example:
|
Aksi Trader
|
E U R
|
U S D
|
|
Anda membeli Euro/USD dengan harga 11.800
|
+ 10.000
|
- 11.800
|
|
2 minggu kemudian anda menukar 10,000 euros kembali ke U.S.
dollar pada harga 1.2500
|
- 10.000
|
+ 12.500
|
|
Anda menghasilkan keuntungan $700
|
0
|
+ 700
|
The real exchange rate is the ratio of one currency valued currency to another. For example, the exchange rate of USD / CHF shows how many U.S. dollars can purchase one Swiss franc, or how many Swiss francs you need to buy one U.S. dollar.
How to Read Forex Quotes
In the Forex market , currencies are always in pairs , such as GBP / USD or USD / JPY . The reason is because they are paired in any foreign exchange transaction , you are at the same time when opening a position to buy one currency and sell the other . Here is an example of a foreign exchange rate for the British pound against the U.S. dollar :
The first currency listed next is known as the base currency . GBP / USD for example , in this example , the British pound is the currency of the first , while the second one on the right is called the counter or quote currency is the U.S. dollar .
When buying , the exchange rate tells you how much to be paid in units of the quote currency to buy one unit of the base currency . In the example above , you must pay an amount of 1.51258 U.S. dollars to buy 1 British pound .
When selling , the exchange rate tells you how many units of the quote currency that can be sold for one unit of the base currency . In the example above , you will receive at 1.51258 U.S. dollars when you sell 1 British pound .
The base currency is the " foundation " to buy or sell . If you buy the EUR / USD this means you will buy the base currency and simultaneously selling the quote currency . In a simple conversation , " buy EUR , sell USD . "
The strategy , you would buy a currency pair believe that in the base currency will go up compared to the quote currency . And you will sell the currency pair if the base currency is believed to be depreciated / weakened ( loss of value ) to the quote currency .
If you do the transaction buy ( which actually means buy the base currency and sell the quote currency ) , you want the base currency to increase in value and then you would sell it back at a higher price . In speaking traders , this is called " Long " or taking a " long position " .
If you do sell transactions ( which means selling the base currency and buy the quote currency ) , you want the base currency fall in value and then you would buy back at a lower price . This is called "short " or taking a " short position " .
Bid / Ask
In the world of forex, there are two quotations: the bid and ask. Bid prices are usually lower than the ask price.
Bid Price is the price at which a broker is willing to buy the base currency in exchange for the quote currency. Bid Price is the best available price at which the trader will sell to the market.
Ask Price is the price at which a broker is willing to sell the base currency in exchange for the quote currency. Ask Price is the best price available in which a trader will buy from the market.
The difference between the Bid and Ask is known as the spread. For example, EUR / USD had a Bid price is 1.3456 and the ask price is 1.3458. So when you want to
sell EUR, you will sell at the price of 1.34568 euros. If you want to buy the EUR, the euro bought at the price of 1.34588.
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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.
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