Trading Forex / forex online is a real online business
What is the forex or foreign exchange it?
Forex or foreign exchange (foreign exchange market) or shorted the stock exchange is a type of trade or the trade transactions of a country currency against the currencies of other countries that involve money markets in the world for 24 hours continuously.
Rotating movement of the foreign exchange market from New Zealand and Australia market which took place at 05:00 to 14:00 pm, continued into the Asian markets of Japan, Singapore, and Hong Kong which took place at 07:00 to 16:00 pm, to European markets, namely Germany and the UK which took place at 13.00 -22.00 pm, up to the U.S. market which took place at 20:30 to 10:30 pm. In its historical development, the central bank's countries with foreign exchange reserves that can be defeated by even the largest foreign exchange market forces are free.
Given the level of liquidity and accelerating the movement of high prices, foreign exchange (forex) also has become the most popular alternative because the ROI (Return On Investment, or the return value of the investments we have already planted) and profit to be gained could exceed the average trading on generally (usually the average return is about more than 5% - 10% per month, though it could reach more than 100% per month for professional traders).
As a result of such rapid movements, the foreign exchange risk is also high if it does not have sufficient knowledge and financial management arrangements as well.
In exchange forex (foreign exchange) this one can buy or sell currencies are traded. Objective is to gain profit or advantage from the position of the transaction you are doing. Stock exchange is known in terms of Lot and Pip. 1 Lot value is $ 1000 and 1 pip value is $ 10. While the value of the dollar in the foreign exchange market is different from the value of the dollar as we know it in banks. Value of the dollar in the forex market is very varied, Rp 6000 / USD 8000 and USD 10,000 (in the conditions fixed rate). Transactions in foreign currencies can be done by means of two-way in taking advantage. A person can buy in advance (open buy), then covered with a sell (sell) or otherwise, to sell first, then covered with a purchase
Operation of trade forex
Fortunately VS Loss
If you happen to spot trade in goods, which means that if we pay today we will get the goods today, the term cash and carry, then forex trading is the trading of futures (future), in which the payment occurs today and place of delivery at a later date, according to the agreement. Difference between the payment and delivery of goods is what causes the difference in price, and a source of profits from this forex trading
For example, we bought U.S. dollars at a price of Rp. 9000 on this day for the submission of one month to come, meaning that we only accept U.S. dollars that we buy now a month to come. Well, what happens a month from now? Of course the U.S. dollar value may change from the value on the day of the transaction, could increase, decrease or remain (if such cows could perhaps grow fat, skinny or stay a month later). If the price of one U.S. dollar a month later to Rp. 8.000, then we will lose Rp.1.000, because we bought at a price of Rp. 9.000, which we are now able to Rp. 8.000. Conversely, if a month later the price of one U.S. dollar to Rp. 10.000, then we will benefit from Rp. 1000
Liquidation
In forex trading the futures trade and, gains and losses that should not happen, as long as we do not execute it. This is different from that embraces forward trading in which the execution of delivery must be made at the agreed time (in our example one month). Execution is the official term used in forex trading, liquidation, may at any time. We just continue our example, for instance, after one month we find the price of one U.S. dollar to Rp. 8000, means we will lose Rp. 1000 if we are liquidated according to the agreement. Therefore, we can delay, perhaps the next few days the U.S. dollar price will rise again. If a week later, we estimate the price is U.S. dollar rose to Rp. 10 000 we can melikuidasinya, and pocket the profit of Rp. 1000
Currencies
In forex trading, the dollar, the U.S. often acts as a currency, other currencies are acting as the goods. Since we are in Indonesia, the rupiah will always be money. It could even be three times the transaction (triangular arbitrage). For example, we want to transact buy Yen (acting as an item) with the U.S. dollar (to act as money), then the transaction is our first buy U.S. dollars. After we got the dollars used to buy yen. Finally after a Yen, we must use it to buy dollars when we will use our money in Indonesia.
The Traded Currencies
In general, currencies are traded in a brokerage firm is the currency of the industrialized countries are highly developed or are referred to as a strong currency (hard currency). Because these currencies are very volatile movements, allowing the trade.
List of Currencies Traded in Forex Trading
Code Official Name
USD U.S. Dollar
JPY Japanese Yen
CHF Swiss Franc
GBP Pounds Sterling
EUR Euro
AUD Australian Dollar
How to Read the exchange rate
Read rate is actually very easy, by knowing which currencies are acting as the goods. Currency that acts as these items are considered bemilai 1 for each value of the currency that acts as money. Example:
For GBP and EUR:
GBP / USD l, 5930/33
Meaning:
Selling price of EUR 1 = USD 1.5930
The purchase price of EUR 1 = USD 1.5933
EUR / USD 1.3945 / 48
Meaning:
Selling price of EUR 1 = USD 1.3945
The purchase price of EUR 1 = USD 1.3948
Thus, GBP and EUR currency acts as a thing, being USD to act as money.
The implication:
- If the price rises, it is GBP or EUR rallied and USD weakened.
- If the price falls, it means GBP or EUR USD weakened and strengthened.
For CHF and JPY:
USD / CHF 1.2250 / 55
Meaning:
Selling price of USD 1 = CHF 1.2250
The purchase price was USD 1 = CHF 1.2255
USD / JPY 104.50/55
Meaning:
Selling price of USD 1 = JPY 104.50
The purchase price was USD 1 = JPY 104.55
Here USD acting as goods, CHF and JPY were acting as money.
Implications:
- If the price rises, it is USD strengthened while the CHF and JPY weakened.
- If the price goes down, meaning me1emah USD CHF and JPY gained while.
Online Forex Trading
Forex Trading Online forex trading is done online via the internet that can be done wherever we are. This is much due to the currents of globalization, where everyone can "play" a trader himself or herself directly via the Internet and also funds a minimum of a relatively cheap so it would make every individual in investing in the foreign exchange market.
Online forex trading services, is one of the efforts taken to enter the global market segment. With a new breakthrough in this field, then every forex trader to make transactions at any time during the 24-hour non-stop from Monday-Friday (except holidays), monitor portfolio progress, look at the price movement, see the chart, and so quite done front of the computer.
