Basic materials Forex / Materi Dasar Forex

Forex trading lessons with this, hopefully can help you to get basic information about the forex market. A new and will start to venture into the world of forex trading and shall be read as a provision of this article before you start entering the world of Forex Trading. 


FOREX CURRENCY PAIR 

Reading a foreign exchange quote may seem confusing at first. However, it's really quite simple if you remember 2 things when you start trading Forex. 

1) The first currency listed is the base currency 

2) The value of the base currency is always 1 (one) 


The US dollar is the centerpiece of the Forex market and is normally considered as a currency 'base' in quotation marks. In a "currency", this includes USD / JPY, USD / CHF and USD / CAD. For these currencies and many others, served as the unit of 1 USD per the second currency quoted in a currency pair. 

for example: 

A quote of USD / JPY 120.01 means that one US dollar is equal to 120.01 Japanese yen. When the US dollar is the basic unit of currency is up, it means the dollar strengthened and the other currency has weakened. If the USD / JPY quote we previously mentioned increases to 123.01, the dollar is strong and if you buy (buy) at the starting position, then now you have a profit of 3 points). 


But there are 3 exceptions here: 3 exceptions to this rule are the British pound (GBP), the Australian dollar (AUD) and the Euro (EUR). In this case, you might see a quote such as GBP / USD 1.4366, meaning that one British pound equals 1.4366 US dollars. In the three currency pairs, where the US dollar is not the base rate, quote up means a weaker dollar, as it now takes more US dollars to equal one pound, euro or Australian dollar. In other words, if the quote currency / currencies mentioned earlier of a currency pair, the higher the current, / up, then the value of the base currency is rising. An excerpt of the low / move down means the base currency is weakening. 

Currency pairs that do not involve the US dollar are called cross currencies, but the premise is the same nyaadalah. For example, a quote of EUR / JPY 127.95 signifies that one Euro is equal to 127.95 Japanese yen. As you continue to learn Forex trading, you will often see the two sides of the quote, consisting of 'bid' and 'ask'. Well, 'bid' is the price at which you can sell the base currency (at the same time buying the counter currency). The 'ask' is the price at which you can buy the base currency (at the same time selling the counter currency). 


TERMS PIP. 

Once you start to learn Forex trading, you will learn to love this word, because that is what you will find for your Forex career. Pip is the smallest denominator of a particular currency pair, so for the above example, if the EUR / USD moves 1,2150-1,2155 then it has moved up 5 pips. Our pip yes referred to as points. You know? 


FOREX lEVERAGE 
Well, Bro .. If you have $ 10,000 to trade in forex, Forex broker will lend you money so that you can trade in larger quantities. They will give you a loan of 400 times (400: 1) to set up a trade. forex brokers. Most allow between 50: 1 and 100: 1 margin. So, if you put up $ 1,000, and your broker allows 100: 1 margin, then you will be trading $ 100,000 worth of currency (instead of $ 1,000). 
That's important, because each pip is equal to a certain dollar amount. When you trade $ 10,000, each pip movement equals $ 1. If you enter a trade currency worth 10,000 each movement would be equal to $ 1. So if you buy at 1.1445 and sold at 1.1545, you will make 100 x $ 1, or $ 100 if you trade $ 100,000, each pip movement would equal $ 10 and so on. 


BUY and SELL 

There are 2 different ways to trade in the Forex market and many beginners (or those who continue to learn about Forex trading) were surprised to learn that they can actually make a lot of money when the currency price moves down or when riding. Let's start with the most logical, when the price goes up. 

Most people are familiar with the concept of buying something at a low price and sell it when the price increases. So the concept of buy EUR / USD at 1.2150 and sell at 1.2160 for a 10 pip gain should seem logical. This process is called buy or long. You can also do this in reverse! If you know that the price of the currency is likely to go down rather than up, then you can start to sell (short). This is the opposite of the above transaction, selling it first and then buy back the hope that prices will come down for you to make forex profits. 

This may seem strange at first, but the concept remains the same either way. You always want to buy something at a low price, and sell expensive. Okay, Later you will be familiar too. If at this stage do not understand, please add YM ID: ladang_dollar@yahoo.com you can talk to me. Let's continue our study of the Forex trading. 

SPREAD 

The difference between the stock market and Forex broker, is that the Forex market, broker commissions are either very low or zero. So, how is this? make money? They make the "spread" is the difference between the actual price and the price offered by the broker. In particular broker spread is different, you can see the difference between the offer / bid (the price you can put on a sell order) and Sales / ask price (the price you can put on a purchase order). There spreads starting from 1 pip, pip 2 or 3 pips spread. 

What does that mean for you? Well, let's see. If you buy EUR / USD at 1.2158 as offered under the Offer, and immediately sell it before the move, you will only get 1.2155 as shown in the bid. So the end result is -3 pips, or a loss for you, and the benefits to the broker. Keep in mind that when we take our position in direct spread will become a net minus for us to spread it. 


BULLS AND BEARS 

Once (you) start learning Forex, you will constantly see the term "Bears" and "Bulls" in Forex books and chat room. It is a term that describes a common market. "Bears" forex market, is when the market goes down, that is, when there are more sellers than buyers in the market. A "forex bull market" is the opposite, when there are more buyers than sellers and the general atmosphere of the market is up. Forex is literally the place where the cow and the bear fight, and if you can identify who gets the upper hand, then you can identify the direction of prices. Easier said than done, of course. So the term Forex Bears and Bulls here I mean the usual: Comparison between the stock market Forex (bears) with the Buyer in the Forex market (Bulls). 


CALCULATING INCOME FOREX 

Forex market, the cash market is a virtual market where currencies of nations are bought and sold. Forex trading is always done in currency pairs. For example, you buy Euros, paying with US Dollars, or you sell Canadian Dollars for Japanese Yen. The value of your investment increases or decreases Forex due to the currency exchange rate or Forex. These changes can occur at any time, and often result from economic and political events. Using a hypothetical Forex investment, this article shows you how to calculate profit and loss in Forex trading. Let's continue the basic lessons in forex trading ... 


To understand how the exchange rate can affect the value of your Forex investment, you need to learn how to read a Forex quote. Forex quotes are always expressed in pairs. In the following example, your pair of currencies are the US Dollar (USD) and the Canadian Dollar (CAD). Forex quote, USD / CAD = 170.50, means that one US Dollar to Canadian Dollar 170.50. The currency to the left of the "/" (USD in this example) is called the base currency and its value is always 1. The currency to the right of the "/" (CAD in this example) is referred to as the counter currency. In this example, one can buy Rp 170.50 CAD, because it is the stronger of the two currencies. US Dollar is regarded as the main currency market Forex, and always treated as the base currency in any Forex quote where one of the partners.

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