by Darrell Martin
Considering the Forex markets? Perhaps your account size is small, maybe even smaller than small. There are choices no matter what your account size. Some may consider trading Micro, Mini or Standard Forex. You can also trade the Forex markets on Nadex. Here is some important information to consider when trading Forex.
Currency Conversion USD Quote Currencies
When buying or selling Forex, you are trading the “base” forex currency pair. Left side is the base currency and right side is the quote currency. For example, when you look at EUR/USD, EUR is the base and USD is the quote. If EUR/USD is trading at 1.08, it means that for every one euro (base currency), you would get 1.08 USD (quote currency).
USD Base Currencies
What happens when you look at a USD based currency such as USD/JPY? It is currently quoting at about 113.85. This means that for every one USD (base currency), you would get 113.85 JPY (quote currency).
There is some math that goes into figuring out the worth of a pip and the margin when trading micro, mini and standard lots of Forex. All of this gets more confusing or intriguing, (depending on your point of view) when dealing with Non-USD currencies. However, there is an easier way to trade.
Trading Forex on Nadex
Trading Forex pairs on Nadex is easy because each pip is worth $1.00, no matter what the base or quote currency is. The smallest size is one, so the smallest pip’s value is $1.00. Nadex offers both Forex binary options and spreads. Nadex is open 23 hours a day from Sunday evening through Friday evening with numerous strikes and contracts available.
Markets Offered
The following are the popular forex pairs offered by Nadex, which can be traded with binary options and spreads:
When trading forex binary options and spreads with Nadex, the maximum possible loss is set before you enter the trade. You can’t lose more if a trade goes against you. There is never a margin call. All Nadex Forex contracts are based on the value of major spot forex rates.
When trading Forex, the greatest markets in the world are open to you to trade. The foreign exchange markets are the biggest markets in the world!