In your trading software, you might encounter terms like “Unrealized P/L” or “Floating P/L” with varying positive or negative figures. Here’s what they mean: 1. Unrealized P/L or Floating P/L: Example: Suppose you buy 10,000 units of EUR/USD at 1.15000. …
When trading forex, you might hear the terms “pip”, “pipette”. Here’s a simplified breakdown: The good news? Most forex brokers calculate this for you. But it’s helpful to understand the math behind it.
When doing this, you’re dealing with pairs of currencies. For example, you might trade euros for U.S. dollars, or British pounds for Japanese yen. Let’s imagine two currencies are in a tug-of-war game. The “exchange rate” is like the score …
Understanding Forex Forex, at its core, is the worldwide platform for currency trading. Profits arise when you predict the strengthening of one currency against another and are proven right. Remember the days before the global health crisis, when international travel …