FOREX TRADING PURPOSES: Goal in Forex trading is the investor to benefit 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 has bought € 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 in relation to the U.S. dollar. Investors are now able to sell € 1,000 to receive 1208.30 dollars.
In the trade we are able to benefit / profit if the market goes up or going down. His 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 higher (up) please do buy position, and wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (go down) do sell position, wait for prices to fall, do closed (buy) when the currency was below your selling price.
In order for more details, see the illustration below:
A. Handoko get in position BUY EUR / USD at 1.3000, after a certain time
Handoko SELL (CLOSE) at 1.3064 then Handoko gain 64 pips / points (the smallest unit in forex)
If Handoko SELL (CLOSE) in 1250 then Handoko 50 pip loss
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 lose 150 pips
From the example above shows that you can make a profit in two directions. Just how the placement of your starting position.
Note, if you look in the metatrader application (application forex) then:
* Prices used during OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).
* Prices used during 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 usually done through a broker or market maker. As a forex trader you can choose the currency pair that you want to sell / buy 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 the trade, the broker closes the position on the Interbank Market and credits your account with a loss or gain. This could all happen within a few seconds.
RISK OF TRADING
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 an experienced 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. Take classes that offer forex trading courses is recommended that you can understand more about this market and learn how you can minimize losses and maximize profits. Or if not, you can learn to be serious on the internet sites that discuss the issue of forex trading.
In the trade we are able to benefit / profit if the market goes up or going down. His 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 higher (up) please do buy position, and wait for prices to rise, do closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (go down) do sell position, wait for prices to fall, do closed (buy) when the currency was below your selling price.
In order for more details, see the illustration below:
A. Handoko get in position BUY EUR / USD at 1.3000, after a certain time
Handoko SELL (CLOSE) at 1.3064 then Handoko gain 64 pips / points (the smallest unit in forex)
If Handoko SELL (CLOSE) in 1250 then Handoko 50 pip loss
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 lose 150 pips
From the example above shows that you can make a profit in two directions. Just how the placement of your starting position.
Note, if you look in the metatrader application (application forex) then:
* Prices used during OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).
* Prices used during 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 usually done through a broker or market maker. As a forex trader you can choose the currency pair that you want to sell / buy 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 the trade, the broker closes the position on the Interbank Market and credits your account with a loss or gain. This could all happen within a few seconds.
RISK OF TRADING
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 an experienced 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. Take classes that offer forex trading courses is recommended that you can understand more about this market and learn how you can minimize losses and maximize profits. Or if not, you can learn to be serious on the internet sites that discuss the issue of forex trading.