Futures trading has some differences compared with other kinds of trafficking. Because of these differences is precisely the extraordinary appeal will sell futures. YYou will discern the term
'two-way opportunity' and 'leverage', you do not get in the form of trading financial instruments in general.In fact, in stock trading will be very hard to find.
INTRODUCTION TO FOREX
Maybe you've heard the word "Forex". As an intro, we will discuss about forex itself.
What precisely is the "forex" it? Forex is acronym (abbreviation) of "Foreign Exchange", or foreign currency exchange. The term is more often the public is the foreign exchange (forex).
Speaking about the forex (foreign exchange) is talking about the value of a currency against another currency. The currency than its value against other currencies, which then form the "exchange" or "exchange". That you know best example is probably the US dollar exchange rate (USD) currency eurupe: namely EUROPE (EUR). Comparability of the value of the USD to the EUR that is then you are familiar with the term "dollar exchange rate against Europe". If you look at banks or money changers, or if you also look at developments in television or newspaper currency, the europe exchange rate against the dollar is often denoted by the symbol USD / EUR.
You certainly know that in the past ten years, the growth of forex trading (forex trading) in InIn Indonesia is very speAlmost the whole society has to forex or even directly involved in forex trading. It is quite fair considering the opportunities that can be achieved in forex trading are enormous. The maThe magnitude of these opportunities among other things because the money mart is the largest financial market in the world, considering all economic activity in the world is definitely geared to the currency. volume of more than 3 trillion dollars per day! You could suppose the money market will continue to run as long as humans still carry out economic activitiIn fact, if you are trading forex online, you can make transactions whenever you want for 24 hours a daylight, five days a weekweek
Forex Buy Sell Tading
Accept you been to exchange USD to EUR (euro)Well, at that stage you're actually involved in the money market.t. Action "swap" USD into EUR a forex dealing! At that point you're performs the buying and selling of foreign exchange. When you "swap" your USD into EUR, basically you're selling your USD and at the same time: buy EUR.
You can cause this kind of transaction through a bank or money chanYou hardly come to the bank or money changer and then perform the foreign exchange transactions Or you simply call the treasury officer at the bank you trust to carry out such transactions. We call it the way transactions such as transaction conventional manner.
Along with the growth of technology, did you know that now you can easily do similar transactions online? You dYou do not need to operate anywhere else to conduct forex transactions.gh of the house or any place you want, which is important there is a computer and an Internet connection. Accompanied by a cup of coffee or tea, you can switch from a chair or sofa, comfortable, perhaps even from the bedThere is little conflict between the forex trading through online brokers with foreign exchange transactions that may be used to do the majority of our society in the bank or money changer. AlVirtually all online forex broker, forex transactions facilitated by the system of contracts and the margin (the marHere are some tips related to the online trading (with a margin).
1. Object trade
In this example, the object is still the same tradWhat is with thatOf course money matterBut here you are swapped is a contract based on the value of the currency.urrency.Perhaps a little bit confusing.Not to be mixed up, there will be further clarification of this point.t. Put it simple, let's just act a certain currency transactions as if to buy "shares" of certain countries.Variations in the currency of the country are an indirect picture of market sentiment towards the economy of the country.. TIn that respect are several currencies called "majoThey are the currencies of developed countries and sold widely in world financial markets.ial markets. Below is a table listing the currencies included in the major currency pairs.
Internationally, the currency symbol consisting of three alphabetiThe first two alphabetic characters are the identity of the country of origin of the currency, usually the initials of the country.f the country. The third letter is the initial of the name of its currency.
For example: USD. The first two letters (US) Are the initials of the name of the country: the United States, which is as well known by the name of the United States in the Indonesian language. What is unique is the CHF, Swiss franc currency symbol. CH is the initials of Confoederatio Helvetica is the Latin name of the Swiss Confederation, while the letter F is the initials of its currency: franc.
2. Directions transactions
A so-called "two-way opportunity". That is, you can even look for opportunities to profit when the market is up or downThere are two cases of transactions: purchase (buy)y) and sell (sell). Transactions BUY often called by LONG, while also called SHORT SELL. If the cost is in kitten rise, then the transaction BUY (LONG) yYou can execute to make a profit.Conversely, if prices are falling, do not worry because the transaction SELL (SHORT) You also can benefit from exercise. Why is this so, we will discuss later.
3. Leverage & Contract Size
The online forex broker to use leverage in carrying out forex trading. WiDone with this leverage, a relatively small investment firm can make transactions with a contract value far greater.his is because the services leverage, that if we mean is "leverage". Perhaps it would be easier if we analogy with a car jackWith the jack, you simply need a little power to lift our car body that weighs maybe hundreds of kilograms.sGood, the "how" of this leverage approximately you like a car jack that was.s.Instances of its application like this::On the broker to employ the leverage of 1: 100, then you just need a fund of $ 1,000 just to make a transaction valued at $ 100,000.. An amount of $ 1,000 is called the margin, while the value of transactions amounting to $ 100,000 are called Contract Size. That is, the capital you need only 1% only.
Meanwhile, if you do conventional forex transactions, to trade at $ 100,000 then you have to provide capital amounting to $ 100,000. In other words, the capital you need at 100%.
4. Time reflects markets trading time
We remarked that time that the forex trading takes place 24 x 5, i.e. 24 hours a day and 5 days a week.This is due to the world financial markets turning running in a daytime.. Here is a time table of world trade:
TIME ZONE GMT GMT *
New Zealand is open 23:30 04:30
Tokyo is open 00:00 07:00
New Zealand cap (Tokyo still open)
07:00 14:00
London open 08:00 15:00
Tokyo closed (London still open)
09:00 16:00
New York is open 13:00 19:00
London closed (New York still open)
17:00 24:00
New York closed 22:30 03:30
* In winter, for pm is GMT + 8
Meanwhile, if you do regular foreign exchange transactions, you have to wait for the money changer or his bank is clear. For the record, the banks in Indonesia on average are not serving forex transactions above 15.00 or 16.00.
5. How to transact
Increasingly sophisticated medical technology increasingly expensive health costs. Nowadays, virtually everything Desire to pay utility bills, send money to friends or family, or even shopping, you do not need to leave home again. do not need to leave home againAll you necessitate to do was turn on the computer, connect to the internet, and voThe transaction had taken place. plForex trading is too comTo carry on foreign exchange transactions, all you need is a computer connected to the Internet.o the Internet.There are even some brokers who provide mobile trading facility for its clients.. WiWith the facility, you can make transactions via PDA or smart phone that you holdCompare practicality when you have to get to the bank or money changer to make transactions.
Quote
It was noted earlier that the currency is transacted in a currency pair. BefoIn front we go further, we will learn about the currency pair itEstimating from the type, currency pairs are divided into two:1. Major Currency Pairs, or Majors That currency pair involving the major currencies and traded against the USD. Which includes the major currency pair is the EUR / USD, GBP / USD, AUD / USD, NZD / USD, USD / JPY, USD / CHF and USD / CAD.
2. Cross Currency Pairs or Cross Rates Namely currency pair that does not involve the USD. For example EUR / GBP, EUR / CHF, GBP / JPY and others.
The first currency mentioned we refer to as the base currency, while second currency we call the counter currency. When you do a transaction BUY (BUY), then in fact, you BUY base currency and at the same time SELL counter currency. ConvConversely, when you create a transaction BUY (SELL), then you do is SELL base currency and at the same time BUY counter currThis is one reason why you could make out a SHORT (SELL / SELL)L) In advance when the cost falls. For eFor instance, when you do a SELL EUR / USD, then the price of EUR / USD down, the greater your benefits.you already know that no such thing majors and cross rates. Good, now you will learn how to read the price derived from the exchange rate of the currency pairs mentioned above.
Bid / Ask
In forex trading, currency pair traded in a BID and ASK price basis. A BID meruakan benchmark for you if you want to do transactions SELL, while the ASK price on the contrary, is a benchmark for you to hold out a transaction BUY.
Writing the Bid and Ask is usually like this:
From the model above, the BID he is 1.30000, while the prices of its ASK is 1.30020. So Hence if you want to perform a transaction BUY, then your transaction will be carried out at the price of 1.3Conversely, if you desire to do a SELL transaction, then your transaction will be carried out at the price of 1.30000.00. It's easy?
You can also assure that the ASK price is always higher than the BIThe conflict between the BID ASK it is the spread.ad.
BIThe BID is also frequently referred to as EXCHANGE BUY.hat is the price used is the merchant if they want to BUY from you. Or else, ASK has another name as KURS SELL, which means that traders always use these prices when they will SELL it to you. Therefore, based on the example above, if you are going to buy the EUR from the merchant then the price is equal to 1.30Conversely, if you desire to sell EUR to the merchant then the price is equal to 1.30000 per USD.0000 per USD.
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