Currency Trade Pro

Pairs that do not contain the USD (EUR / JPY, GBP / CHF, AUD / JPY, EUR / GBP and GBP / JPY) How to calculate profit / loss are as follows:

Profit = (Selling Price – Purchase Price) x Rate Base Currency Current / Rate Pair x contract size x lot

Example:
Sell one standard lot of EUR / GBP at 0.6760 price (EUR / USD is the base currency of EUR / GBP, because the front of the EUR / GBP is the Base Currency)

Buy a standard lot of EUR / GBP at 0.6750 price Rate EUR / USD: 1.1840
Profit = (0.6760 0.6750) x 1.1840 / 0.6750 x 100 000
Profit = $ 175.4

Margins and Leverage
The term margin leverage in the forex margin trading means that if you want to make trades for $ 10,000, you do not have to provide $ 10,000 but $ 100 is enough to provide meaningful leverage 1:100 as a guarantee fund to your broker. Leverage the value of this variety are usually in a ratio of 1:50, 1:100, and 1:200

So like you have the cash $ 1,000 in broker who has the leverage is 1:100. This means you can trade with the amount to nearly $ 100,000 (or almost 100 times of your capital). This also means that to use a $ 100,000 contract size.

The advantage of the leverage is with a smaller capital you can speculate with a total contract size / lot the same as if you did not use leverage. Or it can be said, with an equal capital, you can use the contract size is greater than not using the leverage. So with the same capital, you have a chance to get profit per pip is greater.

Technical analysis is the analysis of movement based on a mathematical calculation (formulas, graphs, charts, etc.). By combining the movement of an instrument with specific mathematical formulas. To present a picture or predictions of the future. Now that you have to be careful and watch was the words, images / predictions, so accuracy is not 100%. The amount of accuracy is at the level of art and distinct from each trader. The more you diligently honed formula, evaluating, combining, etc. will become more precise.

The goal of traders using technical analysis, among other things:

1. Volume of transactions
2. Trends
3. Levels of psychological (support and resistance)
4. Period of time that occurred.

This technical indicator created by many technical analysts, and if the collected amount can reach 250 more, with a variety of purposes. And with the level of complexity is different. But little input you do not need to use all (because it was impossible too), just use whichever you really understand it, a little better and simpler, but you master and know where the strengths and weaknesses.

Indicators apply the principle of mathematical and statistical sciences. So the question, well I must be dong statistical science? The answer is not necessary, the application program forex, most of them have been able to provide a direct indicator that you apply in the charts. For those of you who have advanced (forex & statistics) you can also create an indicator based on your tastes. Although this congenital indicator can already be directly applied and used on the graph, you still need to study the usefulness and function of the indicator. Read the rest of this entry »

Forex stands for Foreign Exchange, or the exchange of currency values differ Cash, activity of this change often unconscious or not done by everyone in the world. Examples of when you travel abroad then you must exchange your currency with the currency of your destination country, or another example of the result of export-import activities, the need for banking institutions, market needs, etc. Foreign currency trading market is the world’s largest market, the turnover per day, equivalent to or more than 1.7 trillion USD. The value of trade that continues to rotate, three-fold greater than the combined aggregate amount of equity markets and treasury.It;s not like other financial markets, foreign currency market (Forex) has no physical form and there is no central controller, these markets operate through a global network of inter- corporate and individual bank conducting currency exchange transactions between countries. Transactions take place across parts of the world which covers 5 major continents and because of the time difference of about 12/13 at the end of the continent to make foreign currency trading market (forex) lasted for nearly 24hours.

The advantages of forex trading
. FOR THE LARGEST NUMBER OF PARTICIPANTS AND NUMBER OF TRANSACTIONS.

· LIQUIDITY AND EXECUTION OF HIGH instantly

· Operate MARKET DURING THE 24 HOURS.

· Not NO TIME LIMIT FOR with stand POSITION.

· TRANSACTIONS 2 (TWO) WAY.

CHANCE 2 DIRECTION
In Forex transactions, you will get the opportunity to achieve a profit / gain in 2-way trade, which is when prices rise or fall. Example: USD / JPY = 103.45, estimated Japanese Yen currency will weaken against the USD $, the action / transaction that you have to do is to buy (BUY). If the estimated Japanese Yen strengthened against the USD $ then the action / transaction that you have to do is sell (SELL) uptrend, the price moves up (BUY or LONG) downtrend, the price moves down (SELL SHORT aatu).

Derivative TRADE WITH MARGIN TRADING
Margin trading is trading that is done by general loan.As capital value of his contract for 1 lot is equal to U.S. 100,000, by using what is meant by margin trading, the contract is valued at 100K is only paid 1% to 10% only, which is caused by usage level of leverage (leverage).

Some Forex traders who expected great benefits and income are sometimes stumbled upon few things that made their business collapsed. Below are some of the reasons why:

1. The wrong initial intention in doing business Forex which resulted in speculations and careless predictions.

2. Did not choose the right company to facilitate the Forex trading. The company gets the profits but oftentimes, the traders don’t. Moreover, if the company does not have adequate security, hackers are threatening everywhere.

3. Did not precisely determine the equity (capital) and the magnitude of the volume / lot when someone makes an open position BUY / SELL. (Lack of capital and risk management)

4. Lack of technical analysis (reading the price trend) and indicator, especially if the trader is not provided with adequate indicators.

5. Lack of fundamental analysis (addressing the fundamental news), which can affect the market price moves.

6. The trading system was not managed well.

7. Took the wrong step in determining the type of trading.

8. The trader’s psychology was not put in good system, emerged after profit greedy nature, fear, hesitation or revenge after the loss. Extraordinary psychological factors influence trading.

9. Did not choose the right time to enter the market in determining the Order BUY / SELL.

So for those of you who experienced failure, let us evaluate … you really deserve to be a reliable trader. Therefore, you should never give up to continue to learn and if you have obtained PROFIT, stay humble and simple.

Many lay people are still confused about how to start the first time in forex trading business, little tips from me how to start trading forex:

1. Knowing the broker to join, such as www.marketiva.com, www.gainscope.com, www.avafx.com, www.easy-forex.com, www.fxcm.com and many online forex brokers on the internet.

2. After learning about the broker should now have internet accounts as at www.e-gold.com, www.e-bullion.com, www.libertyreserve.com

3. After that you can exchange your money in order to be used in forex trading to a trusted moneychanger like www.indochanger.com, www.sentraegold.com and www.tukarduid.com everything fast and secure, I’ve used this facility since 2006

4. You can learn on indicators, charts or things – things related to forex in www.belajarforex.com and www.babypips.com Read the rest of this entry »