Couple words about Forex

Updated: Jun 9

In terms of the core business, Forex market is similar to the well-known commodity or stock exchanges. Buyer and seller, as well as currency supply and demand, occur. Trading takes place via computer networks operating around the world. Placing orders is possible through transaction platforms made available by brokers (in most cases for free), which allows trading to individual investors.

The Forex market due to its specificity is a very attractive market for investors, the main distinguishing elements are:


Trading on the Forex market takes place 24 hours a day from Monday to Friday, which allows you to create a strategy at a selected time, e.g. transactions are carried out only during the European session.

Financial leverage

This powerful tool for trading on the stock market allows you to invest many times more than your capital on the account. With a leverage of 1: 100, you can open positions 100 times higher, e.g. with a deposit of USD 1,000, the maximum transaction value is 100,000. Please note that leverage affects profit and loss.


Market participants are central and commercial banks, international corporations, individual investors, investment funds, brokers and governments.

With such a varied type and number of suppliers, liquidity is huge, which means that concluding buy and sell transactions with immediate and pending orders is not a problem



You trade so-called Lots that reflect the volume of your transaction. There are four lot sizes:

• standard 100,000 (one pip is worth USD 10),

• mini 10,000 (one pip is worth 1 USD)

• micro 1000 (one pip is worth USD 0.1)

• nano 100 one pip is worth 0.01 USD)

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Risk Disclaimer

Trading spot currencies involves substantial risk and there is always the potential for loss. Your trading results may vary. Because the risk factor is high in the foreign exchange market trading, only genuine "risk" funds should be used in such trading. If you do not have the extra capital that you can afford to lose, you should not trade in the foreign exchange market. Forex Brokers and ZuluTrade are compensated for their services through the spread between the bid/ask prices or there may be a cost to initiate a trade through the bid/ask spread. Profit-sharing accounts are subject to a monthly performance fee per selected trading system.

Forex trading involves a real risk of loss. No "safe" trading system has ever been devised, and no one can guarantee profits or freedom from loss. Past performance is not indicative of future results.

All information posted on the site and subpages is the author's subjective view, is educational and does not constitute investment advice, recommendations or suggestions of the strategy. Investments on the currency exchange using financial leverage are associated with the risk of losing some or all of your capital, even with little price movement. When making investment decisions, be guided by your own judgment.