Learn Forex
we know that knowledge is power. We understand the importance of educating our players on Forex trading on the forex market. Our goal is to allow operators to trade currencies with confidence, while at the same time, understanding the main features of the foreign exchange market. This includes both the risks and rewards.
A transaction on the foreign exchange market is simple and the process is similar to other markets. The forex market is based on the business model of buying and selling. Forex trading is very simple: traders buy and sell currencies against each other, and speculate on the exchange rate is constantly changing. Unlike the stock market, a trader does not pay any commission for trade.Instead, the Forex broker is compensated by the difference in buy and sell (commonly called the spread).
Improve your knowledge on foreign exchange transactions
A transaction on the foreign exchange market is simple and the process is similar to other markets. The forex market is based on the business model of buying and selling. Forex trading is very simple: traders buy and sell currencies against each other, and speculate on the exchange rate is constantly changing. Unlike the stock market, a trader does not pay any commission for trade.Instead, the Forex broker is compensated by the difference in buy and sell (commonly called the spread).
Improve your knowledge on foreign exchange transactions
Buy and Sell (B / S) for the Forex market
The model of buying and selling process is easy for beginners merchant. There is a simple principle to buy and sell - you buy a currency pair, while selling another. For each currency pair, as usual, the price of the EUR / USD, there are two prices. It is the offer price (the price at which the purchase on the market) and the ask price (the price at which the market sells). The difference between them is designated as the spread.
When an order, you must first choose a quantity (how much you want to buy or sell). For example, if you make a decision to sell 100,000 EUR / USD. then clicking proclamations were actively opening a market position, and you will automatically receive a notification on your trading platform. You can also do the opposite of your initial operation by closing your position on the foreign exchange market (buying / selling 100,000 dollars / euros in this case). Read more orders.
Another important aspect to consider is that exchange rates are influenced to buy and sell a variety of different factors. There may be differences in exchange rates, global economic trends, political events, weather, even in extreme situations like war or terrorism.These are often called basic. Read other fundamental factors that affect Forex trading.
MARGINS FOREX TRADING
The margin is the amount of collateral required by traders to keep their open positions on the foreign exchange market. Unlike stocks and commodities, there is no margin calls in forex. If an account is less than the required margin requirement, all open positions are automatically closed. For example, if a trader buys a lot of mini fx the EUR / USD at 1.50 to 1:100 leverage, then they will need $ 150 in your margin account to hold this position open. Read more weight and margins.
QUOTE FOREX currency system
In the forex market, currencies are traded in pairs, for example, GBP / USD and USD / JPY. The first currency in the pair is called the "base currency" and the second is called "money." The basis for the purchase and sale is the "base currency". For example, if a trader wants to buy the EUR / USD, then he will buy euros and sell dollars. That means it expects the euro to gain against the dollar.Each operation on the FX market is a double layer, and made with a purchase / sale.
FX ROLL
If an owner of a trader fx trading on the foreign exchange spot market overnight, this position is renewed. In most cases, is likely to pay either a fee or receive a rollover. The proportion of turnover is determined by the differential between interest rates priced in both currencies that are traded in currency pairs. Commercial operation is finished after two days. If the positions are held overnight, then trading forex broker forex closes at the end of the day (05:00 EST) and new jobs are open at once.
For example, USD / JPY is trading at 1.40, the interest rate is 3.5% JPY and USD interest rate is 1.5%. The differentiation is 0.60 pip pip. Therefore, if you had to JPY long and short of dollars, the trade would be found at 0.60 pips higher than the previous one.The sample was calculated by completing the following calculation: (basic interest interest and currency exchange cons ÷) x (day / day) × (market rate).
LEVER on the FOREX market
Leverage allows forex traders to control more money in a trade than they have deposited into your trading account. This is where the real power lies in forex trading. Therefore, the negotiation with the system to good use can work in your favor, and bring great benefits.
Leverage 1:100, the operator needs a currency unit for the control of 100 units in the foreign exchange market. Therefore, it would be only 100 units to control a mini lot (10K) in the foreign exchange market, or 1000 units control a standard lot (100K). Read more weight.
FOREX TRADING HOURS
The FX market is based on "spot transactions". The reason is that trade takes place 24 hours a day, 5 days a week. Trading on the forex market never stops, as well as weekends and holidays. This includes Christmas and New Year, when the foreign exchange market closes early.
