Basic

• Forex is the largest market in the world, with an average trading day of five trillion dollars.
• In the forex market, you're trading a currency pair, which is the exchange rate between two different currencies.
• The euro against the dollar exchange rate is 1.0878, meaning that if you were to go to Europe right now, you would need to exchange 1.0878 dollars to get one euro.
• In the forex market, you make money when the exchange rate rises and falls.
• In the housing market, if the market goes up, the bank still expects to be paid the full purchase price.
• In the forex market, leverage can help you make ridiculous returns, but it can also cause you to lose more than your initial investment.
• In the housing market, a 20% down payment is required to purchase a property.
• In the forex market, there's a thing called a margin call.
• In the housing market, if the market crashes and the property's value drops, the bank still expects to be paid the full purchase price.
• A pip is the fourth decimal place away from the decimal.
• In yen pairs, two decimal places are used for pricing and evaluating.
• In a market that moves 100 pips from two to three, the total movement is 100 pips.
• In a non-yin pair, four decimal places are used for pricing and evaluating.
• If a market moves from 1.0258 to 1.0358, it has moved up ten pips.
• Risk management and calculating the value per pip is different for traders who use random unit sizes.
• Traders can use trading view to understand the amount of units they need to purchase based on the percentage risk of their account.
• Traders can use risk management and calculate the value per pip differently based on their brokerage and platform.
• The value of a pip is calculated by understanding how much you can lose on each trade.
• The exchange rate fluctuates depending on the strength and valuation of each of the currencies, the euro and the dollar.
• If the euro rises in value, it will take more dollars to get one euro.
• If the dollar drops in value, it will take less dollars to get one euro.
• Understanding the value of the euro dollar involves counting numbers from one to four decimal places, representing each decimal as a pip.
• The aussie new zealand currency pair has a current value of 1.0248.
• In the aussie new zealand currency pair, the ones represent the ones decimal, the tens represent the tens decimal, the ones hundreds represent the ones hundreds decimal, and the zero represents the ones thousands decimal.
• A pip is the smallest amount of currency move that we care about as traders.
• The value of the euro dollar is represented as 1.0787.
• The aussie new zealand currency pair can be represented in a table with one decimal, three decimal places, and four decimal places.
• If the aussie new zealand currency pair moved from 1.0248 to 1.0348, it would move by 100 pips.
• The forex market is a market where currencies are traded.
• A currency pair is made up of two currencies, represented by three-letter symbols.
• The dollar yen is another major currency pair, with the dollar being the base currency and the yen being the quote currency.
• The value of the dollar yen is 1.1009.
• The euro dollar is the most popular currency pair in the forex market, with a value of 1.0792.
• The base currency in a currency pair is always worth one, while the quote currency is its value.
• If you have a thousand dollar account and fifty to one leverage, the correct way of using that leverage is to decide on a risk management plan, such as risking between 1 and 2 of your total account balance per trade.
• As a beginner, it's expected to lose most of the time, so it's okay to lose, but if you have your entire account balance of $1,000, it gives you $50,000 in buying power.
• The correct way to use leverage is to always use a stop loss if you're using a leveraged account.
• If you divide your account balance by five dollars, it gives you 200 pips of risk.
• Most traders blow their accounts using leverage because they only have 200 pips of risk.
• A pip on every currency pair except yen pairs is the fourth decimal place.