Recent content by Fat Finger

Pivot points are specific price levels that can help traders predict the future direction of the market. Those price levels (or pivot points) are usually calculated based on the price action from the previous day. A pivot point is simply the average of the highest, lowest, and closing price of...

In forex trading, going long on a certain currency pair means buying that pair. For example, if you say you are going long on USDJPY, this means you are buying the USDJPY (or buying the USD against the Japanese Yen). Going long means the same as being in a bullish position. Both mean that you...

A forex broker is a company that offers people who want to trade currencies and other assets the chance to do so through their services. Forex brokers offer financial services to traders and thus they act as a portal for traders to enter and trade in the forex markets. Forex brokers enable...

Forex trading signals are trading recommendations from other traders. Expert analysts and seasoned traders, and sometimes novice traders, may give other traders recommendations to trade which currency pairs in which direction. The recommendations come typically with a stop loss and target...

In forex, a pip is a measure of price movement. Thus, if one exchange rate moves 100 pips and another 300 pips in one day, the second exchange rate will have displayed a bigger movement. The word pip is an abbreviation for percentage in point. A pip is usually equal to 0.0001 in exchange...

FX stands for foreign exchange. It refers to the decentralized foreign exchange markets all around the world. Individuals and organizations can participate in the foreign exchange markets by buying or selling one currency against one another. Therefore, currencies in the FX market exist in...

A lot in forex is the standard unit that traders use to measure the size of your trade. A standard lot is, in simple terms, 100,000 units of the base currency, which is the currency to the left in any pair. For example, 1 standard lot of USDJPY (here the USD is the base currency) equals 100,000...

A trading platform is a computer, a mobile, or a web application, which you can use to buy and sell financial assets. Almost all trading platforms are supplied with charting tools and all common technical indicators that you can add to the charts. Moreover, most common trading platforms are...

A retracement is when a currency pair reverses its direction and moves in the opposite direction of a previous trend. Forex pairs usually move in trends or sideways. That is, sometimes, buyers or sellers prevail, and the market is predominantly one-sided and moves in one direction. In such a...

When the market makes a bullish move, this means it is moving upwards, and when it makes a bearish move, this means it is moving downwards. Bulls are usually people who have bought a certain currency pair or financial instrument (or those who expect it to go up), and bears are those who sold the...

CFD stands for Contracts for Differences. When you buy or sell a CFD, such as a CFD on gold, for example, you are not buying or selling the physical gold itself. Instead, you are trading a contract that enables you to make or lose money depending on how the price of actual gold moves. To...

Forex reserves, or foreign exchange reserves, are the holdings of a specific central bank in foreign currencies. Central banks use their foreign currency reserves in times of crisis, such as when the national currency is exposed to losing a lot of its value due to hyperinflation. Countries that...

You receive a margin call in forex when your available capital drops below margin requirements. This usually occurs when the market has moved against your open positions and depleted your deposited capital. When you receive a margin call, the broker closes your open positions to prevent your...

Deviation in forex often refers to the deviation from the expected value when an economic report or data point is released. For example, if economists expect the consumer price index (CPI) reading for a certain country to be 2.1% and then the actual figure released turns out to be 1.8%, the...