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TheGlobalFX | FAQ


WHAT IS THE DEFINITION OF A PIP?

Since our initiation in 2013, we have been right and faithful to our goals, vision, and mission. TheGlobalFx is a legitimate Forex Broker, i.e., devoted to make your Forex Trading experiences flawless, and professional. The founders associated with WTI believe in bringing Forex trading to the next level. They move forward to maintain the traders’ interests to the most significant extent possible.

WHAT IS THE DIFFERENCE BETWEEN BASE CURRENCY & QUOTED CURRENCY?

IF WE CONSIDER A CURRENCY PAIR EUR/USD, THE EUR IS BASE CURRENCY AND USD IS QUOTED CURRENCY. THE BASE CURRENCY IS THE CURRENCY WHICH IS SOLD TO PURCHASE THE QUOTED CURRENCY, IN ORDER TO GET PROFITED.

WHICH CURRENCIES ARE TRADED IN THE FOREX MARKET?

& MOST COMMON COMMODITY PAIRS ARE:
AUD/USD (AUSTRALIAN DOLLAR/DOLLAR)
USD/CAD (DOLLAR/CANADIAN DOLLAR)
NZD/USD (NEW ZEALAND DOLLAR/DOLLAR)
THE CURRENCY PAIRS DESCRIBED ABOVE CAN BE USED IN DIFFERENT COMBINATIONS.
FOR EXAMPLE, EUR CAN BE USED WITH JPY AND VICE VERSA.

WHAT IS ARBITRAGE?

ARBITRAGE IS A TERM, USED IN A PROCESS WHERE A SECURITY OR COMMODITY IS BOUGHT FROM ONE MARKET AND THEN IS SOLD TO ANOTHER MARKET AT THE SAME TIME BY EARNING PROFIT. THE CONCEPT IS THAT THE SECURITY IS SOLD IN HIGHER PRICE THAN THAT OF THE BUYING PRICE. ARBITRAGE IS A KIND OF BENEFIT EARNED WITHOUT CONCERNING ABOUT THE RISK FACTOR, THAT’S WHY USED THE MOST BY TRADERS/INVESTORS.

WHAT IS FOREX SPREAD?

IN EVERY POSSIBLE WAY OF FOREX TRADING, EVERYTHING IS PERFORMED VIA MEDIATORS WHO CHARGE A SPECIFIC AMOUNT FOR THEIR SERVICES. THIS CHARGING FEE OR DIFFERENCE BETWEEN THE BIDDING PRICES IS KNOWN AS “FOREX SPREAD”.