Forex stands for Foreign Exchange, or the exchange of the value of different currencies, forex activity unwittingly or consciously, often carried out by all people in the world, if you travel abroad you must exchange your currency with the currency of your destination country. Or another example of a result of export-import activities, the needs of the market and banking institutions, must conduct the currency exchange!
If we trade by exploiting the difference between purchase price and the exchange price is fluctuating every minute,usually referred to by traders who typically perform these Forex Trading through trading house / brokers! Can an online Internet or via phone, or by manually though!
What is the difference Forex Market Forex Markets Traditional and Modern / Online?
For Traditional Forex Market level of money that is used is 1:1, or a means for trading worth $ 100 you need the money $ 100, or the means to perform a traditional market can be said to have substantial capital, generally done offline traditional trade in the FOREX market. Meanwhile, in trading Forex Market Modern use levels and margins, trade was using online media. What is the level and margin? Level here in modern FOREX market like the example is 1:100, or the means to trade $ 100 of capital should be employed only 1:100 its course, or $ 1, $ 1 it was also mentioned by a margin (or also known as a deposit for the purchase quantity $ 100 .)
How could $ 1 can buy $ 100?? well, because it really can be said brokers who spend the money $ 100 is for you, so you only need to spend money (deposit accounts) to bear the losses and gains of $ 100 transaction. So $ 1 is a guarantee of $ 100, and the rest account as the agency laen losses and gains from such transactions. Therefore this is the forex trading system more attractive to modern people than traditional
must be vigilant, because the levels or leverage could be a double-edged sword. Examples are:
Well if you play with $ 1 = $ 100, meaning equal to $ 1 is 0.1 lot, if your money is $ 10 that you play, every increase of 20pips means you'll get $ 20 extra, but you do not forget as well as any decline in 20pips you mean already experiencing losses minus $ 20, your capital ever since the previous $ 10, means the brokers will make a margin call because your money is not enough! Alias burn your money because the capital is up only because of the decrease was!
What currencies are the most demanding people in the trade?
Well, most people trading the major currencies of the world (G7 and advanced countries), that reason alone because the currency is relatively stable and its movement is not too sharp, and again the currency of this country who will mempengaruhin movement of world economy
* EUR / USD: Euro / US Dollar called the euro
* USD / JPY: U.S. Dollar / Japanese Yen is often called Dollar Yen;
* GBP / USD: British Pound / U.S. Dollar is often called Cable;
* USD / CHF: U.S. Dollar / Swiss Franc is often called Dollar Swiss, or Swissy;
* USD / CAD: U.S. Dollar / Canadian Dollar denganDollar called Canada, or C-Dollar;
* AUD / USD: Australian Dollar / U.S. Dollar Aussie Dollar called;
* EUR / GBP: Euro / British Pound called Euro Sterling;
* EUR / JPY: Euro / Japanese Yen is often called Euro Yen;
* EUR / CHF: Euro / Swiss Franc Euro Swiss called;
* GBP / CHF: British Pound / Swiss Francdisebut with Sterling Switzerland;
* GBP / JPY: British Pound / Japanese Yen Yen called denganSterling;
* CHF / JPY: Swiss Franc / Japanese Yen Yen called by Switzerland;
* NZD / USD: New Zealand Dollar / U.S. Dollar New Zealand Dollar called or kiwi;
What is the price of BID / OFFER?
Consider the example of currency Eur / USD follows: 1.1810/1.1813, 1.1810 and 1.1813 is the bid price is the price offer. Bid means the price at which brokers (wholesalers) want to buy our currency. Offer means the price at which brokers (wholesalers) want to sell the currency to us. So if you put buy position, then when the order is executed buy used is the offer price. Meanwhile, when put sell position, then when executed sell order that is used is the bid price
How do I get a profit in trading?
His way is by analyzing a currency pair which will naek or down, and take its difference from the trade.
If you believe the currency will from strengthen (increase) Immediately do buy position, then wait for prices to rise, do closed (sell) Pls the currency exceeds the purchase price you'd
If you believe the currency will weaken (go down) do sell position, wait for prices to fall, do closed (buy) when the currency below the price you'd
As the example is this:
Opening of Euro 1.1750 / 1.1753, you Analyze That the euro will of some a positions rose 1.1770/1.1767, then the open buy position Pls the price is (then you buy at the position of 1.1753), and Pls the position changed to 1.1770/1.1773 , do the closed position / sell currency these (at position 1.1770)
Consider the example above, the offer price and bid price, notice the difference in price and sell it buy, and Pls you use the offer price and Pls to use the bid price
Calculate How can We profit?
We suppose That the level of forex platform That We use is 1:100, then I calculate the profit margin is profit = x (difference Between a buy-sell price / 100)
for example the difference between purchase price and you sell when the transaction is 70 pips, and used margin (deposit) is $ 10 (for purchase of $ 1000) so profit = $ 10 x (70/100) = $ 7
What is market price, stop orders and limit price?
When you open a position of course you will find the option to buy / sell limit price or market price. Market Price is the buy / sell at a price at that time in the market. Stop orders are buy / sell when the market direction as you want, this permisalan price of USD / JPY at 108.72 and you feel it will move higher, you get put a stop order to buy at 108.82, if the price was not up to 108.82 then the order you will not be executed. While Price is the limit you set yourself when you want to buy / sell at what price level, or by word laen if the current rate you requested is not touched, then the price will not be executed and can be canceled at any time
What is stop loss and take profit? Stop loss is the lowest price limit or a loss you can bear Take profit is the highest price restrictions or benefits that may want to order if you are exposed to one of the constraints that the position will be closed automatically
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