Understanding Forex More Close

Before the deal forex or better known as the foreign exchange market, it's good you must first learn what is forex, how to conduct the transaction and the risk of investment. As they say "No I Do not Know Then."

Understanding forex through JegForex

FOREX means foreign language in the Foreign Exchange is translated more or less means the Foreign Exchange Currency, or often referred to by the term "foreign exchange". Forex itself means "Foreign Currency". To this movement forex business is very large with a daily average transaction turnaround over U.S. $ 3 trillion.

There are two considerations for the purpose of selling and buying currencies. About 10% of the rotation in the Forex is from companies and governments that buy or sell products and services with other countries so that the return must convert foreign currencies into their domestic currency. 90% have other aims to profit from the increase or decrease in the exchange rate, traders To speculator, trade / deal in the "Forex" is very attractive because of the opportunity to get a larger profit and quicker.

Currently, more than 85% of all daily transactions involve trading of the currency fluctuation of the world, including U.S. Dollars, Japanese Yen, Euro, Pounds Sterling, Swiss Franc, etc.. Along with the progress tehnologi, Forex transaction at this time can be done in a way through online trading, where investors can trade Forex transactions directly via the internet with real time price movements.

Transactions in the Forex

Sell = Bid Price Ask Price = Buy

High = the highest price that occurred at the time / day

Low = the lowest price that occurred at the time / day.

Symbol Type = Currency sold

Movement in prices in Forex, always seen the price "bid" (price / SELL) and "ask" (purchase price / BUY). Price "bid" is the price to sell a currency, and price "ask" is the price to buy a currency. In other words, the price movements in the Forex market, the currency is the first as the base currency, and currency is the second object as a benchmark.

If the price movement to increase the number, the currency weakening to a comparison object, if the price movement has decreased the number, then the object's benchmark currency to increase.

If you want to SELL (Sell), the price is the price you get at the BID, while if you want to BUY (Buy), the price is the price you get at the ASK

Example:

If we take the position of the transaction Purchase / Buy / Long on the currency GBP / USD, the price level of 1.9765 (at the ASK price) with the number of quantity (lot) of 1 lot. So to get the advantage / profit, these positions have to be closed / closed when the price on the column SELL (number to the left / BID) indicates the price level at 1.9765 or more. However, if the position of Purchase / Buy / Long we have closed / closed on the price level of 1.9765 or less, then the transaction Loss / Loss.

The benefits of Forex (foreign exchange market) Modern

In the online Forex (online trading), you will find that the Forex offers several advantages over other markets, including: 24 Hour Forex Trading Transactions

Forex market trading is a 24-hour, offers an advantage over the top of the capital market / market share. In a place in the world there are always buyers and sellers actively trading foreign currencies. Traders can always react to the news, and P & L / Profit-Loss was not affected by hours of work reports, or conference / analyst reports.

Superior Liquidity

With Forex trading volume level is 50x greater than the New York Stock Exchange Market, there are always broker / dealers wish to buy or sell currencies in the Forex market. Liquidity of this market, especially the main currency of its assistance to ensure price stability. Traders can almost always open or close a position at a fair market price.

How the most effective management in a transaction in the Forex market is to calculate carefully and strict relationship between risk and margin / fund that is used in orderly and consistent use restrictions termination oreder / transactions to be conducted. Reflect on and define a system of analysis in the Forex transactions, mengkontrol and emotional self.

Possibility 2 Direction

In Forex transactions, you will have the opportunity to gain profit / benefit in the 2-way trade, that is when prices rise and descend. Example: GBP / Usd = 1.9865, estimated at Usd akan currency weakened against the GBP, the action / transaction that you have to do is to buy (BUY). If the currency is estimated Usd menguat action against the gbp / transactions you need to do is sell (SELL). Uptrend, moving the price increase (or BUY LONG) downtrend, the price moves down (or SELL SHORT)

Funds needed in Forex Transactions

Comparison 100:1

In Forex, the comparison can be 100:1 means that you can conduct a transaction to buy / sell foreign currency only with the margin / fund of 1% of actual value. Example: if you want to do actions to Buy Great Britain Pounds Sterling, then the funds must guarantee that you remove only as much as $ 1,000 USD from the actual value of USD $ 100,000 for 1 lot.

That way, you can increase the purchasing / selling in the deal in the Forex market with less cash expenses that must be removed. In this case, can increase the return / profit and reduce risk / loss.

Sample Transactions:

Investment in trading Forex, you embed in your account / trading account is USD $ 10,000. You predicted / estimated price that the $ USD at this time the price is low and tobe strong against the Swiss Franc. For this strategy, then you have to do actions like (buy) and forward exchange rates increase when you do actions like these, the price bid / ask for the GBP / Usd is 1.9760/1.9764. (Which means you can buy or sell diharga 1.9764 at price 1.9760.). When do you buy action, means that you conduct a transaction on the purchase price of 1.9764.

Comparison with the 100:1, then you can buy 1 lot of margin / collateral funds of USD $ 1,000. Hence, the investment of funds in the account / accounts you will be reduced to be USD $ 1,000 USD $ 9,000 (where the insurance fund $ 1,000 USD will be refunded to your trading account at the time you close a transaction that has been running).

As you have previously estimated that the gbp tobe strong against Usd, until the exchange rate GBP / Usd reach 1.9864/68. Then you can close the transaction by performing the action you sell (sell) on the value of 1.9864.

Calculation:

Close Price - Open Price = 1.9864 - 1.9764 = 100 point / pip: 0.0100

profit = 0.0100 x 100,000 = USD $ 1.000 Usd

Resume:

USD initial investment = $ 10,000, the funds used: $ 1,000 USD

Profit = USD $ 1000 Return on Investment = 100%

Time Forex Transactions

Open 24 hours every day from 2 PM Sunday hours New York time until Friday 4 hours New York time Pm

Market Hours

• Timezone New York GMT
• Tokyo Open 7:00 pm 0:00
• London Open 3:00 am 8:00
• New York Open 8:00 am 13:00

Understanding Technical Analysis (graph)

Technical analysis is a method predict price movements with attention to data that solely market-generated. Using data from a particular market is most common in the type of information analyzed by a technician, but will also save and carefully observe the volume and open interest in future contracts.
Please open Technical Analysis for more information.

News Analysis of the (fundamental)

Take a fundamental approach to analysis based on the news or rumor circulating in market. Like we know together, such as financial exchange and money market shares are very sensitive to the news that are circulating in the market.
Please open Fundamental Analysis for more information.

Note: When the country experienced a "negative factor" then the value of the currency the country will be weakened, if the country is experiencing "positive factor" then the value of the currency into the country strong.

Hopefully useful to all of us ..
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