Trading basics
The essentials every trader needs — bid and ask, spread, pips, lots, long versus short and more.
- MakaleBid and AskThe best buy price (bid) and best sell price (ask) in the market.
- MakaleSpreadThe difference between the bid and the ask — an instant cost of trading.
- MakalePipThe smallest standard price move in forex, usually the fourth decimal.
- MakaleLot SizeThe standardised quantity of a trade — standard, mini or micro.
- MakaleLong vs ShortBuying to profit from a rise (long) or selling to profit from a fall (short).
- MakaleBull vs Bear MarketA sustained rise (bull) versus a sustained decline (bear) in prices.
- MakaleLiquidityHow easily an asset trades without moving its price.
- MakaleVolumeThe number of units traded — a measure of participation and conviction.