FAQs tagged as

Forex Theory

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

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

  3. How do you make money trading money?

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

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

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

  7. Why is currency always quoted in pairs?

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

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

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

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

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

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

  14. In forex, what are the commodity pairs?

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

  16. What is the Big Mac index?

  17. How is the forex spot rate calculated?

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

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

  20. What is foreign exchange?

  21. How often do exchange rates fluctuate?

  22. How is rollover interest calculated?

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

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

  25. How does leverage affect pip value?

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

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

  28. What was "Operation Wooden Nickel"?

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

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

  31. Why do forex traders use a currency converter?

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

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

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

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

  36. 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?

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

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

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

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

  41. How does leverage work in the forex market?

  42. How do I calculate forex pivot points?

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