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What are the prices of currencies in the Forex?
Forex early was not accessible to everyone. But now, with the advent of the Internet, anyone who can access the Internet can open an account and Online Forex currency trading can begin. The Forex market is an OTC market and accessible to everyone.Forex market is not exactly in the conventional sense, since it has no physical trading focal points or places.
The market which buys and sells currency at the market rate is called the spot market.In the currency market value of the currency is expressed in relative terms. Suppose Euro / Dollar is 1.32000. Then the value of one euro is $ 1.32000. A currency pair is being operated. The first currency in the pair is called the base currency.
The second currency in the pair is known as a currency or currency terms. The price at which you can sell the base currency, known as the sales price or the Bid price. For example, if the currency pair EUR / USD (euro / dollar) is shown in the chart at 1.3200, you may sell one Euro to the sale price of $ 1.3200. The price at which you can buy the base currency is known as the Ask price. In the above example, you can buy a euro ask price of $ 1.3202. The difference between these two prices and the Bid Ask, in this case are 2 cents, is known as Spread.
When trading Forex currency bought not as if we were to buy a bank, but will operate in the Forex with lots, there are three different types of lots. Include mini, standard and micro. The standard lot you can have 100,000 units of base currency. In the mini lot is reduced to 10,000 units. In the batch processor is reduced to 1000 units. A merchant may have three different types of accounts. The deposit must be taken to open or maintain a position known as margin.
There are two types of operations in the Forex. The first is the long position when the investor tries to win with an increase in the price. The second is the position in which the investor aims to win with a decrease in the price this is called short position is when we put on our account a sale rather than a purchase. These are some of the basics of Forex.