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Understanding Forex Currency Before you sign up for an account, it's important to know the basics of forex trading from currency pairs to pips and profits and beyond. A currency pair compares the value of two currencies through a numerator/denominator relationship, with a base currency on top...

New forex accounts are opened as margin accounts, letting clients buy or sell currency pairs with total trade size that is much larger than the money used to fund the account. U.S. brokers typically allow individuals to open accounts for as low as $100 to $500 while offering up to 50:1 margin...

Forex quotes display two ratios, a higher ask price and a lower bid price. The last two decimals are often drawn in very large print, with the smallest price increment called a pip (percentage in point). Profits and losses are calculated by the number of pips taken or lost after the position is...

Reversal patterns are those chart formations that signal that the ongoing trend is about to change course. If a reversal chart pattern forms during an uptrend, it hints that the trend will reverse and that the price will head down soon. Conversely, if a reversal chart pattern is seen during...

A Fibonacci retracement is a term used in technical analysis that refers to areas of support or resistance. Fibonacci retracement levels use horizontal lines to indicate where possible support and resistance levels are. ... If the price rises $10, and then drops $2.36, it has retraced 23.6%...

Forex traders use Fibonacci retracements to pinpoint where to place orders for market entry, taking profits and stop-loss orders. Fibonacci levels are commonly used in forex trading to identify and trade off support and resistance levels

How does forex trading work? To trade Forex is to buy and sell currencies – with the aim of making a profit. Forex trading will always involve two currencies at a time, the base currency and the quote currency. The difference in price is where you’ll make your profit or loss. Is forex trading...