Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
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For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Currency pairs are formed with Base and Quoted currencies. The first three letters are the base currency and the last three are the quoted currency. For example EURUSD, EUR is the base, and USD is the quoted currency.
​
For currency pairs that are USD quoted, 1 PIP is the movement of the currency pair in either direction by .0001
Forex and Futures Trading
Trading Platform
To a large extent, your trading routine and your trading style are shaped by the platform you will be using. Once you master the trading techniques, then it will be easy to switch between platforms. If you are serious about Forex and is want to develop a secondary source of income trading Forex, then spend time selecting the trading platform that will suit you.
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I use NinjaTrader and TradeStation. The trading platform decision should come down to how good the charting software you get with the platform, how much technical analysis you can perform using the platform, the ease of placing trades, the execution speed, order entry, etc. Difficulty to perform any of the above tasks will become a pain point when you start trading for real. Download the trial version of the desktop trading platforms. Practice trading using the trial platform and evaluate the platform for ease of use and quality of charts and execution. The testing will show how good the platform is and how comfortable you are to plot charts, build and execute trades, and perform technical analysis.
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Popular platforms for trading Forex include MT4, NinjaTrader, TradingView, TradeStation, etc. There are desktop platforms available from brokers. Once you signup with a broker, the broker will provide there own desktop trading platform or MT4. MT4 is a universally acceptable platform. All brokers support MT4. MT4 is free. The rest of them involve some type of subscription fee or a one-time license fee.
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Charting
Candlestick, Hiekenashi, OHLC are some of the popular chart types. I use the OHLC. It gives me the same information as the candlestick chart and I can squeeze more bars into the chart area using OHLC. You should familiarize charing using Candlestick. It provides the basics of price action. Understanding how the price action is represented in a Candlestick chart is crucial to interpret the charts. Once you become familiar with reading charts with Candlestick, then you can experiment with other types of charts such as OHLC, and Hiekenashi. Settle down with the one chart type that can give the information you need to make trading decisions.
