User Name: Password:      Register - Lost password?

Forex News Blog
Back to The Headlines
Friday December 30, 2016 - 23:02:19 GMT
. - .

Share This Story:
| | Email

Fundamentals about the forex trading: Beginners tutorials.

It's time for us to learn how to trade the Forex market .In the Forex market there many different trading currency pairs with different volatility and spread. Traders chose their specific currency pair and execute their trade with the help of the trading platform offered by the broker. Before we get into the details lets learn how to read the “Forex Quote”.

We all know that currency is traded in pairs. Reading the Forex quote is very simple! Let’s say the quote of “GBPUSD” is 1.44128.The Forex quote is often written with a slash which separates the two major currencies (GBP/USD).The first currency in Forex quote is known as “base currency” and the second currency which stays on the right side of the slash is known as “quote currency.”

Let's see an example


This means if you want to buy 1 Great Britain Pound than you need 1.44128 $.In other words, it can be said that with 1 Great Britain pound you can get 1.44128 dollars. Seems pretty easy! Hold on. We have much more to tell you about the forex quote. Forex quotes are always quoted with two prices, the Bid Price and the Ask Price.

Let's see an example.


The first price on the right-hand side of the equal sign is known as “bid price” and the second price is known as “ask price”. Remember that the asking price is always greater than the bid price. In general bid price is the price by which broker is willing to buy any single asset whereas ask price if the offered price by the broker to sell that asset.

We have talked about the capital cost of trading the Forex. This is where the term spread comes. “The difference between the asking price and bid price is known as the spread”. This is the commission which the brokers’ charges to a trader for their service. In the above example, the spread of GBP/USD is “3 pips”. Traders make a profit in terms of pips gain. Before taking any trade, the pip value is set with the variation of lot size by the trader. If the lot size is 0.1 for a standard account this means for every single pip trader will make a profit of 1$.So if the trader makes a 40 pips profit then we can say that he made a 40$ profit.

We are now able to read the Forex quote in the financial market successfully. So when do we buy or sell a pair? Traders enter into the long trade (Buy) when they think the price will go higher and goes for short (Sell) when the price goes down.

Let's see some examples for clarification

Let's say that you read news about US economy. The news was terribly bad for us economy and you are certain that its impact will be huge in the financial market. Keeping the bad economic data of USA you went long on EURUSD since US Dollar is broadly weak. After  1 hour you came to your trading station and found that the “EURUSD” has rallied more than 120 pips from your entry point!120 pips profit in your pocket just within one hour of the news release.

Just after one week, the Federal Reserve Bank announced their “interest rate” decision. Remember, a rate cut in the interest rate makes the currency weaker whereas rate hike makes it extremely stronger. You were watching the news and spotted the rate hike by the Federal reserve bank of America. Keeping the news in mind you entered short on “GBPUSD”. After 2 hours you came back and saw your trade is running with 200+ pips profit! So if you had 0.1 lot trade open in your standard account you would have made 200$ profit.

Trading the forex market with the high lot is much common since there no needed to deposit a huge amount of money in your trading account. Forex broker offers high leverage which allows you to open a trade with the high lot even though if you don’t have enough capital. Typically 500:1 leverage means that, if you have 100 dollar deposit in your trading account then you can trade 50000 US dollar worth of equity in the forex market.

You might be wondering what actually the word “Pip” means. Don't worry! Once you read the next few lines, you will be able to tell what pip is. The movement of the financial instrument or currency pair is measured in pips .For instance, assume that you have opened a long trade in “GBP/USD at price 1.4423” and the market move in the favor your direction for the next 1 hour. After one hour you found that the value of “GBPUSD quote is 1.4453”.The market moves in your direction for 30 points. This “thirty point” is known as 30 pips in forex.

Many Forex brokers offer 5 digit pricing for the major currency pairs. The fifth digit is known as pipettes. Pipettes help the trader to get more precise raw price data of the currency pair movement. In the Forex industry, it takes 10 pipettes to make one pip.

Lot size is very important in the Forex trading since, its value determines how much money you are going to make or lose for every single pip movement for a certain currency pair.

Understanding the lot size/volume is pretty simple. Some traders lose their mind by trying to understand the lot size with unit calculations. We have decided to make your forex trading journey simple and smooth so that you don’t need to worry about the complex calculation.

Every single pip that moves in our direction gives us profit. For instance, we entered long on “EURUSD” at 1.1139 and the market moves 20 pips in our favor. This 20 pip is our net profit from trading the EURUSD pair. Profit from "traders to traders" will vary according to the lot size which they used while taking the trade. Technically speaking, trading with high lot size will always generate a large amount of profit or loss since the value of single pip will be much higher than that of low volume trade.


Article was written by Dwayne Buzzell

An economist, Forex trader and Forex writer.  I have a keen eye for spotting international trading trends. My Forex experience as an individual trader has been thoroughly enjoyable and has brought significant returns for myself and my clients. Get more forex news from my site.


Forex Trading News

Forex Research

Daily Forex Market News
Forex news reports can be found on the forex research headlines page below. Here you will find real-time forex market news reports provided by respected contributors of currency trading information. Daily forex market news, weekly forex research and monthly forex news features can be found here.

Forex News
Real-time forex market news reports and features providing other currency trading information can be accessed by clicking on any of the headlines below. At the top of the forex blog page you will find the latest forex trading information. Scroll down the page if you are looking for less recent currency trading information. Scroll to the bottom of fx blog headlines and click on the link for past reports on forex. Currency world news reports from previous years can be found on the left sidebar under "FX Archives."

Actionable trading levels delivered LIVE to YOUR charts

GVI Trading. Potential Price Risk Scale
AA: Major, A: High, B: Medium

Mon 27 May 2019
AAGB/US- Holiday
Tue 28 May 2019
A 14:00 US- Consumer Confidence
C 13:00 US- Case-Shiller
Wed 29 May 2019
A 08:55 DE- Employment
AA 18:00 US- BOC Decision
A 18:30 US- EIA Crude
Thu 30 Mar 2019
AAEZ/CH- Holiday
A 12:30 US- Weekly Jobless
Fri 31 Mar 2019
AA 10:00 EZ- Flash HICP
A 12:30 US- Personal Income, Spending, Deflator
AA 14:00 US- Final Univ of Michigan

Global-View Affiliate Program

We are starting an affiliate program to market some of our products.

Send me an email if you would be interested or if you know someone who would like to be an affiliate. Generous commissions payout for those accepted.

Put the word "affiliate" in the email subject line.

Contact us

Start trading with forex broker Markets Cube


Retail Forex Brokerage Changing!

Are you looking for your first broker or do you need of a new one? There are more critical things to consider than you might have thought.

We were trading long before there were online brokers. Global-View has been directly involved with the industry since its infancy. We've seen everything and are up-to-data with recent regulatory changes.

Our Best Brokers listing section includes:Forex Broker Reviews, Forex Broker Directory, Forex Broker Comparisons and advice on How to Choose a Forex Broker

If would like guidance, advice, or have any concerns at all ASK US. We are here to help you.

SEE Our Best Brokers List

Currency Trading Tools

  • Live rates, currency news, fx charts. 

  • Research reports and currency forecasts.

  • Foreign Exchange database and history.

  • Weekly economic calendar.

Directory of  Forex trading tools

Terms of Use    Disclaimer    Privacy Policy    Contact    Site Map

Forex Forum
Forex Trading Forum
Forex Forum + forex rates
Forex Forum Archives
Forex Forum RSS
Free Registration

Trading Forums
Currency Forum Guide
Forum Directory
Open Forum
Futures Forum
Political Forum
Forex Brokers
Compare Forex Brokers
Forex Broker News
Forex Broker Hotline

Online Forex Trading
Forex Trading Tools
Currency Trading Tools
Forex Database
FX Chart Points
Risk/Carry Trade Chart Points
Economic Calendar
Quicklinks to Economic Data
Currency Futures Swaps
Fibonacci Calculator
Currency Futures Calculator

Forex Education
Forex Learning Center
FX Trading Basics Course
Forex Trading Course
Forex Trading Handbook

Forex Analysis
Forex Forecasts
Interest Rate Forecasts
Central Bank Forecasts

FX Charts and Quotes
Live FX Rates
Live Global Market Quotes
Live Forex Charts
US Dollar Index Chart
Global Chart Gallery
Daily Market Tracker
Forex News
Forex Blog
Forex News
Forex Blog Archives
Forex News RSS
Forex Services
Forex Products
GVI Forex
Free Trials
FX Bookstore
Managed Forex Accounts
FX Jobs and Careers
Jobs USA
Jobs UK
Jobs Canada

Forex Forum

The Global-View Forex Forum is the hub for currency trading on the web. Founded in 1996, it was the original forex forum and is still the place where forex traders around the globe come 24/7 looking for currency trading ideas, breaking forex news, fx trading rumors, fx flows and more. This is where you can find a full suite of forex trading tools, including a complete fx database, forex chart points, live currency rates, and live fx charts. In addition, there is a forex brokers directory where you can compare forex brokers. There is also a forex brokers hotline where you can ask for help choosing a forex broker that meets your individual fx trading needs. Interact on the same venue to discuss forex trading.

Forex News

The forex forum is where traders come to discuss the forex market. It is one of the few places where forex traders of all levels of experience, from novice to professionals, interact on the same venue to discuss forex trading. There is also the GVI Forex, which is a private subscription service where professional and experienced currency traders meet in a private forex forum. it is like a virtual forex trading room. This is open to forex traders of all levels of experience to view but only experienced currency tradingprofessionals can post.

Currency Trading

Currency trading charts are updated daily using the forex trading ranges posted in the Global-View forex database. You will also find technical indicators on the fx trading charts, e.g. moving averages for currencies such as the EURUSD. This is another forex trading tool provided by

Forex Brokers

The forex database can be used to access high, low, close daily forex ranges for key currency pairs, such as the EURUSD, USDJPY, USDCHF, GBPUSD, USDCAD, AUD, NZD and major crosses, including EURJPY, EURGBP, EURCHF, GBPJPY, GBPCHF and CHFJPY. Data for these currency trading pairs dating back to January 1, 1999 can be downloaded to an Excel spreadsheet.

Forex Trading

Forex chart points are in a currency trading table that includes; latest fx tradinghigh-low-close range, Bollinger Bands, Fibonacci retracement levels, daily forex pivot points support and resistance levels, average daily forex range, MACD for the different currency trading pairs. You can look on the forex forum for updates when one of the fx trading tools is updated.

FX Trading

Global-View also offers a full fx trading chart gallery that includes fx pairs, such as the EURUSD, commodities, stocks and bonds. In a fx trading world where markets are integrated, the chart gallery is a valuable trading tool. Look for updates on the Forex Forum when the chart gallery is updated.

Forex Blog also offers a forex blog, where articles of interest for currency trading are posted throughout the day. The forex blog articles come from outside sources, including forex brokers research as well as from the professionals at This forex blog includes the Daily Forex View, Market Chatter and technical forex blog updates. In additional to its real time forex forum, there are also Member Forums available for more in depth forex trading discussions.



By using this website, you are agreeing to our Privacy Policy and Terms of Use, and Cookie Policy

Copyright ©1996-2019 Global-View. All Rights Reserved.
Hosting and Development by Blue 105