Forex Appendix – Forex Definitions: For the purposes of this document, and for an understanding of general industry terms, we have put together a list of terminology definitions: Brokerage = legal entity allowed to open customer accounts and collect customer money. Broker = an employee of the brokerage that is working with a customer. Introducing […]
In recent years, trading changed completely with the Internet being available to more and more people. Brokers needed to adapt to the new situation and traders as well. Therefore, online trading became a reality and orders are being opened/closed in a blink of an eye due to state of the art execution technologies now available. […]
Risk-management is a notion that defines trading in general and it should be interpreted on both sides: trader’s and broker’s side as well. The whole industry is a risky one and there is virtually no forex broker that is not displaying the risk disclaimer on the first page of its website, stating that trading leveraged […]
A currency swap is a risk management tool and companies are using these agreements to reduce the exposure to currency fluctuations. Before moving forward, it is important to signal that there is a difference between currency swaps as a risk management tool and the forex swap rate. A forex swap rate is an interest that […]
Foreign exchange trading represents selling or buying a currency pair with the idea of making a profit from the moves that characterize this market. The difference between trading equities or futures, as a matter of fact, is that the forex broker can choose to trade against its traders. If this is happening, this is known […]
There are many ways to trade the forex market as it depends very much on the capital that is invested. Because of capital constraints, the clear majority of retail traders is using retail brokers as intermediaries to gain access to the forex market. If capital is not an issue, there are brokers that allow access […]
