“If you have traveled, you already have a Forex trading experience. You are paying with the currency of your country to buy the currency of the country you are staying in. People who know the Forex market buy or sell currencies for two reasons: to profit from the difference of the buy and sell prices, or to protect their investments. The Forex transactions are exchanged between the market participants, so there is no “open” or “close” of the market, excepting the weekends.

In a few words, Forex trading go-ahead from Monday morning in New Zealand up to midnight Friday on the west coast of the USA. You might feel comfortable trading the major currency pairs, or you like to deepen your knowledge about the strength of an exotic pair, or you trust the process to a professional analyst who would help you keep up with the latest updates and events. As time passes, traders bring their own strengths and preferences to their trading and so on they create their own trading style.

Market participants have different goals; companies that are controlling currency exposure to protect their financial situation; fundamentals traders who focus on factors that affect the power of the whole economies; technical traders who look for price patterns to find what will happen next.

Different market participants evaluate differently the factors which indicate the behavior of the Forex market: interest rates, legal regulations, financial announcements and events which happen spontaneously or made by man. These are factors that change the direction of the market, here, just keep in mind that in Forex you can be profitable in both cases, when the prices fall and when they arise.

Per analogy with your vacation pocket money, forex trading is always involving two currencies. The base one is the currency you are buying or selling, and its price is given in the quote currency: Base currency/Quote currency – EUR/USD – 1/1.0500 – One Euro costs 1.05 US dollars.
Margin is usually explained with leverage, so the margin is the money you borrow from the forex service provider you are working with. Leveraging amplifies the profit or loss from a given trade. A 2% margin means that you can command positions that are 50 times greater than the funds in your account.
A lot is a unit used in trading, especially on Webtrader. Usually, 1 lot is 100,000 of the base currency. In other words: 1 lot = 100,000 units of base currency , 1 mini-lot = 10,000 units of base currency , 1 micro-lot = 1,000 units of base currency.

Trading platforms allow you to trade less than 1 lot. To trade 10,000 of the base currency (called a mini lot), type 0.1 lot into the Volume field. To trade 1,000 of the base currency (called a micro lot), write 0.01 lot. The smallest enabled trade size is a micro lot.