Forex trading is the trading activities using instruments traded currency , trading itself involves many people working in the financial field . Suppose you buy Pounds ( GBP ) and Pounds vs dollar after rate rise , you sell your Pounds to Dollars buy it. In the end you have a lot of dollars from the previous .
The forex market have higher liquidity be compared to the stock market because more money is traded . Forex is spread between banks all over the world and this means that transactions continue to take place for 24 hours straight . Clearly different from the stock , forex trading is done with high leverage , reaching 100 % . That is to invest $ 1000 , equivalent to managing your fund of $ 100,000 , and increase potential returns. Some brokers also provide smaller accounts that forex mini , which required a deposit of $ 100 . With easy access to trade anyone can become a trader and earn online .
Forex has its own dictionary of terms regarding the naming and other transactions . Forex pairs in the instrument known term investment / trading from a combined 2 currencies . For example USDJPY symbol which stands for U.S. Dollars and Japanese Yen . For technical analysis there was no significant difference , you can implement a trading system in general . Index traders can be optimized by " symbol " Forex , which helps you find a profitable strategy .
Examples Forex Transactions
Let's say you currently have a trading account of $ 25,000 and 1 % of trading on margin . Quote for EUR / USD is 1.3225/28 and the example you put a position to buy 1 lot of 100,000 ( contract size) Euro at 1.3228 , with the hopes of euro will rise against the dollar .
At that time you place a stop loss order at 1.3178 representing a maximum loss which is 2 % of your account equity . If you find that the market moves against you , which is 50 pips below the price of the order and if the limit order was at 1.3378 is 150 pips above the price of the order .
Then you are risking a loss of 50 pips to gain 150 pips . This means that if you win you will get triple the value . So enough with 1 victories for profit . In other words , you only need to win one of three in order to remain a profit trading .
The forex market have higher liquidity be compared to the stock market because more money is traded . Forex is spread between banks all over the world and this means that transactions continue to take place for 24 hours straight . Clearly different from the stock , forex trading is done with high leverage , reaching 100 % . That is to invest $ 1000 , equivalent to managing your fund of $ 100,000 , and increase potential returns. Some brokers also provide smaller accounts that forex mini , which required a deposit of $ 100 . With easy access to trade anyone can become a trader and earn online .
Forex has its own dictionary of terms regarding the naming and other transactions . Forex pairs in the instrument known term investment / trading from a combined 2 currencies . For example USDJPY symbol which stands for U.S. Dollars and Japanese Yen . For technical analysis there was no significant difference , you can implement a trading system in general . Index traders can be optimized by " symbol " Forex , which helps you find a profitable strategy .
Examples Forex Transactions
Let's say you currently have a trading account of $ 25,000 and 1 % of trading on margin . Quote for EUR / USD is 1.3225/28 and the example you put a position to buy 1 lot of 100,000 ( contract size) Euro at 1.3228 , with the hopes of euro will rise against the dollar .
At that time you place a stop loss order at 1.3178 representing a maximum loss which is 2 % of your account equity . If you find that the market moves against you , which is 50 pips below the price of the order and if the limit order was at 1.3378 is 150 pips above the price of the order .
Then you are risking a loss of 50 pips to gain 150 pips . This means that if you win you will get triple the value . So enough with 1 victories for profit . In other words , you only need to win one of three in order to remain a profit trading .
What about margins ? The value of this trade is $ 132,280 ( 100,000 * 1.3228 ) . Then the required margin deposit of 1% of the total , amounting to $ 1322.80 ( $ 132,280 * 0.01 ) .
Then , for example , as your expectations , the euro strengthened against the dollar and a limit order at 1.3378 has been the position will be closed . Thus , the total profit in this trade amounted to $ 1,500 , with the assumption that each pip is worth $ 10 .
| Related Keywords: |
| australian forex trading, singapore forex trading, online brokers, stock and trade, forex trading platform, discount brokerage, forex trading platforms, online forex trading platforms, spread trading, trade stocks, foreign exchange trading, forex trading in singapore, stock trading company, forex trading demo, talking forex, stock day trading, forex trading courses, trade forex online, forex trading broker, best forex trading software |
Written by Unknown
We love the world of forex. Sharing information about forex is our way of showing happiness. Therefore we made a "Campus of FOREX" as a portal to learn forex.
Forex is not something to fear, but fear when you are not able to control yourself in the forex or whatever. When profit in forex it becomes your personal responsibility, and when you lose in forex it also becomes your personal responsibility. Forex simply as a facility to achieve financial freedom, no more no less. Forex is a place to think realistically.
Being successful in forex, it means you are committed to establish a disciplined and thoughtful character. Forex may be the best mirror of your true character. Forex is just forex.
Happy reading.
0 comments:
Post a Comment