Things that you might want to know about Forex Market Explained in simple ways


Broker-Dealer

In financial services, a broker-dealer is a natural person, company or other organization that engages in the business of trading securities for its own account or on behalf of its customers. Broker-dealers are at the heart of the securities and derivatives trading process.
Wikipedia


Equity

The value of an account if all positions were closed.


ETF

An Exchange-Traded Fund is an investment fund traded on stock exchanges, much like stocks. An ETF holds assets such as stocks, commodities, or bonds and generally operates with an arbitrage mechanism designed to keep it trading close to its net asset value, although deviations can occasionally occur.


Contract For Difference (CFD)

A contract for difference (CFD) is a popular form of derivative trading. CFD trading enables you to speculate on the rising or falling prices of fast-moving global financial markets (or instruments) such as shares, indices, commodities, currencies and treasuries.
The main differences between CFD trading and Forex trading is that CFD trading involves different types of contracts covering a diverse set of markets, such as indices, energy, and metals, whereas Forex offers pure currency trading.


Forex Market

For-ex stands for Foreign exchange. It is the largest financial market in the world. The forex market is the “place” where currencies are traded. But not only currencies, brokers like etoro (my favorite, because it is really easy to use) do also have popular stocks like Facebook, Amazon, etc.


Forex Trading Robot

A forex trading robot is a computer program based on a set of forex trading signals that helps determine whether to buy or sell a currency pair at a given point in time.


Margin Call

A margin call occurs when the value of an investor’s margin account (that is, one that contains securities bought with borrowed money) falls below the broker’s required amount. A margin call is the broker’s demand that an investor deposit additional money or securities so that the account is brought up to the minimum value, known as the maintenance margin.
A margin call usually means that one or more of the securities held in the margin account has decreased in value below a certain point. The investor must either deposit more money in the account or sell some of the assets held in the account.


MetaTrader 4

MT4 is an electronic trading platform (technical analysis) widely used by online retail foreign exchange speculative traders. It was developed by MetaQuotes Software and released in 2005. The software is licensed to foreign exchange brokers who provide the software to their clients.

You can also download the MetaTrader4 from your broker. They will be giving you a specific software.


MQL5

MetaQuotes Language 5 (MQL5) is a specialized high-level object-oriented programming language that allows creating trading robots and technical indicators. It is based on the concepts of the well-known and popular C++ programming language.
www.mql5.com


OTC

Over-the-counter (OTC) refers to the process of how securities are traded for companies that are not listed on a formal exchange such as the New York Stock Exchange (NYSE). Securities that are traded over-the-counter are traded via a broker-dealer network as opposed to on a centralized exchange. These securities do not meet the requirements to have a listing on a standard market exchange.


S&P 500

The S&P 500, or just the S&P, is a stock market index that measures the stock performance of 500 large companies listed on stock exchanges in the United States. It is one of the most commonly followed equity indices, and many consider it to be one of the best representations of the U.S. stock market.
wikipedia


Slippage

Forex slippage occurs when a market order is executed or a stop loss closes the position at a different rate than set in the order. Slippage is more likely to occur in the forex market when volatility is high, perhaps due to news events, or during times when the currency pair is trading outside peak market hours.


Technical analysis

Technical traders look at charts and analyze past price movements to predict future price movements. As you know, history tends to repeat itself. The same thing happens with economic cycles and price movements.

Just like you know a child is about to cry as soon as he raises his upper lip, technical patterns are used to predict price movements before they occur.

Technical analysts have identified and established many patterns, which help us to predict how prices would move.

There are many ways to analyze the past price movements to predict the future prices, such as:
1-Resistance and Support line

Click here to watch the video about Resistance and Support line

2-MACD (Moving Average Convergence Divergence)
3-SMA (Simple Moving Average)
4-RSI (The Reletive Strength Index)
5-Slow Stochastic
Click here to watch the video about MACD, SMA, RSI and Slow Stochastic