What are the currency pairs you should trade? In this lesson, we will classify all pairs into three different groups. During the classification process, we will highlight the advantages and disadvantages of each group.
Also, the purpose of this lesson is to gain a fundamental understanding of the US economy. A critical part as a Forex trader is being prepared fundamentally. The US economy is still the largest developed economy in the world, and therefore the US-Dollar reflects this importance. Much of the world's trade is denominated in US-Dollar.
In this lesson, we will also gain an insight into how we can use the US-Dollar in our favor and use it as an additional "Zone Qualifier" to increase our probability of a trade.
Lesson 2: Margin and Leverage
Many traders start with too much money and leverage and quickly get caught in drawdowns. It is of utmost importance to understand the meaning of margin, the way it has to be calculated, and the role of leverage in the margin and how this affects your position size.
In this lesson, we will explore the concept of margin, leverage and position size. It is not only a crucial part of Forex trading; it can potentially make a massive difference to your trades. This lesson provides guidance on the essential ways of calculating your position size and achieving adequate trade preparation. We also include sample exercises to help you practice your skills.