TheVisionFX FAQ
Frequently Asked Questions
WHAT IS THE DEFINITION OF A PIP?
PIP EXPANDS AS “PERCENTAGE IN POINT” AND IS EXPLAINED AS THE SMALLEST INCREMENT OF TRADE IN FOREX. WHILE TALKING ABOUT FOREX MARKET, WE KNOW THAT PRICES ARE BEING QUOTED TO THE FOURTH DECIMAL POINT. THE ALTERATION IN THAT FOURTH DECIMAL POINT IS KNOWN AS 1 PIP AND IS GENERALLY EQUAL TO 1/100TH OF 1%. JAPANESE YEN IS THE ONLY EXCEPTION AMONG ALL THE COUNTRIES.
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?
IT DEPENDS ON THE RETAILERS THAT WHICH CURRENCY DO THEY WANT TO USE BUT SOME OF THE VERY COMMON,
CURRENCY PAIRS USED WHILE TRADING ARE:
EUR/USD (EURO/DOLLAR)
USD/JPY (DOLLAR/JAPANESE YEN)
GBP/USD (BRITISH POUND/DOLLAR)
USD/CHF (DOLLAR/SWISS FRANC)
& 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”.
THE VISION FX HAS MADE THE FUNDING AND WITHDRAWAL OF YOUR TRADING ACCOUNTS A VERY CONVENIENT PROCESS. CONSTANT IMPROVEMENT OF OUR SERVICES IS ONE OF OUR DRIVING FORCES, AND WE ARE CONTINUOUSLY WORKING TO OFFER YOU EVEN MORE DEPOSIT AND WITHDRAWAL OPTIONS TO IMPROVE YOUR ONLINE TRADING EXPERIENCE.
Latest News
WTI could face some short-term consolidation – Commerzbank
Axel Rudolph, Senior FICC Technical Analyst at Commerzbank, suggested that prices of the barrel of the NYMEX Light Crude Oil could attempt some consolidation in the low-$67.00s in the near term.
Singapore: Solid prospect for the Industrial Production – UOB
“Singapore’s October industrial production expanded 16.9% y/y (+2.4% m/m sa), bucking the previous month’s contraction of 2.2% y/y (-1.9% m/m sa) … Excluding biomedical manufacturing, industrial production rose 9.7% y/y. Accounting for the latest data, Singapore’s industrial production grew 12.8% year-to-date.”
“The expansion was underpinned by a broad uptick in all key sectors.”
USD/CAD retreats from two-month high amid weaker USD, Canadian GDP in focust
A fresh leg down in oil prices undermined the loonie and pushed USD/CAD to a two-month high.
A steep decline in the US bond yields weighed on the USD and kept a lid on any meaningful gains.
Investors now look forward to Canadian GDP, US data and Powell’s testimony for some impetus.