Session Time Forex Trading

What makes Forex attractive as it is not for 24 hours . So this condition allows traders around the world conduct transactions throughout the day from various countries . Whether it's part-time traders as well as the full -time at the same look for opportunities in the forex . However, in the forex market circumstances will not always move in a bullish or bearish trend with the same volatility . There are periods of time when market volatility is relatively high and the period of time when the market barely moved . In FX markets , the volatility of each currency pairs are not the same , it depends on the number of transactions in the pairs . This article discusses the major world trading hours session that may be useful to draw up a strategy in the trading plan .

In general, the forex market is divided into 3 main sessions each having different levels of volatility and take effect on a particular currency is trading sessions Asia, Europe , and America . Usually the Asian trading session , also known as the Tokyo trading session ( more popularly known as the Asian session ) , Europe with London and U.S. trading sessions with the New York trading session . 3 to represent the town center trade area of each continent .

Many traders wait for the best opportunity in the market when market conditions are most active when the third session of the meet ( overlap ) , in which banks , financial institutions and individual retail traders make transactions on- line simultaneously . At the moment it is usually quite high volatility and price jumps often occur when the session changed . Generally traders consider the overlap period to 3 sessions above is the best time to obtain a good trading opportunity . The resulting volatility could reach 50-80 pips . The following charts forex trading hours session in the main world markets ( pm : Time GMT +7 hours ) :

Asian Session ( Tokyo )
Tokyo session that became representative of the Asian markets were the first to react at the beginning of the week when the liquidity in the forex market to return to normal . Trading activity began in the Tokyo market was active at around midnight to 7 am All times are GMT . Besides Japan, the participants were active in the period of the Asian trading session are New Zealand , Australia , China ( including Hong Kong ) and Russia . In general volatility in the Asian session low and actively traded currency is JPY , USD , EUR , AUD and NZD . Asian session started between 23:00 GMT to 10:00 GMT , but are most active between the hours of 01:00 to 07:00 GMT .

European Session ( London )
European session is represented by the London Stock Exchange . 2 hours before Asian markets closed , the European market was active and frequent price jumps or even a change of direction of the trend as a result of the sentiment of market participants is based on the European banking and financial institutions . Especially large market participants with capital in the London market will give employees a major influence on the American market in the next session . Market volatility in the European session is quite high considering forex trading volume in London is the largest in the world . The main currencies are actively traded are EUR , USD , GBP , and CHF . In addition to the EUR / USD and GBP / USD currency pair is quite actively traded cross is EUR / JPY , EUR / GBP , EUR / CHF and GBP / JPY . European session begins when the market Frankfurt ( Germany ) and Paris open at 0700 GMT , but the official start at 08:00 GMT until 18:00 GMT with the most active period between 08:30 to 15:30 GMT .

Session States ( New York )
Session of the American continent is represented by the New York market . When European traders finish of the lunch break , the New York market was active . Volatility in this session is the highest and often also a change of trend or price jump . In this session, all of the major pairs including CAD and cross- actively traded currencies . New York session starts at 13:00 GMT until 23:00 GMT ( most active until 20:00 GMT ) . It should be underlined , important fundamental data releases related to the USD and has a high impact status often occurs in the period of time this session .

Once you understand the forex market session table based on trade timing diagram above , the best time to trade when there is overlapping in three sessions serve targeted , ie between the hours of 08:00 GMT to 18:00 GMT . At the moment it is also important fundamental news from Europe and America usually be released and instantly deliver significant market movements . For the day trader or short term trader who expects high volatility would be more profitable if it enters the market at this time period .

By: Unknown On 10:19 PM

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What is a Pip?

"Pip" stands for "percentage points" which scale is used to assess changes in the price of a currency pairs in the forex market. A percentage point or pip equivalent to one hundredth of a percent (0.0001) of a unit of currency.

All major currencies, except the Japanese yen, the currency has a unit that is equal to 1.0000. This is because their values ​​are relatively similar to each other. For example, at the time of writing 1 Euro is worth 1.4274 U.S. dollar, and the pound is worth 1.5482 Canadian dollars.

So, if the GBP / USD rose from 1.5482 to 1.5488, you have to say that the price of the pair has climbed eight pips (0.0008). If EUR / USD is down 10 pips from 1.4274, then it would be worth 1.4264.

Japanese Yen currency is unique, although the low exchange rate, but countries including Japan country with a strong economy. Because the value of the Japanese Yen is very low when compared with other major currencies, ultimately measured in units of 100.00 instead of 1.0000. So, every time you see the currency pair involving Yen, will be disclosed to two decimal points instead of four decimal places.

Here is an example that is easy to understand, at the time of writing, the U.S. Dollar against the Japanese Yen is expressed like this: USD / JPY = 77.60. A pip the currency pair involving the yen is 0.01 rather than 0.0001. Because the fact that the yen is measured in units of 100 instead of 1, which basically means that moving the decimal point two places to the right. So if the USD / JPY moves up by 10 pips from 77.60, the pair will have a value of 77.70.

Similarly, a brief explanation of notion pips. And what-what are the background of the formation of a pip.

By: Unknown On 10:07 PM

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Making Profit In Forex

The foreign exchange market has several nicknames including Forex , FX and the Forex market . Despite having different terms , but overall this term is merely an abbreviation of the market participants . The name over the activities of buying and selling in the forex market is the foreign exchange . Forex we know it today , emerged in the seventies . At that time, the exchange rate was introduced and only the free market can determine the members of the exchange rate of a currency against other currencies is based on observations of supply and demand . Forex is the only market the most financially independent and not easily controlled by outsiders or third parties . Forex is a market of free competition .

With a daily turnover value of trillions of dollars or even triple the amount of capital and deposits throughout the American financial markets , making none of the parties able to control the forex . Tremendous turnover because buyers and sellers conduct foreign exchange business using the means of communication that is very varied .

The uniqueness of the different forex financial market , forex is not having a centralized office . Therefore , this market can be continuously operated for 24 hours a day , moving from one time zone to another time zone , and crossed to each of the largest financial center in the entire world every day . Based on current information value of foreign exchange transactions each day carrying up to trillions of dollars . From 1997 until the end of 2000 , daily forex trading volume surged from about 5 billion USD to 1.5 billion USD even more ( recent research shows that has touched the figure of 1.7 billion USD every day and beat all other trading markets both in size and volume ) . This condition is a proof that the forex market is the most potential market worldwide will continue to grow indefinitely .

Before the era of the Internet and the sophistication of electronic commerce booming, used only large companies and multi- national banks , as well as the rich people who become actors in the currency market or forex trading system through the company's bank . Requirement to open an account with the old system required a very large fund that reached $ 1 million . Thanks to advances in online technology today, investors have access to the Forex 24 hours a day and about 5 days a week just a few thousand dollars only.


Forex is a market that is always online 24 hours where currencies of different countries are traded through the forex broker . As a result of this transaction when a variety of foreign currencies traded in both local and global markets continuously and simultaneously , of course at the same time also the traders add and subtract the value of investments refers to the movement of the forex market . Forex conditions can change at any time in response to real events of a story that economics is also synonymous with the forex market vulnerable to risk . Forex conditions are never the same , always changing in seconds .

Forex exceeds the combined operational stock exchanges of New York , London , and Japan . Based on the size and scope , Forex many times larger than all of the existing market . Statistics show that the spot transaction ( purchase or sale of foreign currency time delivery / settlement made ​​within two working days ) and outright transactions ( buying and selling money market securitie

For those traders, forex is the best alternative option other than the stock exchange. If you jump in the stock exchange, you have to be more selective in choosing a stock instrument for reaching thousands of stock shares. In forex, trading is limited to only a few major currencies (the most popular is the Dollar, Yen, British Pound, Swiss Franc, and the Euro). But do not rule out the possibility of the brokers continue to add products, such as the currency of other countries. This is because business competition. Forex also provide greater leverage than stock trading, and the minimum investment is also much lower. Moreover, Forex trading hours are also more easily adapted (Forex run for 24 hours a day) and now you know the reason why so many stock traders have flocked to switch to currency trading.

s / SBPU on the basis of the remaining period of SBPU without obligation to buy back prior to the date of maturity) in Forex trading occurs in the inter - bank market . 51% of transactions are spot transactions Forex market , followed by 32 % currency exchange transactions . Outright Forex transactions amounting to 5 % of daily turnover , with options on Forex transactions " interbank " by 8 % . Therefore , inter - bank market accounts 96 % of it comes from the global foreign exchange market , with the remaining 4 % is divided among all the global stock exchanges .

By: Unknown On 9:59 PM

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Margin, Leverage and Margin Call (Part 2)

In another article already discussed about Pip, Lot and Calculation of Profit / Loss. Now the article titled "Margin, Leverage and Margin Call (Part 2)" will discuss more about calculating Margin, Leverage and also the definition and calculation of Margin Call.

Margin and Leverage
With the margin and leverage then we have the possibility to save 10,000 euros as capital to be able to buy the 10,000 Euros, but enough to guarantee a capital of about 100 Euro only then are able to transact some 10,000 euros.

Example: For example, we will do the transaction in the currency pair USD / JPY as much as $ 10,000. In today's modern forex market, we no longer have the capital required as much as $ 10,000 to participate in the nominal amount of the forex transactions, but enough to ensure a capital of $ 100 only (with leverage 1:100).

Of course besides the guarantor of capital , we still have to provide a margin as available margin to hold our position when it is floating negative , so as not to force the cut loss by the system if the transaction turns out that we do experience a negative floating quite steep . So after open trade in execution ( close) then the margins will be returned to your account again as a whole .

The amount of leverage offered by each broker is varied between 1:100 to 1:1,000 , with the leverage it serves as leverage , which can increase the power of your transaction to about 100x as much of your capital capabilities ( for leverage 1:100 ) . So with a margin of $ 200 then you can trade a maximum in the amount of $ 200 x 100 = $ 20,000 .

Here's how to calculate the margin with leverage Example :
• 1:100 leverage means ( 1/100 ) x 100 % = 1 %
• the 1:200 leverage means ( 1/200 ) x 100 % = 0.5 %
• 1:500 the mean ( 1/500 ) x 100 % = 0.2 %

Margin Call
Margin call is a state where open positions in negative floating is no longer possible because the conditions for continued dwindling cash equity ( available margin consumables ) , so that it can no longer hold losses caused by transactions that we do so that the position will be closed automatically by the system . When we experience Margin Call , that means we run out of capital in the account and margin used in writing only . Margin Call can be regarded as the biggest failure for traders , therefore, to avoid the occurrence of Margin Call, we need to know our margin resilience before to open position and supported robust analysis .

Example calculation of a margin call
To find out how to calculate a margin call, the following illustration: Suppose our initial capital is $ 1,000 and has been doing open sell 0.2 lot on the GBP / USD with a leverage of 1:500, note the explanation above, then used margin is $ 76 (0.2 x 100,000 x 0.2 % x 1.9010 = $ 76). And the remaining capital balance of your (cash equity) after the cut by a margin collateral then, would be $ 1,000 - $ 76 = $ 924 Because we use 0.2 lot then, the value of movement per pip him to $ 2 and the remaining capital of $ 924 will be able to withstand the loss of up to $ 924 / $ 2 = 462 points. So if the loss exceeds prisoners (minus 462 points), will pass Margin Call.

Thus this article, hopefully you already know enough about the calculation of the margin, leverage and margin call. Thanks to Lee Wison who have given examples above calculation.

By: Unknown On 10:52 AM

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Margin, Leverage and Margin Call (Part 1)

In another article already discussed about Pip, Lot and Calculation of Profit / Loss. Now the article titled "Margin, Leverage and Margin Call (Part 1)" will discuss more about calculating Margin, Leverage and also the definition and calculation of Margin Call.

Margin Calculation

First, to understand the margin, we must understand the calculation Lot. As already discussed that generally 1 lot = quantity contract size $ 100,000 and 0.1 lot size quantity contract = $ 10,000. Or you can ask questions directly to the broker in question because the type of account also affect the amount of the contract value for the size of 1 lot.

For the currency pair prefix / USD for example is based USD / JPY , USD / CHF , and so forth , the margin calculation is as follows :
Margin = Total Lot x 100,000 x % margin ( for wearing unit Lot )
or Margin = Quantity Contract Size x % margin ( for units using Quantity )

Example 1 : We did get open in the USD / JPY 1 lot with 1:100 leverage , margin calculation is as follows : Margin = 1 x 100,000 x 1 % = $ 1,000
Example 2 : We conducted an open sell on the USD / CHF as much as 0.3 lots with the leverage 1:200 , margin calculation is : Margin = 0.3 x 100,000 x 0.5 % = $ 150

As for the currency pair quote / suffix is USD for example EUR / USD , GBP / USD , and so forth , then , the margin calculation is : Margin = Total Lot x 100,000 x % margin x price quote ( for wearing unit Lot ) or margin = Quantity Contract Size x % margin x price quote ( for a unit using Quantity )

Example 1 : We do order buy ( Ask) in currency EUR / USD 1 lot with 1:100 leverage and exchange rates Bid / Ask when it is 1.2998/1.3000 then ,
margin calculation is: Margin = 1 x 100,000 x 1 % x 1.3000 = $ 1,300
Example 2 : We do a sell order ( bid ) in the GBP / USD as much as 0.2 lots with the leverage 1:500 and exchange rates Bid / Ask when it is 1.9010/1.9014 then ,
margin calculation is: Margin = 0.2 x 100,000 x 0.2 % x 1.9010 = $ 76

This article is continued in the subsequent discussion .

By: Unknown On 10:10 AM

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Shorten Time Learning Forex

Discussing about learning forex , I was reminded about 3 years ago , I know the first time forex and decided to pursue forex . I still remember very well how I felt when you first open trading platform. At that time I was impressed with forex , forex for me it was something cool . The next impression was : confused . What should I do ? How to do " something " ? I then try the buttons to " buy / sell " and then confusion itself , which appears in the position why then is a "long / short " . Then they change the position of the green , red , green again , and without thinking I close the order. I really like a kid with a new toy .

The next stage is the willingness / strong desire to learn . For me , it is something new challenge . So , I am a 30 -day continuous trading of welcome bonuses to understand what and how forex trading . I'm trading blind , I do not know what it is analysis , what the indicator . So when I was 3 pips profit , already closed position , while when the loss is 20 pips , I expect the market return , it did not. At that moment I was confused , why ? I think trading would be easy , I think trading is just waiting for the green pips then we close . It was not that easy .

On the condition that I had dared to deposit $ 200 . And out within 3 days . After I broke in the market , I've learned , why I'm broke ? I started studying dozens of e -books , browsing the forex article , I asked the chat room . The result ? I still experience a margin call . But it is precisely the condition that increasingly makes me crazy with forex . I actually increasingly challenged , so how the hell can actually understand about forex trading ? And what steps should I take to trade properly .

because I learned a great intention , then I was lucky to meet with colleagues and more senior traders who are willing to share and teach me . I also then find forums where traders ordinary share and discuss , share experiences , and mutual encouragement . Apparently, with the guidance of a mentor and learning community that forum is much easier than learning itself through e -book or a website or even short courses . Because it has the same social environment with our passion , good friends or a mentor in the forum , in addition to functioning directing what we need to learn , also could give encouragement in the face of situations that are sometimes not as expected . Not enough knowledge , we would need a motivation and inspiration .

As it turns out I still have not been immune to Margin Call ( for the umpteenth time ) , I then share these experiences . Apparently they just commented : " Margin Call ? Ordinary , do not be too taken dizzy , just take the lesson behind the margin call and do not do the same mistake . " My friends in the forum also it gives the spirit and encouragement to continue to learn , especially for my friends who experienced loss and Margin Call . Of the many events that I experienced , the ups and downs in the market . I can finally take the conclusion that in fact , have a mentor and community will be easier for us to learn . In addition, by sharing we can share and encourage one another , so that the learning process becomes faster and fun . Conditions are 180 degrees different from when I taught myself . That is why I strongly recommend to my friends who want to learn to communicate to fellow forex traders . Do not forget to update your trading information . Many things need to be learned from forex to add insight .

Is a constraint then how to find a mentor / right community . indeed find the right mentor was quite difficult , because the requirements of a good mentor are : willing and able to guide , correct understanding about the things we want to learn . So , how do we get the right mentor ? Should be frequently visited and active in the forums . If you need to spend some time in chat rooms that discuss about forex . It would be better if you invest some of your money to pay trading program . Nothing to lose . You can also observe the existing posts , you can see a senior trader who can provide explanations that are easily understood . Ask something that deserves to be asked , show that we are serious about learning . Usually they are , the master will be happy to help and accept our own students . But keep in mind, too , do not always expect you to their success . You should first learn the basics about the world of forex , avoid questions such as the meaning or concept because it can be answered at the site of learning forex . In essence , we must always show that we also continue to learn and not just hope he is going to explain to us .

Also avoid asking about a signal , such as " GBP / USD buy or sell ? " If you want to get a signal , you should apply to the trader paid .

By: Unknown On 9:42 AM

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Know the Various Trading Platform

Perhaps as a large, new to forex trading will ask what the platform. When I first learn forex and after registering at a broker, I was confused when asked to download the trading platform. There are 2 types namely MetaTrader platform, and there is also a broker-made official its own. I understand if it's trading platform has a characteristic of each. And to this day, I prefer the MetaTrader trading platform.

Then I signed up on the various kinds of brokers, trading platforms like to know what they offer to clients, I also began to recognize a wide variety of trading platforms used by brokers, in my opinion each trading platform has advantages and disadvantages. In this article I will try to briefly discuss about the various kinds of trading platforms.

Here is an explanation of the types of trading platforms.

MetaTrader trading platform is the most widely used by many brokers . MetaTrader4 is the most popular version of MetaTrader 4 , but there are also some brokers offering MetaTrader 5 . As a trading platform the most widely used , MetaTrader does have many advantages , one is the ability to allow traders using MetaTrader Expert Advisor ( EA ) or custom indicator . Metatrader display was dynamic and easy to set up. MetaTrader is also available in a mobile package that allows traders to make transactions through smartphones . If you are able to use MetaTrader , you will have a lot of alternative brokers to trade , because most brokers use this trading platform .

This Streamster trading platform developed specifically by the broker is concerned , I demonstrated Marketiva , brokers are using the trading platform itself is the first broker that I know . That are the hallmark streamster , one of which is the default view be " clean " , available news and alerts that have been integrated . And chat rooms are available for direct contact with a support officer marketiva , as well as with other fellow traders .

But unlike Streamster MetaTrader , in steamster traders can not use EA or custom indicator . So , the only option to trade with streamster only for manual trading . streamster does not get installed EA designed and custom indicator that sometimes a complaint for some traders . But in my opinion , even with practice trading manually , traders will be more confident in doing the analysis , and not only accustomed to relying on EA . However, the magnitude of the demands of the clients will be multi-functional platform , for traders who are used to using EA or custom indicator , available also - Streamster MetaTrader bridge that makes it possible for traders to " send command " from MetaTrader to Streamster . It just takes more effort to do so , and need patience itself. As with MetaTrader , Streamster lately also available in a mobile version that allows traders to trade from a smartphone .

Web -based trading platform . In addition to MetaTrader and Streamster that can be used for forex transactions . Now there is also a web -based trading platform . That is for trading , clients of the broker , simply access the web portal and can directly trade on the web without downloading the trading platform itself . This web -based trading platform is very popular in binary option trading .

By: Unknown On 11:36 PM

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Understanding Component Price Movement

What are the important things that need to be understood by a trader ?
 

There are some traders who principled or pips results-oriented , according to how important they are in our understanding of the world of forex , trading system or method used , can generate profits in its core markets. I personally respond to these thoughts with positive reactions , but we should have an understanding and trading system that can be accounted for . It's a little tricky , if we consider forex trading as a business , then every decision we make should be based on rational and scientific considerations are strong .

back to the fundamental understanding of the problem , the main thing that is most crucial for a trader is to understand the price movements . Of course, from that understanding , then analyzed for the conclusions drawn what position will be taken , how and how much TP SL , and how many lots are set . For traders fundamentalists , they understand the price movements by monitoring the news , because every news has different levels of impact and predict depending on market reaction to the news . As for technicalist traders , understanding price movements by referring to the data mathematically . And the fundamentalists , everything that happens in the market based on past events and that history always repeats itself .

For a technicalist , when understanding the price movement , know the components of price movements as follows :

• Trend - a tendency to move in one direction if it is bearish / bullish
• Volatility - periodic fluctuations
• Momentum - the rate of acceleration and deceleration
• Cycle - a tendency to move in cyclical patterns of certain repetitive tendencies , in the short term is called sideways
• Market Strength - the number of transactions to support these movements
• Support and Resistance - the tendency to rise or fall to a certain level and then vice versa , repeatedly

Most do not understand the above components are able to be added value in taking the right decision in trading. Regardless of where or how to obtain the data we need to process the data . That said, we are in the era where all sorts of information from many sources can be processed and presented in real - time so that we can trade with ease plus . We can take advantage of the trading platform provided free of charge by the broker to process the data obtained . How to use the indicator to visualize what you want, which basically provides information about the components of price movements above . In addition , today many indicators with different visual appearance and with a variety of characteristics that you can use without the need to do the programming . Even if they can , you can create your own custom indicators .

The most important thing is how you understand what is indicated by the indicator . And apply them properly in accordance with your trading system . There are many indicators that you can use for the component market . For example, to read the trends , you can use the Parabolic SAR , Moving Average or family .

For volatility and momentum , you can use MACD , RSI and the like .
For cycle - resistant and support you can use Fibonacci or pivot .
For the strength of the market , you can monitor directly in your candlestick or bar charts show the volume .

So , your job is simply to make the combination of the indicators , and then take a decision based on your understanding of the data and the indicators . The more you are trained , the more accurate your analysis . By using a strong base in decision making , regardless of the results we obtained , we can capture the benefits . Loss or profit , just the impact of a forex transaction . Although we turned out loss , from there we can take a lesson so that does not happen again making the same mistakes . That's the world of trading , our analysis sometimes bolted . Remember , any trader world will never be immune to loss . So just relax .

By: Unknown On 11:24 PM

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Effective Ways to Learn Forex

If you want to learn trading , but confused where to start , what materials you need to learn first , and forex details . You do not immediately give up . Indeed I found many novice traders have given up the stage when only understand the basics of forex trading . All because a lot of beginners forex wrong in finding a good forex learning media . One interpretation of the forex can make a beginner forex is something that is considered risky .

So how do I learn the most effective trading ?

Stage 1 : Learning the basics of the theory of the webAccording to my own experience and the experiences shared from some other traders , the most effective way to master forex actually turned out to learn on their own . Own learning point is that you can learn with the help of a web that has educational materials or programs forex free / paid . Average is a system of learning material with easy stages and with mild language that has been simplified so that more interesting to continue to read .

Learn forex with self-taught , meaning you have to committed yourself . Diligent and do not easily discouraged . Continue to follow every stage in the material until you are worthy of success . It would be better if you have a friend who is more senior trader for the term is used as a guide or mentor . Do not misunderstand , mentor here is not the place for everything you lean and cheating . But more to the point mentor to ask and consult about issues that you find the time to learn forex or when practice in metatrader .

Stage 2 : Learning the practice of trading ( virtual account )Once you successfully learn the basics of forex , you continue to learn the theory of forex especially technical knowledge . For example, how to use the trading platform that you will use to trade forex . I used to learn from the web , opening the trading platform with a demo account of course , in order to directly apply the theory I read . I use a virtual account first in order to avoid a fatal loss .

Phase 3 : Develop a trading system ( which is considered the most suitable )You can test a wide variety of trial and error indicators and a variety of systems that may be collected when you learn forex , eventually you will find a trading system that you feel is most appropriate . Are supposed to be , which is able to realize your financial targets . Whether it's psychological condition , financial condition or state of the background of your activities , such as how much time you can take to make this trade and when you can trade without interfering with your routine activities . One thing you should know that a trading system is not always suitable for all traders . So you should not slavishly imitate other people's trading system , although the system has been shown to work well . Adjustments you need to do so the system is fit for you .

Step 4 : Perform trading with a live accountOnce you pass the test the trading system competence and generate consistent profit ratios , please try trading with a live account . Principles of deposit , make sure you use this benchmark to make a deposit base that is deposited only nominal amounts that you are prepared to lose . Do not make a deposit with the funds that you have the allocation for other needs . You do not need to be pessimistic because as many brokers who deposit a minimum of only $ 5 . All you have to control only the quantity (lot ) in each position . This is where you will be tested in the margin management .

Step 5 : Continue to learnEven if you 've studied the theory of experts and successful forex to do virtual trading , you will not be a guarantee of immediate success also in a live account . In fact , not a few friends and friends of traders who succeed in the virtual but fails when live trading . In any case the amount of time you trade to be influential in honing your trading skills , especially mental shape and positive psychology to be a reliable trader . Do not be disappointed if there is no correlation between the results of your demo and live trading .

It is advisable to join a community of traders on the site or subscribe to learn trading is up - to-date as Campus of FOREX . mental support and sharing of technical problems to help you and encourage you to continue to train yourself . By doing social with the trader , you will be expected to quickly rise again enthusiasm to learn and try again when live trading conditions fail .

By: Unknown On 11:13 PM

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Know Leverage In Forex

As a trader you should have an understanding of leverage in forex because it is important to know before you plunge into the world of trading . Moreover specifically for beginners in the world of forex . By understanding leverage , then you will surely know how the best way to manage your finances in your trading activities daily . Leverage can be defined as the use of active funds in which to use such a company must cover fixed costs or fixed load . While the Forex itself , leverage it can be interpreted as we borrow money while at the brokerage firm with a certain amount and to provide a number of guarantees called the " margin " . The amount of margin is determined by the amount of leverage the facilities we have, the greater the leverage offered eg 1:200 then the less assurance that we need to spend. More efficient and profitable .

Leverage No Effect on unit size of a Profit and Loss Meaning : there is no effect to the value of pips ( points ) . However, High Leverage means also contain a higher risk anyway .

Leverage the value will not affect the amount of pips . Leverage has no effect on the amount of profit or loss unit . Because leverage only affects the magnitude of the margin . So the leverage scheme we use the greater , then you can use the Lot which the more necessary because the value guarantee only slightly in the Lot . Because of the leverage effect only on the magnitude of margin only. However, please note if high leverage , meaning will carry a consequence of its own . Keep control the power of your lot that can exceed the normal strength of your capital .
 

Kinds of Leverage 

Here is the leverage that is often encountered in the forex:
1: 1 which means the bail money = 100% contract value (equal to 1:1 without leverage).
1: 50 which means bail = 2% of the contract value.
1: 100 which means bail = 1% of the contract value.
1: 200 which means bail = 12:50% of the contract value.
It is recommended not to use the leverage is too low as 1:1 or 1:50 because it would require substantial capital. Ideally is 1:100 and 1:200. Leverage the higher the risk is also higher if not used properly. Therefore, with high leverage, sometimes making traders forget to factor capital adequacy ratio and risk.

Description : Warranty = Margin Assurance ( margin ) will be returned to your account balance portfolio again in full after your order closed position or diliquid . Account Types Trading account types commonly found on forex :

• Micro Account ( Micro Lot ) : With units ranging from 0.01 lot , the minimum capital is recommended in these accounts is $ 250 .
• Mini Accounts ( Mini Lots ) : With units ranging from 0.1 lot , the recommended minimum capital in this account $ 250 .
• Regular Account ( Standard Account / lot) : The unit started 1 lot , the minimum capital is recommended for this account $ 5,000

Description : Forex broker is not all require the trader to make a deposit with a certain value when the client wants to be , but it was all taken from the global brokers who have been recommended by the master forex . So every Brokers Minimum Deposit certainly have differences . From the brief description of Leverage in Forex , you may be able to better understand and manage your finances when making a deposit .

By: Unknown On 10:31 PM

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