CHAPTER 5 - FOREX REVIEW
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Forex Trading Review”
If you’ve been following along so far you should have a good understanding of the basics of forex trading. You should have a good handle on pips, lots, exchange rates, and what the trading spread is. You should also know a bit about forex brokers as well as trading margins and leverage.
You should also understand that all forex trading is based on the idea that since exchange rates fluctuate you can make a profit by buying a currency at one rate and selling it when its value increases, or by selling it and buying back more when the value decreases. You also know that nobody’s perfect and everyone loses money sometimes– good forex traders just make more
than they lose.
Here’s a quick glossary of some of the more important things we’ve covered: