Some Forex trading advisors will tell you that it is always best to follow the KISS approach (“keep it simple, stupid”). By this, they mean you would always buy “at the market” and sell “at the market.” That is called a market order, and to be sure, it is

Margin refers to the amount of your own money you have to deposit with the broker in order to begin trading. Technically, margin comes in two flavors — initial margin, or the amount you first place in your account to begin trading, and maintenance margin,

A lot is the minimum number of currency units in a single trade. The standard lot in most Forex futures is 100,000 units of foreign currency, like the euro, Swiss franc, Australian dollar, or Canadian dollar (£62,500 in the pound and ¥100,000 in the yen).

A pip is the smallest unit that can be traded in Forex. The word comes from the British word for a small seed in a fruit like an orange, although you will also see pip defined as “percentage in point” since a pip is equal to 1/100th of 1 percent.

Money is made in Forex trading by either the currency bought going up in price or the currency sold going down in price. In practice, it does not matter whether you are buying EUR/USD because you think upcoming data will favor the EUR or selling the USD a