A pip is a unit of measurement used to show changes in the rate of a pair. In the image below, a pip is the fourth decimal.
Spread is the difference between the buy price and the sell price quoted for an instrument. The buy price quoted will always be higher than the sell price quoted, and the underlying market price will generally be in the middle of the these two prices.
Spreads is an important tool of forex trading. It helps a trader to maximize his profit and earn a lot of money. So, trader should choose those broker who are giving low spreads. I am currently trading with TP Global FX. I choose them as my broker because they are giving me the lowest spreads which is 0.01 pips. They are also giving me high leverage up to 1:500. Their low spreads and high leverage help me to make profit easily.
Forex traders often want to use high leverage to make big profits, but if they are over-leveraged, they will suffer large losses due to abrupt market changes or a simple mistake. Traders really need to learn how to leverage risk works and how proactively managing it to be a good trader. I am a forex trader too. My broker Eurotrader offers me 1:500 leverage. But I only use 1:50 leverage.
Traders always want to work in the minimum spread and maximum leverage. If a trader works with high leverage he/she can earn profits easily. If a trader knows how leverage works then he/she can survive in the forex market. My broker Eurotrader is a very reliable broker. They provide minimum spread and maximum leverage. They always try to provide their best service. They never make disappointment to their client.
Trading requires a lot of knowledge. It is not possible to make a profit without trading knowledge. There must be a loss in trading and we have to learn from this loss. I practiced the demo for 6 months when I joined the trading as a new trader and during this demo practice, I did a lot of research on trading. I used the demo account of Forex4you at first to know the basics, Still, now I am trading under this broker.
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