A Brief Introduction to forex Trading

Actually the existence of forex trading has long been available since the discovery of a technique to convert a country's currency into another country's currency. However, the new institutionally there after the establishment of the arbitration agency contracts (futures). An example is the IMM (International Money Market, founded in 1972) which is a division of the CME (Chicago Mercantile Exchange-specific product handling perishable commodities). Other examples are LIFFE (London International Financial Futures Exchange), TIFFE (Tokyo International Financial Futures Exchange).


The velocity of money that occurs in the forex market reach U.S. $ 5 trillion per day (survey BIS-Bank for International Settlements, in Setember 2008). This amount is 40 x greater than the velocity of money if the other futures exchanges like any commodity or stock markets in every developed country stock exchanges anywhere! This means that the big trading volume, this market is very liquid (liquid), and control of trade can not be held by only a few parties who have a large capital. These currency movements completely dependent on the market. There are many big and small players in the forex trading, but none of them are able to control the movement of foreign exchange rates.


Currency is often traded currencies of developed countries like the U.S. dollar (USD), Japanese Yen (JPY), Swiss Franc (CHF), British Pound Sterling (GBP), Australian Dollar (AUD) and Euros (EUR). All of these currencies are traded in pairs (called a pair), for example EUR / GBP, CHF / JPY and so on.

Then from where I benefit from this investment? In simple, the benefits of this investment from the difference in value when we buy and sell the currency back to the country concerned. For example, in April Amir purchase Dollars USD exchange rate. 8500, - per dollar as much as U.S. $ 1000. So at the time of purchase this currency Amir spending of Rp. 8500, - x 1000 = Rp 8,500,000, - Then in May, the dollar exchange rate strengthened against the rupiah to Rp. 9500, - per dollar so that Amir net profit gain when he sold the dollar return is for: (9500-8500) x 1000 = Rp. 1.000.000, - Easy and simple is not it? And because the average time it takes to buy and sell back the currency in question is usually no more than one month, then the forex trading are classified as investments with short-term.

Learning Forex Basics

To know Point (Pip) and Contract Size (Lot)

Point (pip) is the smallest unit price movements in the forex. One point (pip) for the pair GBP / USD is 0.0001, while one point for the pair USD / JPY is 0.01. Example: Pair GBP / USD, the movement of 1.8500 to 1.8550 is 50 points. Value per point (pip) depends on the number of contract size (lot) and the currency used.

Contract Size (LOT) is the smallest quantity of forex trading. In general, contract size (lot) is often used is the Standard Lot, Mini Lot and Micro Lot Standard Lot is $ 100,000, Mini Lot is $ 10,000 and Micro Lot is $ 1000. If broker forex supports the Standard and Mini Lot, it means you can trade with a number of multiples of 100,000 and 10,000. For example: $ 30,000, $ 120,000, and others.

Quote / rate currency

Quote forex consists of the price of 2 prices, ie lower price (bid) and a higher price (Ask / Offer).

Bid is the price at which the broker forex (dealer) to buy from you. While Ask / Offer is the price at which the broker forex (dealer) will sell to you. Bid is always lower than the Ask. The difference in price Bid and Ask is the Spread. The smaller the spread is the dealer forex more profitable trader.

Example: Quote EUR / USD Bid / Ask: 1.2293/96. Means that the selling price to your broker 1.2293 and the purchase price of the broker is 1.2296. spreads 1.2296-1.2293 is 3 points.

Please note:

• When you open a position Buy (Long), it means you open the position with the price ask, and then will be closed (close / liquid and including stop loss and target profit) use the price bid.

• When you open a position Sell (Short), means that you open the position with the price bid, and then will be closed (close / liquid and including stop loss and target profit) use the price ask.

What is the position of Long and Short?

Position LONG or open BUY (Buy) is a position in which a trader buys a currency at a specified price and aims to sell later at higher prices. So investors are able to profit from market to rise (graph pair up).

Suppose you buy in a position 1.1500 and then sold at 1.1525 then you will benefit as many as 25 points / pips.

LONG or open BUY is expecting the price of a currency pair (pair) NAIK to profit (graph pair up)

Example: Long (BUY) EUR / USD then you expect the graph EUR / USD is UP or Euro strengthened against the USD. Rising price of a pair can you interpret the currency in FRONT pair is strengthened against currencies in the back pair is.

Example: Graph the price Pair EUR / USD NAIK it means Euro strengthened against the USD. Prices used as OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID). To ease Position LONG often abbreviated BUY (buy)

Position SHORT or open-SELL (Sell) is the position in which a trader sells a currency at a certain price and aims to buy later at a lower price. So investors are to benefit from the market down (graph pair down).

SHORT or open SELL is expecting the price of a currency pair (pair) DOWN for profit.

Example: Short (SELL) EUR / USD then you expect the graph EUR / USD is DOWN or Euro weakening against the USD. The fall in the price of a pair can you interpret the currency in FRONT pair is weakening against foreign currencies on the back pair is.

Example: Graph the price Pair EUR / USD is DOWN then it means Euro weakening against the USD. Prices used as OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK). For ease of Position SHORT often abbreviated SELL (sell).

High, Low, Open, Close

High: It is the highest price that period from the beginning of the period (open) until the end of the period (close).

Low: It is the lowest price period from the early period (open) until the end of the period (close).

Open: It is the price of the opening period.

Close: It is the closing price of that period

What is a Market Order?

Market orders mean you'll buy price "ask" that apply on the spot, or sell at a price "bid" prevailing at that time. Suppose you'd bought a pair EUR / USD, the market was showing 1.2934/1.2938. This means your broker would buy the EUR / USD from you at a price of 1.2934 and sell to you for $ 1.2938.

Stop Order and Limit Order (Pending Order)

Pending orders are orders automatically to open the position of Long / Short only when the price of your order / message is reached. If the price of your order is not reached, then the pending order will still be active and will wait until the price of your order untouched. Pending orders can be divided into 2 is Pending Order Stop and Pending Order Limit.

If you just want to buy in the ON current prices, use the Stop Order Buy. And if you just want to sell at BELOW the current price, use the Stop Order Sell.

If you just want to buy in the DOWN current prices, use the Limit Order Buy. And if you just want to sell in the ON current prices, use the Limit Order Sell.

Example: Price ASK now is 2.0000 and you just want to buy (LONG) if the price moves to 2.0050 then you can use a Stop Order Buy. (Remember the open buy / Long price used is the price of ASK!)

Example: The price BID now is 2.0000 and you just want to sell (SHORT) if the price moves to 1.9950 then you can use a Stop Order Sell. (Remember the open sell / Short price used is the price BID!)

Example: Price ASK now is 2.0000 and you just want to buy (LONG) if the price moves to 1.9950 then you can use the Limit Order Buy. (Remember the open buy / Long price used is the price of ASK!)

Example: The price BID now is 2.0000 and you just want to sell (SHORT) if the price moves to 2.0050 then you can use the Limit Order Sell. (Remember the open sell / Short price used is the price BID!)

Calculating Profit / Loss (Profit / Loss)

Price movements smallest measured in units of points / pips. The value of each point will vary according to type of currency pairs (pair), the contract size is used. Contract size is usually specified in units of lots, the Standard lot (100,000), Mini lot (10,000), or Micro lot (1000).

For currencies that ends in ... / USD for example (EUR / USD, GBP / USD, and AUD / USD) how to calculate profit / loss are as follows:

(Selling Price - Buying Price) x contract size x number of lots = Profit / Loss

Example:

Buy 3 standard lot EUR / USD 1.2000

Sell (liquid) 3 lot EUR / USD 1.2010

Profit = (1.2010 - 1.2000) x 100.000 x 3 = $ 3002.

Sell 1 standard lot GBP / USD 2.0001

Buy (liquid) 1 lot GBP / USD 2.0000

Profit = (1.2001 - 1.2000) x 100.000 x 1 = $ 10

From the conclusions above, it means a profit of 1 point for standard lot (100K) currency ends ... / USD profit is $ 10. The value of 1 point for 1 lot of mini (10K) is $ 1 and for micro lots (1K) per point is worth $ 0.1

For currency beginning CAD / ... for example (USD / JPY and USD / CHF) how to calculate profit / loss are as follows:

[(Sales Price - Purchase price) / Price Liquidation] x contract size x number of lots = Profit / Loss

Example:

Buy 1 standard lot USD / JPY 110.00

Sell (liquid) 1 lot USD / JPY 110.01

Profit = [(110.01 - 110.00) / 110.01] x 100.000 x 1 = $ 9.09

For the currency mix of the instance (EUR / JPY) how to calculate profit / loss are as follows:

[(Sales Price - Purchase price) / price Closing USD / JPY] x contract size x number of lots = Profit / Loss

Example:

Buy 1 standard lot EUR / JPY 162.70

Sell (liquid) 1 lot of EUR / JPY 162.71

Closing price of USD / JPY is 118.10

Profit = [(162.71 - 162.70) / 118.10] x 100.000 x 1 = $ 8.47

Margin and Leverage

The term leverage (factor lever, usually in a ratio of 1:50, 1:100, 1:250, or 1:500) in the forex margin trading means that if you want to trading for $ 10,000, you do not have to provide $ 10,000 but it was enough, providing margin $ 100 ( leverage 1:100) as guarantee funds to your broker.

So the margin could mean a guarantee of detained temporarily by the broker when you make a trade. Margin will be refunded to your account after you close / liquid position you open. Suppose you have the cash $ 1000 in broker who has Leverage 1:100. This means you can trade with any amount up to approximately $ 100,000 (or nearly 100X as much capital you). This also means that to use the contract size $ 100,000 you'll need a 1% margin of $ 1000.Contoh else: You have a capital $ 500 and your broker have the leverage 1:100, then if you want to buy using 1 lot of mini (10,000) then the margin on hold is 1% of the total contract sizenya (10,000) ie (1% x 10,000) or use a margin of $ 100. This means that investment for you to be detained temporarily and used as collateral / margin by the brokers is $ 100, the remaining $ 400 is used to hold losses you. And if one day you have to liquidate these positions so the margin $ 100 this will be returned to you. The advantage of the leverage is with capital less you can trade with a number of contract size / lot the same as if you did not use leverage. Or it can be said, with capital as much, you can use the contract size is greater than not using the leverage. So with the capital the same, you have a chance to get profit per pip is greater.

Take Profit and Stop Loss

Take profit is order to liquidate a position automatically at a certain price when the trader has obtained a number of profit.

If you Open Buy / Long the target is located at THE price of your open positions Open Buy / Long. (Remember! Open Buy / Long using price KSA while Target or Stop Loss prices BID)

Example: Buy EUR / USD 1.2000, Target Profit 1.2050 (to target 50 points profit)

If you Open Sell / Short then the target is located in BELOW the price you open a position Open Sell / Short. (Remember! Open Sell / Short uses BID price, while Target or Stop Loss prices ASK)

Example: Sell EUR / USD 1.2050, Target Profit 1.2000 (to target 50 points profit)

Stop Loss is the orders to liquidate a position automatically at a certain price to limit losses that might occur if the market moves against the trader's position.

If you Open Buy / Long then the stop loss is at BELOW the price you open a position Open Buy / Long. (Remember! Open Buy / Long using price KSA while Target or Stop Loss prices BID)

For example: Buy EUR / USD 1.2050, Stop Loss 1.2000 (for stop loss 50 points loss)

If you Open Sell / Short then the stop loss is at THE price of your open positions Open Sell / Short. (Remember! Open Sell / Short uses BID price, while Target or Stop Loss prices ASK)

Example: Sell EUR / USD 1.2000, Stop Loss 1.2050 (for stop loss 50 points loss)

Function Leverage Against Security Margin

For example, deposit the initial capital you for $ 300. If you open 1 position trading mini-lots (10000) requires margin: 10000 (mini lot) x 0002 (leverage 1:500) = $ 20. So capital is being held temporarily as collateral (margin) to open a 1 mini lot GBP / USD is $ 20. So the rest of the margin you to stop loss is: $ 300 - $ 20 = $ 280.

Profit from the currency GBP / USD for mini lot (10000) is $ 1 per point (pip). So the example above (the margin remains is $ 280) can be calculated force you to stop loss is $ 280 (margin left) divided by profit per point (pip) = 1 ie: 280 / 1 = 280 points. So the strength to withstand loss maximum (before the margin call) is 280 points with the assumption that the currency you use is the GBP / USD with a profit of $ 1/point.

Compare with leverage 1:100, which means you must provide a margin of 10000 x 0.01, ie: $ 100 to open 1 position mini lot (10000) currency GBP / USD. Margin was left to hold the loss is 300 to 100 = 200. Profit per point GBP / USD mini lot is $ 1. So that your strength to withstand losses is 200 / 1 = 200 points only.

Conclusion: Leverage function to double the value of your profits with the initial capital is relatively small, while increasing the power you hold loss.

Margin Call

Margin call means the liquidation of "forced" by the broker because your account does not have sufficient funds to cover / cover your position is lost.

For example, deposit the initial capital you for $ 300. If you open 1 position trading mini-lots (10000) requires margin: 10000 (mini lot) x 0002 (leverage 1:500) = $ 20. So capital is being held temporarily as collateral (margin) to open a 1 mini lot GBP / USD is $ 20. So the rest of the margin you to stop loss is: $ 300 - $ 20 = $ 280.

When the floating loss (loss) you reach $ 280 then there is no margin / money left over to keep losses (available margin = 0), so that one position will be closed automatically by the broker (margin of $ 20 will be returned so that margin you grow $ 20)

How to deposit (deposit) on Marketiva:

How to deposit (deposit) on Marketiva:

1. Go to the Website or in www.goldmediator.com www.indochanger.com, and login with your user ID, and then read the instructions on how to deposit it (in the menu BUY), or can call the phone number Indochanger companies (listed on website). If you wish to deposit (buy e-bullion) note the exchange rates in Indochanger bought it or at the goldmediator.
2. After that the transfer was the amount of money you want to deposit them into bank accounts Indochanger (can use BCA, Mandiri, Permata, BNI, Lippo). And after the transfer, then confirm your receipt of transfer to the company and their numbers Indochanger e-bullion account you. (can confirm by logging in Indochanger websites, e-mail, fax or can call the company telephone number Indochanger it).
3. Once confirmed, then in a matter of hours (at least 1x24-hour working days), tand transferred to your e-bullion account you (going out to the USDollar exchange rate automatically).
4. After e-bullion account you are charged according to the amount you transfer, then you can start to deposit into Marketiva by logging into your account through Streamster Software (in the menu center account), then there click on the Deposit Funds menu.
5. Deposit Funds in the menu, choose the menu Deposits By E-Bullion, then you input amount of money you want to enter the (deposit), then after that you will automatically diswitch to e-bullion account to input your password and processed. After a successful deposit, the balance in your account will be listed in the marketiva amount of money you deposit it (in the Portfolio USD Default).
6. If you want to use your deposit to traded, then go back to the center account menu and then click on Funds Transfer menu, then select From his desk in default and to the Live Trading Desk him, and enter the sum of money you want to use (transfer to the Live Trading), then confirm by clicking the button.
   
7. After confirmed, then the money from the Default CAD Portfolio will directly go to the Live Trading Portfolio USD you, and you can start trading with money.

How to withdrawal (withdrawal) on Marketiva:

1. Log in marketiva center account click here.
2. On the menu center account, the Funds Transfer is click menu.
   
3. On the menu center athe Funds Transfer menu, choose her the Desk From and To Live Trading Desk in default, and enter the sum of money you want to appeal, then confirm by clicking the button. If the above process has been successful, then the money from Live Trading Portfolio will be moved to the Portfolio Default, (Note: The amount of money to be Withdrawn should be listed in the Portfolio Default, which had to be transferred first from the Live desk trading above manner. Money that could be moved only the money from the Live Trading Desk and can not be money from the Virtual Trading Desk). ccount, the Funds Transfer is click menu.
   
4. Back to the Account Center menu, and then the menu click menu Withdraw Funds
5. Then choose a withdrawal by E-Bullion (for withdrawal / withdraw to e-bullion are no fees of U.S. $ 7 for first and free for the next)
6. Enter your e-bullion account you are in the "Recipient Account No.." and also enter the amount of money you want to pull plus the cost of withdrawal (+ $ 7 it). Or if you want to withdraw all your money.
7. After that then you will be asked about the confirmation of whether it is true, and if it is OK, then your money will be processed and transferred to your e-bullion account you (at least 1x24-hour working day).
8. Once the money into e-bullion account you, then you can transfer them to the rupiah currency in your bank in Indonesia with through e-bullion exchanger to the rupiah is at or in Indochanger Goldmediator.com. The way is: you are logged in www.indochanger.com www.goldmediator.com or in accordance with your ID, then click the SELL menu. After that read and follow the instructions. (note also the selling price of the exchange rate)
9. After the confirmation process and completed, then the money from e-bullion will be directly transferred into your bank account in Indonesia. (Note: If you want to be transferred in the form of U.S. Dollar or any other, then you can take advantage of international exchanger services, such as from or from www.londongoldexchanger.com www.autocambist.com, but do not forget to take into account exchange rates and costs.

What the pros Online Forex Trading (Valas Online) compared with the traditional trading (offline)?

• Many online brokers provide commission-free facilities, whereas offline brokers typically charge $ 50 put on each settlement / open to close positions, you can directly monitor your open positions and buy or sell decisions 100% on your hands. Good for when you want to close the position, how much you'd like to play, plug in what position, etc.

• you can learn forex practice directly without using a broker service that is often less responsible for the profit / loss of clients (as though win or lose , in the end your broker will still get a commission), you can use a flexible number of lots (helpful for you who have limited capital), Spread (difference between selling price and buying) small (the smaller the better) so you probably higher profit.
• Distance message position (pending orders) are Relatively small (10 points) and closed position usually only 1-5 points only. Compare with offline broker who must be a minimum of pending orders from running 30 points and closed positions at least 10 points in order to break even.
• You to trade directly with service providers (brokerage) without an intermediary (middleman, often in Indonesia misconstrued as a broker), you'll get a very valuable experience in how to practice and practice trading by opening a free demo account and use a lot of trading software available on
• Available internet. many indicators, analysis, and trading software is very comprehensive on the Internet.

What are the advantages Forex (Valas) Online compared to other investments:

• Forex has a 2 way opportunities, meaning you can make a profit 2-way, when the market rises or even when the market falls. This does not apply to other types of investment (opportunity 1 way), for example shares.

• Forex Trading Opportunities for 24 hours a day 5 days a week, very high liquidity, meaning you can make buying and selling of foreign exchange instantly at any time without having to wait whether there is a buyer or seller.

• Existence Leverage function (the leverage / factor), which means that with Relatively small capital you can generate far greater returns. Example: Without leverage, you will only get $ 0.01/point with capital of $ 100. But with 1:100 leverage, you can generate $ 1/point with the same capital ($ 100).

• There are many brokers forex (foreign exchange) online which provides commission.

• Free facilities, the minimum capital is Relatively small, transaction costs (spread) a small, free flowers (without usury, kosher for Muslims), automated trading facilities (robots).

Why Forex (Virtual) Boring?

Often we think that playing virtual forex trading that saturate and boring, what's the problem? we gain a lot of money but can not beneran especially loss ... immediately close all of our platforms and go straight to bed or better, why waste - waste of time without getting results. Indeed we know the forex early this heart felt passionate - passionate and even forgot everything, which in mind was just curious and curiosity continues. From experience - the experience of us have survived and never gave up, but there are also lazy and would eventually teach him not to repeat it again because it is difficult or the many other reasons.


Forex Trading Is it difficult and boring?

From the two sides were also said that forex trading is fun and there is also a saying that forex trading is very difficult. Which is correct?

Forex trading is difficult: because that is in our thoughts and think only of money to get rich quickly without having to learn and work hard. Without learning and hard work just the same as gambling because only think lucky - miss it. Suppose we gamble and lost, what we feel? surely regret, boredom, anger, resentment and so on. It affects the fortunes of our trading but should be in the underlying science and our knowledge about forex. So forex trading is difficult and boring if we regard it as gambling.

Forex trading is easy and fun: as long as we want to learn, patience and hard work. Because the forex game that takes patience to learn and to get the results we expect and it was not as easy as we imagine that we really - really had to work hard. Just enjoy what we have gained during the play forex trading, either loss or profit think of it as our lesson.

Virtual forex gives us a place to learn the best make use of - well before you invest. Do not invest your money before you find the system and the right way to trade. Use the free money $ 5 to test the mental and our trading psychology for playing with a live virtual Forex is a very different impact for our trading mentality.

Understanding Forex (Foreign Exchange)

Forex Definition

Foreign Exchange (Forex) market is trading in foreign currency exchange two foreign currencies are different. Forex trading is the most liquid market and the largest in the world where large volume of trading reached 2 trillion U.S. Dollars per day.

Forex market has no office or physical location, active investment instruments 24 hours a day and 5 days a week so that forex trading can be done online whenever and wherever you are. This trade took place globally between the financial centers of the world by involving major banks of the world as the main executor of this transaction.

The Currency Trading

Not all currencies are traded here, which applies only currency that the country has fundamentally advanced the volume of exports and imports are stable. Such as currency USD (U.S. Dollar), EUR (Euro), GBP (British Pounds Sterling), Yen (Japan), AUD (Australian Dollar), CHF (Swiss Franc). Examples of traded EUR / USD, GBP / USD, USD / JPY, USD / CHF etc..