I Am Ready to Start Trading

You’ve read our Forex Education and perhaps also taken our test to determine whether you are ready to start trading.

To help you make sure that you really are ready to open an account, we’ve created this checklist for you, so that you can see if there’s anything you should know but have missed.

  • I know what the Spot Market is
  • I know what Futures, Forwards and Options are and the differences between them
  • I know what Contracts for Difference (CFDs) are
  • I know what the Major Currencies are
  • I know what Major Currency Pairs are
  • I know what Cross-Currency Pairs are
  • I know what Exotic Currency Pairs are
  • I know what the Base Currency in a currency pair is
  • I know what the Quote Currency or Term Currency in a currency pair is
  • I know what it means to Open or Close a Position
  • I know what Going Long means and when I should go long
  • I know what Going Short means and when I should go short
  • I know what the Bid or Sell price is
  • I know what the Ask or Offer price is
  • I know what the Spread is
  • I know the differences between a Line Chart, a Bar Chart and a Candlestick Chart
  • I know how to read a Bar Chart
  • I know how to read a Candlestick
  • I know what a Pip is and why it is important
  • I know how to calculate Pip Value
  • I know what Ticks are and the difference between a pip and a tick
  • I know what Lots are, and the differences between a Standard Lot, a Mini Lot, and a Micro Lot
  • I know what Volume means
  • I know what Leverage is and why it is useful as much as it is dangerous
  • I know what Margin is
  • I know how to calculate Required Margin
  • I know what Free Margin is
  • I know what Margin Level is
  • I know what Margin Call is
  • I know what Equity is
  • I know what the differences are between a Dealing Desk Broker/Market Maker, a No Dealing Desk Broker, an STP Broker and an STP + ECN Broker
  • I know why it is important for brokers to be Regulated
  • I know why Execution is important
  • I know what Bucket Shops and Boiler Rooms are
  • I have at least three months of experience with Demo-trading
Did you know?

The GBP/USD pair is widely referred to as “cable”. The term dates back to the 19th century, during which the exchange rate between the U.S. dollar and the British Pound was transmitted across the Atlantic via a huge cable that ran across the ocean floor and connected the two countries.

Word of the day
"Rectangle" - A chart formation that indicates trend continuation.
Pro Tip

Pips are important because they determine your profits or losses.

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