Despite being one of the largest financial markets in the world, Forex is a relatively unfamiliar territory for retail traders. It was primarily the domain of multinational corporations, large financial institutions, hedge funds, etc. The popularisation of internet trading raised the general public’s interest in trading in forex. At present, individual retail traders are curious to gain forex knowledge. Whether you are a novice or need to reshuffle your understanding, here are some of the most frequently asked questions concerning the forex market.
What is Forex Trading?
Forex or foreign exchange market refers to the global currency trading market. It is the largest and the most liquid financial market across the globe. Trading forex involves trading currencies in pairs on a floating exchange rate, AUD and USD.
What are Currency Pairs?
Base currency and quote currency together make up a currency pair. The term is used to price coins against each other. Conventionally, currency pairs are reflected in abbreviated form, separated by a slash. EUR/USD refers to a currency pair in which the euro is the base currency, and the U.S dollar is the quote currency.
What is a PIP?
PIP denotes ‘percentage in points’. The term means the minor incremental move that an exchange rate can bring. If the exchange rate had been 1.4510 and increased by one pip, the exchange rate would be 1.4511.
What is a ‘Lot’?
The number of currency units a person wishes to buy or sell is many. One lot comprises 100,000 units of currency. Currency pairs are traded in lots which can also be mini, micro or nano in size. Mini lot equals 10,000 units while micro and nano equal 1000 and 100 units.
When is the Forex Market Open for Trading?
Forex market is a market that works 24 hours and begins in Sydney every day. It then moves across the globe as the day begins in each financial centre. It allows the investors to respond to currency fluctuations caused by social, economic or political events – day or night.
What does Long Position Denote?
A long position is when a trader buys the base currency to sell it at a higher price. A long post is when a trader opens a trade to sell the base currency in anticipation that it will further depreciate.
What does Short Position Denote?
When a seller decides to sell the security first to repurchase it later at a lower price, the situation is known to be a short position. Quick work, in other words, means selling a currency with the hope of a future decline in the market price. It is expressed In terms of the base currency.
Next time you buy and sell forex, these answers would undoubtedly help you trade better.
Can we use a forex card in an ATM?
It depends on which debit networks your bank participates in and which debit networks the ATM you’re using engages. Most debit cards are members of one of two worldwide debit networks: Visa or Mastercard. Cirrus or Maestro (on Mastercard) and Electron are two examples (on Visa).
You can see a slew of small logos on the back of your bank card. Look for an ATM with a logo that matches one of the logos. The main drawback of utilising Plus, Cirrus, or other foreign debit networks is that additional costs will always be. Plus, any applicable surcharges and the exchange rate from the local currency to the currency of your home bank., For example, Euro to Canadian dollars.
What currencies are included in the Forex Card?
Your Unimoni Multi-Currency Card can be loaded with up to 8 different currencies. You can also activate six currency wallets from a list of ten currencies you’ve packed and transact with those currencies. The following is a list of the coins that we accept:
- The United States Dollar (USD)
- Euro (EUR)
- Pound Sterling (GBP)
- The Australian Dollar (AUD)
- The Canadian Dollar (CAD)
- Thai Baht (THB)
- United Arab Emirates Dirham (AED)
- The Swiss Franc (CHF)
What are the main characteristics or advantages of the Forex Card?
Our prepaid, multifunctional, multicurrency card is the most innovative travel companion you’ll ever have, rewarding you with cost-effective, convenient, and secure spending options.
The following are some of its essential characteristics:
- Instantaneous, best-in-class Money transfer from one wallet to another
- Competitive exchange rates
- Locking in a currency rate
- Fill your card with multiple currencies.
- Card with a chip and PIN for added protection
- At retail shops, tap and pay to check out faster.
- If your card is lost or stolen, you can get emergency cash or cash from another country.
- Enjoy free ATM transactions at any 55000+ ATMs in the All-Point ATM network.
- Through the MasterCard Lounge Key Program, you can access over 800 airport lounges.