FAQs tagged as

Forex Fundamentals

  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?

  4. How do you make money trading money?

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

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

  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. How are international exchange rates set?

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

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

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

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

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

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

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

  20. What is the difference between LIBID and LIBOR?

  21. In forex, what are the commodity pairs?

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

  23. How is the forex spot rate calculated?

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

  25. What is foreign exchange?

  26. How often do exchange rates fluctuate?

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

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

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

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

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

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

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

  34. Why do forex traders use a currency converter?

  35. How does leverage work in the forex market?

  36. How is rollover interest calculated?

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

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

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

  40. How does leverage affect pip value?

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

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

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

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

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

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

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

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

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

  50. What was "Operation Wooden Nickel"?

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