Forex Trading - hosting

Forex Trading

If you might be wondering what is forex? Forex swap is a process whereby you can buy and sell currencies. For example, you may buy British pounds (US dollars Bembadlthm owned), and after rising dollar pound exchange rate is you sell pounds and buy dollars again. At the end of this process you will get the largest number of dollars than you owned at the beginning.

Forex market liquidity has currently more than they could find in the stock market. Forex Trading spread between banks across the globe, which means that trading continues on the four and twenty hours a day.

Unlike stock markets, the forex trading is performed using a large leverage, usually equal to 100. Which means that an investment of $ 1,000 you can control the $ 100,000 and then increase the chances of achieving the potential profits. Some brokers also provide the so-called Forex mini accounts, which are no more than the minimum deposit them for $ 100. Which provides the opportunity for individuals to enter this market with ease.

In Forex, the term "code" refers to two parts - one for the initial currency and the other for the second currency. For example . Van usdjpy code consists of US dollars (usd), Japanese Yen (jpy).

As is the case with the stock - you can apply technical analysis tools on the charts for the Forex. Rolling indicators can be configured for "symbols" FX format that allows you to apply a successful trading strategy.

Example Forex transactions

Suppose you are trading with an account with a balance of $ 25,000 and the margin requirements by 1%. If we assume that the current price of the euro dollar pair is 1.3225 / 28 and you you put a trading market is to buy one lot of 100,000 Euros at 1.3228, expecting that the value of the euro rising against the US dollar. At the same time, have you put a stop loss at 1.3178 is representing a maximum loss that can be carried and which is equal in this case 2% of the account balance, in the event that the market has taken against your path, and then the value of this potential loss would be 50 points without the strike price and the other side will develop to take profit at 1.3378 which is 150 points higher exercise price. In this treatment, you run the risk by 50 points to win 150 points, which means that the rate of return to risk in this trade is a risky one for each part of a three-part return. Which means in another you must believe your expectations once at least in every three times so keep trading the winner.

The nominal value of the transaction is $ 132.280 (100,000 at 1.3228). The proportion of the required margin is 1% of the total value of which is equal to $ 1,322.80 ($ 132.280 * 0.01).

If ratified by expectations the euro rose against the dollar and the price reached to stop order at 1.3378. The trading center is closed and then the total profit on this trade is $ 1,500, where each point is equal to $ 10.