MerexMarkets has always taken the time to explain to you different trading facts, and trading related topics, because at MerexMarket we want MerexMarkets clients and MerexMarkets blog viewers to have the power of knowledge even when MerexMarkets is fully responsible for the accounts.

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While reading our daily articles, News and quotes you come across many repeated words which are central to the Forex word. Today we explain those basic words which you may not be familiar with in a mini Glossary.

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To further understand Forex trading you need to know the basics of what makes a trade. Pips and Spreads are from the most basic and important parts of it.

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Before you start trading you should understand the two methods with which you can trade

 

Long Position

 

A Long position is the act of buying a currency, with the expectation of selling it at a higher price at a later stage.

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Forex trading also known as FX or Foreign exchange is the trading of currencies on the market. The basics of Forex trading is the buying and selling of currencies. Currencies are grouped in pairs, like the EUR/USD and one currency of the pair is sold in order to buy the other.

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