All things are difficult before they are easy. For forex beginners, learning forex terms might be not easy because it is the first and key step to know forex. Only by understanding the complicated forex terms, can forex traders carry out further study of forex knowledge. Thus forex terms pave the way to successful forex trading. Before learning to use forex software and trade forex, forex traders should learn the following vital forex terms often seen in forex investment.
Ask/Offer: Price at which broker/dealer is willing to sell.
Bid: Price at which broker/dealer is willing to buy.
Leverage: The amount, expressed as a multiple, by which the notional amount traded exceeds the margin required to trade. For example, if the notional amount traded (also referred to as "lot size" or "contract value") is $200,000 dollars and the required margin is $4,000, the trader can trade with 50 times leverage ($200,000/$4,000).
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