Currency Trade Pro

Archive for the ‘Forex Knowledge’ Category

1. Forex Trading moves continue for 24 hours each weekday (Monday through Friday) rotates from New Zealand & Australian markets that took place at 4 a.m. to 14:00 pm, continued into Asian markets, namely Japan and Singapore that took place at 07.00 – 16.00, to European markets German & English are held at 2:00 p.m. to 10:00 p.m. local time, up to the American market which took place at 7:30 p.m. to 4:00 pm

2. Trade in the Asian session usually not too shows the movement of prices (flat). Prices usually start to move when entering the European session (14:00 am) and peak movement usually occurs at the time of the American session opened at 19.30 pm.

3. Economic news during the American session is opened (U.S. Open) are usually highly awaited market players / traders. Due to price movements can be 100-200 points. Always follow the economic news and analysis on world financial markets like the web site or http://www.bloomberg.com http://www.forexnews.com. It is up for you to choose.

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Calculating Profit / Loss (Gain / Loss)
The movement of units / lowest price in the forex is calculated in units of points / pips. The value of each point will vary according to type of currency pairs.

The total contract size used is in units of lots, namely:
- Standard lot ($ 100,000)
- Mini lot ($ 10,000)
- Micro lot ($ 1,000)

For Direct Rates Pair
Direct rates USD pair is the pair with a suffix ( EUR / USD, GBP / USD, AUD / USD, and NZD / USD), the way of calculation:

Profit / loss = (Selling Price – Purchase Price) x contract size x lot

Example:
Buy four standard lot of EUR / USD 1.2500 and Sell four standard lot of EUR / USD 1.2570
Profit = (1.2570 – 1.2500) x 100 000 x 4
Profit = $ 2,800

Sell one standard lot GBP / USD 2.0010, Buy one standard lot GBP / USD 2.0000
Profit = (1.2010 – 1.2000) x 100 000 x 1
Profit = $ 100

There are easy ways to pair the calculation of which end USD:
Gain one point for a standard lot (100,000) is $ 10.
Gain one point for a mini lot (10,000) is $ 1
Gain one point for a micro lot (1000) is $ 0.1

For Indirect Rates Pair
Indirect rates are pairs with USD as the leading pair (EUR / JPY, USD / CHF, and USD / CAD), how to calculate profit / loss are as follows: Profit / loss = (Selling Price and Purchase Price) / Price x contract size Liquidation x lot
Example:

Buy one standard lot of USD / JPY 110.00
Sell one standard lot of USD / JPY 110.05
Profit = (110.05 – 110.00) / 110.05 x 100 000 x 1 = $ 45.43