Forex is an abbreviation or abreviasi from Foreign Exchange (currency exchange).
Forex is the Act of trading in the currency of a country with the currency of other countries for a variety of reasons, such as business transactions or business tourism. Because the business is now run on a global level, the perceived need for currency transactions between countries. Another reason to trade the currency factor is speculation based on a goal to achieve profits, which is also the main purpose of this website.
The Bretton Woods agreement in 1991, it was decided that the currency can be traded freely. And since then, each country's currency value to be different. Here's what later became the beginning of Forex trading. Forex services usually run by commercial banks or investment companies operating on behalf of each of its customers, and by providing scope for speculation of currency trading on the internet.
Forex as a Hedge (hedging)
Commercial companies that run vulnerable at an international level trading would risk losses due to fluctuations in the value of the currency of a country which becomes its market. Therefore the Forex market offers a way to protect the value of a currency, which is known by the term "hedging the risk".
The Forex market is what then determines the interest rate transactions to be carried out. Well, to do so, the trader will sell or buy a currency swap market or on the forward market. At such times, the bank usually determines the interest rate which then allows the trader to find out for certain exchange rate interest rates are used to protect the value of (hedge) of a business due to the loss of value of exchange rates.
For Forex Speculation?
Its normal supply and demand vary in every country due to the flow of trade, interest rates, and strengthening the economy. Because that then happen currency fluctuation in every State. Well, this is such a fluctuation is then utilized by many of the solicitor to bet against perbubahan the value of the currency of each country.
Traders speculate by selling or buying one currency against another currency with the expectation that the currency strengthened, they buy or sell their currencies weaken.
Forex Trading Strategy
Many unique things about the techniques, strategies, and markets in Forex trading. There is no opening, no closure. Simple, because the Forex market is not sleeping as we are. Most Forex trading strategy is influenced by various factors. The Forex market does not get a Commission from any Forex transactions in it. In addition, regulation in it also a little, or even no strict regulation. So that this gave rise to the paradigm that Forex is not only intimidating, although the Forex market is the largest in the world of trade.
However, where there is a good trading system, with a strong discipline, as well as the desire to learn in them, the Forex market can be a profitable place for trade.
For traders who have a small capital, usually under $ 25,000, it is strongly recommended to Transact follow trends. The exact strategy used is the entry into a trade that could not be predicted, so it can be moved anywhere. Although this could be considered such strategies cannot be trusted, but the transaction following the direction of the prevailing trend can increase the chances to win in a long period of time.
Other Forex trading strategies, which is useful to increase the chances to win, is to have more than one account. You may only have one account and one account is genuine. This is done to assure that you will continue learning even though you have already switched to use real dollars. Use the demo account to test alternative trade that You tekuni. When you have enough money, you can try trading on two or three lots at once, not one. It is considered safer than dealing with only one lot.
When choosing a strategy that will be used for transacting Forex, it's good You observe the Forex daily chart. With getting used to doing so, you will be able to achieve many advantages. Make sure that you have considered ripe-ripe about five giant currency movements before taking a position. The five giants of the currency is the Euro/Dollar, Dollar/Yen, Switzerland Francs/Diollar, and the Dollar/Pound. Notice the fifth currency carefully, do not let indifferent towards the fifth movement of these currencies.
Don't rush to calculate profits on 20 trade first. Even so, continue to pantengi and tekuni what are you doing, are you sure it will bear fruit is sweet. After you are sure where Your trade direction, increase profits by taking some of the trading position and also use some variation in the placement of stop-loss. After that, familiarize yourself with the existing system and begin to reap the profits.
Know Forex Leverage
Forex Leverage is the amount of money provided to investors and traders by brokers. It could also be called the loans given to investors by a brokerage handling big multiple accounts. In some cases, the investor usually gets a leverage of 50: 1, 100: 1 or 200: 1. The ratio depends on the broker and the size of the position that was taken. Standard Forex trading is 100,000 currency units. In this case, you may be able to leverage 100: 1 or 50: 1. To leverage of 200: 1 leverage, given only to those who have an account under $ 50,000.
The Advantage Of The Leverage
One of the reasons why some people choose to invest in Forex leverage value is high. In addition, only with less money from brokers, you can reap great benefits. For example, when a broker gives you the leverage of 400: 1, it is possible for you to double your account with 0.25% movement in the right direction. With the leverage of it you it is possible to sell up to 400 times the amount available on your account.
The Loss Of Leverage
It should be noted also that leverage can be turned to your detriment. Just as when you were able to multiply your account within a day, then Your account could have been losing amounting to 0.25% in the wrong direction. Most investors forget this when they rely on too much leverage.
Get To Know The Forex Margin
In order to be allowed to trade with Forex leverage, you will also be required to set aside a portion of the money you have as a backup. This is commonly called a "good faith deposit". This number is usually just a few percent of your position at the time. For example, when you intend to take up the position of $ 100,000, you will be required to invest the $ 100,000 sebeasar. This is what is referred to as a margin of 1%. Important note about using Forex leverage for your own good.
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