If you intend to buy dollars in the bank or money-changer for some purpose, you must submit a certain amount of money in the amount of rupiah worth of dollar currency you want to buy. Online forex transactions through brokers on the Internet is different from such transactions. In the forex-trading online, you buy a certain currency with another currency that you borrowed from the broker. Let's say you bought 1 lot EUR / USD at 1.3450 exchange rate means that you have purchased with borrowed 100.000 Euro 134.500 U.S. $ from your broker. Your broker does not lend money never worried that much because the dollar 100.000 Euros you buy you never actually take but you keep returning the same broker.
Yet your broker requires a deposit which is intended to cover the risk of loss if the currency moves in the direction of adverse position your transaction. This deposit is called margin, a much smaller amount than the actual transaction value.
The comparison between the actual value of the transaction with the required margin is known as leverage. The amount of leverage provided by the broker is not the same, usually ranging between 10:1 to 500:1. For instance, a broker set a leverage of 200:1, then for 1 lot of transactions valued at U.S. $ 100.000 is required margin of 500 U.S. $.
Advantages And Disadvantages Margin
With the margin so your capacity to be doubled in trading far above the funds you have. Let's say you have a fund of $ 2000 in your account. If your broker gives leverage of 200:1 then you have the ability to conduct transactions for a maximum of $ 400,000. However you practically impossible to use all the funds available for margin, you also must leave sufficient funds to cover losses that may occur in the transaction.
Because your ability to trade into the fold any movement on the currency markets will have an impact also doubled, be it profit or loss. Let's say a fund of $ 2000 that you have decided to use $ 500 dollars as margin for the purchase transaction currency pair EUR / USD as much as 1 lot on the price of 1.3440. A few hours later EUR currency moves up so that the value of EUR / USD to 1.3475. If at this price you decide to close the transaction then you get a profit of 35 pips. Since 1 pip in currency EUR / USD is worth $ 10/lot then your profits in this transaction is 35 x $ 10, which is $ 350. Margin allows you 17.5% profit from your investment in just a few hours. But if the market moves against your position, say in this case the value of EUR / USD fell to 1.3410 and you decide to close the transaction to avoid further losses you will incur a loss sebesa 30 pips, or $ 300. In this case the use of margin to make you lose 15% just in a short time.
Because the impact is doubled, whether profit or loss, then you must be very careful in using margin when trading. Carelessness in the use of margin-trading forex is often the biggest cause of fatal losses of a trader.
Senin, 16 November 2009
Sabtu, 31 Oktober 2009
FOREX Introduction
Foreign exchange market, or which is known as FOREX is the largest financial exchanges in the world with a daily transaction volume reaching more than 2 trillion U.S. dollars. Compare this with the daily transaction volume of the New York stock market is only 25 billion U.S. dollars.
Then what is traded in FOREX? Of course, money. Stock exchange is a transactions single currency with another currency. The basic principle, the trader buys a currency type at low value and resell it at a high value, or otherwise sell a currency at a high value and buy them back when the currency fell in value. These currencies are traded through a dealer / broker, and are always traded in currency pairs. For example Euro U.S. Dollar (EUR / USD), U.S. Dollar and Japanese Yen (USD / JPY), British Pound and Swiss Franc (GBP / CHF), and so forth.
In contrast to other financial markets like stocks that have a trade center with the location and time specific trade, Forex has no perdangangan center. Forex trading via interbank transactions that occurred throughout the world and takes place continuously throughout the day.
Until the end of 1990, the stock exchange can only be followed by financial institutions, large and private individuals who have large capital. In those days you just can participate in forex transactions if it has 10 hinggal initial capital of 50 million dollars. Forex originally only done by the bankers in order to limit the risks due to currency fluctuations. Forex is not for traders, small traders like us: us and you. But with the development of internet technology, the forex brokers and dealers can split large transactions required in the forex transactions with a smaller volume so that the trader-trader with limited capital can come and participate. Now many common forex brokers that require initial deposits under $ 500 U.S., and some brokers even provide initial deposit requirement of only U.S. $ 10 or less.
Forex-trading now is available to anyone. All you need is a computer with internet connection is good enough and forexology material contained in this site!
Then what is traded in FOREX? Of course, money. Stock exchange is a transactions single currency with another currency. The basic principle, the trader buys a currency type at low value and resell it at a high value, or otherwise sell a currency at a high value and buy them back when the currency fell in value. These currencies are traded through a dealer / broker, and are always traded in currency pairs. For example Euro U.S. Dollar (EUR / USD), U.S. Dollar and Japanese Yen (USD / JPY), British Pound and Swiss Franc (GBP / CHF), and so forth.
In contrast to other financial markets like stocks that have a trade center with the location and time specific trade, Forex has no perdangangan center. Forex trading via interbank transactions that occurred throughout the world and takes place continuously throughout the day.
Until the end of 1990, the stock exchange can only be followed by financial institutions, large and private individuals who have large capital. In those days you just can participate in forex transactions if it has 10 hinggal initial capital of 50 million dollars. Forex originally only done by the bankers in order to limit the risks due to currency fluctuations. Forex is not for traders, small traders like us: us and you. But with the development of internet technology, the forex brokers and dealers can split large transactions required in the forex transactions with a smaller volume so that the trader-trader with limited capital can come and participate. Now many common forex brokers that require initial deposits under $ 500 U.S., and some brokers even provide initial deposit requirement of only U.S. $ 10 or less.
Forex-trading now is available to anyone. All you need is a computer with internet connection is good enough and forexology material contained in this site!
First Step Towards Prosperity
Forexology is a first step you to success in forex-trading. No matter whether you want to make forex as a business part-time or full-time, you need knowledge and skills sufficient to survive and succeed in this business.
In fact 90% of traders lose money in forex transactions, only 10% of the elite traders are able to make a profit consistently. This means that 90% of traders do not know what to do in this business. They are only armed with spirit, hope, courage, and perhaps a bit of luck. They go jump in the forex transactions rather than as a trader, but as a gambler.
Surely you do not want to be part of a 90% trader-trader's ridiculous, otherwise you are hoping to be part of the elite 10% traders are able to live a life of abundance through their profits everyday.
Forexology is forex educational materials that will provide you with sufficient knowledge and skills needed to become a successful trader. A trader who is able to do three things:
* Make a profit
* Taking advantage
* And the second repeat it constantly.
Materials strived to forexology arranged so that mugah understood by anyone interested in forex, no matter what educational background and their previous profession. You can learn this material gradually forexology, according to your ability and availability of time you have.
Forexology Through this you will learn how to see the opportunities in forex transactions, how to open and close the transaction at the right time, and how to maximize profit and limit risk of loss.
After you finish studying the material forexology, there are provisions that you need to have but can not be given in forexology, namely the experience. Open a demo account, and do transactions with your demo account for at least three months before you open a real trading account.
Congratulations and success to you!
In fact 90% of traders lose money in forex transactions, only 10% of the elite traders are able to make a profit consistently. This means that 90% of traders do not know what to do in this business. They are only armed with spirit, hope, courage, and perhaps a bit of luck. They go jump in the forex transactions rather than as a trader, but as a gambler.
Surely you do not want to be part of a 90% trader-trader's ridiculous, otherwise you are hoping to be part of the elite 10% traders are able to live a life of abundance through their profits everyday.
Forexology is forex educational materials that will provide you with sufficient knowledge and skills needed to become a successful trader. A trader who is able to do three things:
* Make a profit
* Taking advantage
* And the second repeat it constantly.
Materials strived to forexology arranged so that mugah understood by anyone interested in forex, no matter what educational background and their previous profession. You can learn this material gradually forexology, according to your ability and availability of time you have.
Forexology Through this you will learn how to see the opportunities in forex transactions, how to open and close the transaction at the right time, and how to maximize profit and limit risk of loss.
After you finish studying the material forexology, there are provisions that you need to have but can not be given in forexology, namely the experience. Open a demo account, and do transactions with your demo account for at least three months before you open a real trading account.
Congratulations and success to you!
Sabtu, 10 Oktober 2009
forex introduction
Foreign exchange market, or which is known as FOREX is the largest
financial exchanges in the world with a daily transaction volume
reaching more than 2 trillion U.S. dollars. Compare this with the
daily transaction volume of the New York stock exchange which only 25
billion U.S. dollars.
financial exchanges in the world with a daily transaction volume
reaching more than 2 trillion U.S. dollars. Compare this with the
daily transaction volume of the New York stock exchange which only 25
billion U.S. dollars.
Then what is traded in FOREX? Of course, money. Stock exchange is a
transactions single currency with another currency. The basic
principle, the trader buys a currency type at low value and resell it
at a high value, or otherwise sell a currency at a high value and buy
them back when the currency fell in value. These currencies are traded
through a dealer / broker, and are always traded in currency pairs.
For example Euro U.S. Dollar (EUR / USD), U.S. Dollar and Japanese Yen
(USD / JPY), British Pound and Swiss Franc (GBP / CHF), and so forth.
In contrast to other financial markets like stocks that have a trade
center with the location and time specific trade, Forex has no
perdangangan center. Forex trading via interbank transactions that
occurred throughout the world and takes place continuously throughout
the day.
Until the end of 1990, the stock exchange can only be followed by
financial institutions, large and private individuals who have large
capital. In those days you just can participate in forex transactions
if it has 10 hinggal initial capital of 50 million dollars. Forex
originally only done by the bankers in order to limit the risks due to
currency fluctuations. Forex is not for traders, small traders like
us: us and you. But with the development of internet technology, the
forex brokers and dealers can split large transactions required in the
forex transactions with a smaller volume so that the trader-trader
with limited capital can come and participate. Now many common forex
brokers that require initial deposits under $ 500 U.S., and some
brokers even provide initial deposit requirement of only U.S. $ 10 or
less.
Forex-trading now is available to anyone. All you need is a computer
with internet connection is good enough and the material in this site,
the following material I will next post ..
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