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For example, if an exchange rate between the British pound and the Japanese yen was quoted in an American newspaper, this would be considered a cross rate in this forex trading terminology jargon, because neither the pound or the yen is the standard forex trade chairman of the U. If a person buys into a trade with the expectation that the value of the bought security would rise, it is known as a trade with long position. The same principal applies to all base currencies and leverage amounts. An easy way to think about it is like this: Most brokers will automatically close a trade when the margin balance falls below the amount required to keep it open. This is calculated as follows for the MetaTrader 4 platform: Bid is the best possible price at which a trader can buy any security displayed in the forex market for sale. You will need to understand how to properly read a currency pair quote before you start trading them. It is sensible to maintain adequate funding in your account. On a 5 decimal place currency pair a pip is 0. However, if the exchange rate between the pound and the U. Going Work at home jobs york pa — The opposite of going long, going short involves selling the base currency and buying the counter currency. Pip — The smallest increment of price movement a currency can make. Free or available margin is indicated in the MT4 trading terminal.

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