Forex trading explanation

forex trading explanation

volume of this contract is 100 000 euros, but if a trader opens 1 lot of US dollar/franc (. If the breakout occurs on low trading forex agea volume, this signifies that traders show little emotional commitment to the new trend, while the market is likely to return into the range. This provides a trader with the opportunity to go long.

In this case, we decided to close this position and gain profit. They could probably afford to lose more, or went long at a later time during the downtrend, or both. Day traders use tick volume as a proxy of intraday volume. Upon Forex major crosses, The difference between the market maker's sell and buy price is known as spreads. When volume is rising during a market rally, this implies that increasing number of buyers and sellers are lured into the market. Thus, for 10 000 euros we now get: 10 000 EUR *.2436 12,436 USD.

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