FOREX TRADING PURPOSES
The goal of investors in Forex trading is the profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example today, the exchange rate of EUR / USD is 1.0857. This number is also referred to as the Forex or just "rate" for short. If the investor had purchased 1,000 € at that time, he will pay 1085.70 dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR / USD ratio) increased with respect to the U.S. dollar. Investors can now sell € 1000 to receive 1208.30 dollars.
In the trade we are able to benefit / profit if the market goes up or is down. Its way is by analyzing a currency pair which will go up or down, and take the difference in profits.
If you believe the currency will be stronger (up) soon do buy position, then wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (down) to do a sell position, wait for prices to fall, do closed (buy) when the currency below the price you did.
In order to more clearly see the illustration below:
1. Adam entered in positions BUY EUR / USD at 1.3000, after a certain time
Adam SELL (CLOSE) at 1.3064 then Adam gain 64 pips / points (the smallest unit in forex)
If Adam SELL (CLOSE) in 1250 then Adam loss 50 pips
2. Erik entered in positions SELL GBP / USD in 1500, after a certain time
Erik BUY (CLOSE) in 1400 then Erik gain 100 pips / points (the smallest unit in forex)
If Erik BUY (CLOSE) in 1650 then Erik loses 150 pips
From the example above shows that you can benefit in two directions. Just how the placement of your initial position.
Note, if you look in the application metatrader (forex application) then:
* Prices used when OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).
* Prices used when OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).
HOW TO TRADING?
Forex trading is typically done through brokers or market makers. As a forex trader you can choose the currency pair that you want to buy / sell or traded.
With the development of Internet technology, reservations and requests the transaction can be done with just a few clicks of the computer, and the broker becomes your business partner. When you close a trade, brokers close a position in the Interbank Market and credit your account with a loss or gain. This could all happen within a few seconds.
TRADING RISK
Is it true that forex is scary? Trading in this market is very risky and should not be attempted by novices without the help of a seasoned trader. If you plan to enter the forex market, it is recommended that you should first learn about the forex market and how it works. In the forex market, you can easily make a profit and you can easily lose money anyway.
Forex trading can not be predicted accurately, it can make you lose large amounts of money. Taking classes that offer forex trading course is recommended so that you can understand more about this market and learn how you can minimize losses and maximize profits.
Or if not, you can study seriously at sites on the Internet that discuss forex trading.
The goal of investors in Forex trading is the profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example today, the exchange rate of EUR / USD is 1.0857. This number is also referred to as the Forex or just "rate" for short. If the investor had purchased 1,000 € at that time, he will pay 1085.70 dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR / USD ratio) increased with respect to the U.S. dollar. Investors can now sell € 1000 to receive 1208.30 dollars.
In the trade we are able to benefit / profit if the market goes up or is down. Its way is by analyzing a currency pair which will go up or down, and take the difference in profits.
If you believe the currency will be stronger (up) soon do buy position, then wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (down) to do a sell position, wait for prices to fall, do closed (buy) when the currency below the price you did.
In order to more clearly see the illustration below:
1. Adam entered in positions BUY EUR / USD at 1.3000, after a certain time
Adam SELL (CLOSE) at 1.3064 then Adam gain 64 pips / points (the smallest unit in forex)
If Adam SELL (CLOSE) in 1250 then Adam loss 50 pips
2. Erik entered in positions SELL GBP / USD in 1500, after a certain time
Erik BUY (CLOSE) in 1400 then Erik gain 100 pips / points (the smallest unit in forex)
If Erik BUY (CLOSE) in 1650 then Erik loses 150 pips
From the example above shows that you can benefit in two directions. Just how the placement of your initial position.
Note, if you look in the application metatrader (forex application) then:
* Prices used when OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).
* Prices used when OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).
HOW TO TRADING?
Forex trading is typically done through brokers or market makers. As a forex trader you can choose the currency pair that you want to buy / sell or traded.
With the development of Internet technology, reservations and requests the transaction can be done with just a few clicks of the computer, and the broker becomes your business partner. When you close a trade, brokers close a position in the Interbank Market and credit your account with a loss or gain. This could all happen within a few seconds.
TRADING RISK
Is it true that forex is scary? Trading in this market is very risky and should not be attempted by novices without the help of a seasoned trader. If you plan to enter the forex market, it is recommended that you should first learn about the forex market and how it works. In the forex market, you can easily make a profit and you can easily lose money anyway.
Forex trading can not be predicted accurately, it can make you lose large amounts of money. Taking classes that offer forex trading course is recommended so that you can understand more about this market and learn how you can minimize losses and maximize profits.
Or if not, you can study seriously at sites on the Internet that discuss forex trading.
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