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Forex FAQs

  1. How can I invest in a foreign exchange market?

  2. What is the correlation between American stock prices and the value of the U.S. dollar?

  3. What do the terms weak dollar and strong dollar mean?

  4. How do you make money trading money?

  5. How does margin trading in the forex market work?

  6. How do I convert dollars to pounds, euros to yen, or francs to dollars, etc.?

  7. Why is the U.S. dollar shown on the top of some currency pairs and on the bottom of others?

  8. What is the difference between trading currency futures and spot FX?

  9. Why is currency always quoted in pairs?

  10. How can I trade in cross currency pairs if my forex account is denominated in U.S. dollars?

  11. What are the rules for placing stop and limit orders in forex?

  12. Is it possible to trade forex options?

  13. How do I use an arbitrage strategy in forex trading?

  14. How are international exchange rates set?

  15. What impact does a higher non-farm payroll have on the forex market?

  16. Is there any way to check the historical rates of different currencies?

  17. What is an overnight position in the forex market?

  18. What should I look for when choosing a forex trading platform?

  19. What is a pip and what does it represent?

  20. What does "outrights" mean in the context of the FX market?

  21. Is there a buy-and-hold strategy in forex, or is the only way to make money by trading?

  22. How do you lose money in the Forex market?

  23. What is the difference between LIBID and LIBOR?

  24. In forex, what are the commodity pairs?

  25. Why is the British pound / U.S. dollar currency pair known as "trading the cable"?

  26. What is the Big Mac index?

  27. How is the forex spot rate calculated?

  28. When and why did the euro make its debut as a currency?

  29. What is the name of the currency in New Zealand?

  30. What currency is affected by the interest rate decisions of the Bank of England (BoE)?

  31. What is foreign exchange?

  32. How often do exchange rates fluctuate?

  33. How did derivatives trader Nick Leeson contribute to the fall of Barings Bank?

  34. How did currency trader John Rusnak hide $691 million in losses before being caught for bank fraud?

  35. How does leverage work in the forex market?

  36. Where is the central location of the forex market?

  37. How is rollover interest calculated?

  38. How do businesses decide whether to do FDI via green field investments or acquisitions?

  39. How did George Soros "break the Bank of England"?

  40. What is the value of one pip and why are they different between currency pairs?

  41. How does leverage affect pip value?

  42. Are eurodollars related to the currency called the euro?

  43. What is arbitrage?

  44. Why can't I have fixed rollover costs in forex?

  45. What are the most common currency pairs traded in the forex market?

  46. What was "Operation Wooden Nickel"?

  47. In the forex market, how is the closing price of a currency pair determined?

  48. How does the foreign-exchange market trade 24 hours a day?

  49. Why isn't the EUR/USD currency pair quoted as USD/EUR?

  50. How do I calculate forex pivot points?

  51. What is a currency converter and how do I use one?

  52. What will happen to my U.S.-based stock portfolio if the U.S. dollar substantially decreases in value?

  53. How do central banks acquire currency reserves and how much are they required to hold?

  54. How is spread calculated when trading in the forex market?

  55. What am I buying and selling in the forex market?

  56. What is hedging as it relates to forex trading?

  57. Why do forex traders use a currency converter?

  58. How are foreign exchange rates affected by commodity price fluctuations?

  59. Is there a world currency? If so, what is it?

  60. If a country's currency is determined by the strength of its economy, why isn't the U.S. dollar worth more than the British pound?

  61. What methods can be used to fund a forex account?

  62. What are the advantages of using a mini forex account for trading?

  63. What does rollover mean in the context of the forex market?

  64. What is the best method of analysis for forex trading?

  65. How do companies benefit from interest rate and currency swaps?

  66. Is scalping a viable forex trading strategy?

  67. Can I trade a currency when its main market is closed?

  68. What types of accounts are available for forex trading?

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Last Questions Asked:
  1.

    How can I invest in a foreign exchange market?

  2. What do the terms weak dollar and strong dollar mean?

  3. What is the correlation between American stock prices and the value of the U.S. dollar?

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