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Currency Trading UkLast update: Tuesday 22nd of May 2012
5) How Secretive is a Country: An example of a trade might be the following. A trade of EUR/USD bid/ask currency rates at your bank may be 1.1015/1.2015, representing a spread of 1000 pips (also called points, one pip = 0.0001.) The smaller the spread the better for the investor. The reason for this is that the bid price, which represents how much must be paid by the taxpayer. You simply can not have a growing economy during war time. So war lowers the value of the countries currency. The factors that follow may have a positive or negative affect on the agricultural industry, energy consumption, and local economies. These also can determine the demand for a currency. Whether or not the perception is accurate or not is not as important as what the perception itself is. Perception is what determines if a currency purchaser decides to buy or sell a currency. There are many ways the use of margins can work against a currency investor. In fact, the number one reason novice investors fail to succeed in the currency
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