Trading in the Forex Market In the Forex market, your job is to buy and sell foreign currencies. The work is made very simple and convenient than trading securities; and if you have experience in the stock, the better it easier to learn this market. The goal of Forex trading is to exchange one currency with another currency 1 with the desired rate between the pair will change and the value for money you sold will cost than buying time. a concrete example: you buy EUR and profit expectations kinhdoanheurusd foreign exchange rate is the exchange rate between the dong money when compared to other currencies. One example, USD / CHF shows how many new dollars to buy one Swiss franc, or vice versa. In Forex, the currency has always stood as one pair. The reason is that in every transaction you have to sell one currency and buy another currency immediately. This is an example between GBP and USD: GBP / USD = 1.7500 The above exchange rates, you pay 1.75 USD to buy 1 pound. .Long / Short First, you must determine whether you want to buy or sell. If you want to buy one currency (which actually means buy one currency and sell the quote currency), you will wish to buy their currency values will rise and then you sell for the difference. Or in transaction terms would be "long position" or "long position". In Forex terminology: "long = buy" If you want to sell (which means you sell the currency and buy the quote currency), you want to sell your currency will lose value and then buy it back at you to eat the difference. It also called position to sell or "short position". In Forex terminology "short = sell" Bid / Ask All currency pairs are 2-way rate, bid = bid and ask price = price. The bid is always lower than the ask price. Bid price is the price at which the market wants to buy the base currency in the pair. This is the rate that you want to sell to the market. The ask is the price at which the dealer will sell the base currency in a currency pair. This is the price at which you buy from the market. The difference between the bid and ask price is called the spread I can not afford to buy $ 10,000 EUR. Can I trade it? You can use! With initial funding amount of characters you can trade thanks to a loan from the bank. So you can open one account $ 10,000 or $ 100,000 just for signing funds $ 100 or $ 1,000. The amount of funding will sign corresponding to the number of lots can be traded. Now, you only need to focus on the term "lot" as the minimum amount that you can afford. When in the supermarket to buy eggs you can not buy one fruit that have bought 12 dozen eggs 1, also known as one "lot" of eggs. In Forex, it is impossible when buying and selling currencies with only 1 or 2 USD, you have to trade 1 lot common with about 10,000 or $ 100,000 depending on the type of account you choose. For example: You tn that accented GBP increased efficiency in the market against the US dollar. You place an order to buy 1 lot ($ 100,000) with 1% security deposits $ 1,000 and wait for rate hikes. This means you can control one of $ 100,000 or the equivalent value of only £ 1,000 $ sign fund. Accurate your predictions and you decide to close the command at 1.05050 price. You earned a profit of 50 pips or $ 500 (1 pip is the smallest of money 1 point). And with an investment of $ 1,000, you have created is the rate of return of 50%. Your profit is $ 500 on a $ 1,000 investment capital, awesome right? Your-action command When you decide to play, you have placed the deposit that will be returned to your account and together with profit gain or minus the losses you took. The profit or loss will be charged to your account. Interest rates in Forex unlike in other markets. The trader will pay or receive daily interest if the transaction through 5pm EST time. If you do not want to be / charge interest on your trading, you simply close the trading orders before 5pm EST, this is the end of the day. Every time currency trading, you would borrow money to buy a another currency, so the interest rate is required. The interest rate you will pay to borrow money for the transaction, and you'll also be earning an interest rate from the currency you buy. If the currency is purchased in the transaction with the higher interest rate your loan type, you will gain a profit - and the transaction will be beneficial to you if you let through the day. This is a notable factor. You want to know the interest rate for each currency? This is the day 11-07-2006 update: rate account transactions "Fantasy" You can open a free demo account first. This account has functions not unlike a real account with full graphs, tools, and data analysis with real, true interoperability. However this is not your account for business purposes because it helps you learn and gain experience from real floor you have the confidence to step into the real floor. This account will test levels and reduce your risk when the real floor. You have to play the demo account for at least 2 months before you are thinking of putting their money into real transactions. Well, you have to DEMO at least 2 carbon
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