On this occasion will discuss the transaction in forex trading : what instruments are traded , how the price of an instrument and also the types of transactions can be done in forex trading .
In forex trading , currencies are always traded in pairs , known as currency pairs . There exist major pair commonly found in almost all brokers are EUR / USD , meaning the currency pair Euro and U.S. Dollar . There is also another currency that is not less popular : GBP / JPY , GBP / USD , USD / JPY , and of course many more . That underlie why currencies are always traded in pairs with pairs like this , then the trader can transact directly " sell " on a pair , without having to " have " the first pair .
As another example , a trader can " sell " the pair USD / JPY without " got " the first pair . Thus , traders are not directly selling the pair USD / JPY , which means a trader selling USD and buying JPY . The point in forex trading , we can directly conduct transactions on all pairs are available either selling or buying , depending on the results of our analysis to the movement of the pair .
Pips and Lots .
Next , the basic terms that need to be known in forex trading is the pip and lots. Pip is a unit change in the value of forex trading . Example : EUR / USD moves from 1.3050 to 1.3051 , it means that the price change (up ) 1 pip . A pip is the last decimal digit movement on a pair . Pip is also used to calculate profit and loss . While the lot is the usual amount of contracts traded . The default value is $ 100,000 per lot . Some brokers also provide a mini lot with a value of $ 10,000 . However, there are also brokers that offer flexibility in the volume of transactions without having in lots , but the quantity is flexible according to the trader wishes .
Bid, Offer and Spread . Well, then we need to also understand what it is and the bid and offer spread Bid is the price prevailing when we sell ( pair ) , Offer price is valid if we buy ( pair ) while the spread is the difference between bid and offer for example Example : For EUR / USD applies : Offer Bid 1.3050 1.3052 Means , if we are going to buy the pair EUR / USD will be charged a price of 1.3052 , while if we sell will be charged the price of 1.3050 . Spreads for EUR / USD when it is 2 pips .
Types of Transactions in Forex Trading
The following is a discussion of transactions in forex trading . Basically transactions we can do is to Buy and Sell pairs available . However Buy / Sell still has the option derivative .
There are 2 types of orders for each transaction that is :
Instant executions Order ( ato buy sell ) is performed at the current market price .
Order pending orders that will happen if you touch a certain price point ( or other word is the price of booking) .
Pending orders are divided into 4 types:
1 . Buy Stop : Installing a buy order at a certain price ( the price above is running ) , in the hope the price goes up , and the price will automatically run a buy order . The hope of course the price continues to move up again to make a profit .
2 . Sell Stop : Installing a sell order at a certain price ( the price below is running ) , in the hope the price goes down , and in the price of the sell order will automatically run . Harpannya prices will continue to move down again to make a profit .
3 . Buy Limit : Install a buy order at a certain price ( the price below is running ) , in the hope the price goes down to the price . If the price we have set it touched , it automatically runs a buy order . Hopefully, after that the price then moves up or call it mental at that price .
4 . Sell Limit : Install a sell order at a certain price ( the price below is running ) in the hope the price moves up to that price . If the price we have set it touched , it automatically runs a sell order . The hope, for after that the price will move down ( or mentally at that point ) in order to profit .
To determine when the best time Buy or Sell ? Buy at the best time is when the price is low and we expect going to go up , and Sell when prices are high and we expect going down . The concept is simple look . The problem then is : when we know that the price is going to go up ato down ? And how to determine whether the price will go down or up positive . To make that decision then we get into a discussion of the analysis in forex trading .
| 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