZD (New Zealand dollar), ZAR (South African rand) or SGD – Singapore Dollar that are listed in any teach me to trade tutorial.

Teach me to trade tips will also let you know about crossed currencies. They are currencies where the US dollar is not involved. Forex trading information say that the pairs involved instead are the result of two transactions with the dollar. For example, when you trade EUR / GBP it is the equivalent of two transactions: EUR / USD and GBP / USD.  Because it involves indirect exchanges, the transaction cost is higher. Some examples of crossed currencies: EUR / JPY, GBP / EUR or GBP / JPY.
Basic currency is frequently used terms in any teach me to trade guide. The basic currency is the first currency in a pair. It shows how much it is worth the basic currency (the first one) in
units of the second. For example USD / JPY = 103.14. This means that $ 1 is worth 103.14 yen.

Forex trading guides also talk about rated currency. It is the second currency in a pair.
Furthermore, a PIP (percentage in points) is the smallest unit of measure for any currency. Almost all currency pairs consist in 5 decimals. In order to define easily PIP, you can take the following example:
The pair EUR / USD is worth 1.2551. Then the last figure (the fourth after the decimal) is a PIP.
If during a trade, the pair will change in 1.2552, then the pair has increased by 1 PIP. PIP can also be called point.

To continue with, if you start trading forex, you must know that TIC is the smallest time unit. Each bar in the graphs is a unit of measurement. It may be 1 minute, 5 minutes, 60 minutes a day, a month. Any teach me to trade software, gives you the opportunity to study graphics according to the period of time you want. Each line (bar) on the chart has: value of opening (OPEN), the highest value (HIGH), the closing value (close), the smallest amount (LOW).

Coverage (MARGIN)

When an investor opens an account with a forex broker, he must submit an initial amount, which
represents the investment fund. Every time a trader executes an order, a certain percentage of your account balance will be used for that exchange (trade). To cover any moves against you,
money in the account will be used to cover the loss.

The price offered (BID Price)

It is the price at which the market is ready to buy a specific pair in forex. At this price,
traders may sell the basic currency. It always appears to the left of the symbol.

Jhoana Cooper

http://www.articlesbase.com/day-trading-articles/will-you-teach-me-to-trade-716775.html