Forex terms

Buy

is the position in Forex Trading for the Buy. Condition is if the price was going up significantly then you can open a Buy position.



Fibonacci

is a branch of the particular technical indicators to determine areas of support-ressisten. The most famous and easy to use the Fibonacci Retracement. Other families are Fibonacci Arc, Ekspansion. Fibonacci device you can also find the Metatrader software.

forex popular

Why Forex Market is popular

At present it is very hard to ignore the detail that forex market is the world's biggest financial market. Over the preceding few years, it has turn into the most popular market with trades amounting to more than USD 3 trillion each day. Usually referred as currency trading market, it always involves the combination of two currencies. For example- either you can buy Euro or sell US dollars, or you can buy and sale any other combination of globally standard currencies.

Be Knowledgeable About the Fundamentals of Forex Trading

Among day traders, the Forex trading has been rapidly since in the year of 1990, as day traders have seen the benefits that trading currencies can have over trading stocks. Forex trading can be much more difficult for a newcomer to learn and master the business because there are fewer currencies for beginners to purchase over the large number of stocks available. Still, there are some fundamentals or basic principles that someone new to forex trading should learn, and these concepts may even be helpful to the experienced trader.

Hedging and Averaging Techniques

Hedging and Averaging Techniques

Hedging is a technique to minimize unwanted risk by opening opposite trading positions. Usually hedging strategy is used to limit risk without cutting losing positions. (as sometimes traders do not want to use Stop Loss).
By using hedging, a trader is able to mantain loss amount at a constant range (locking).

Example :
A trader ordered Buy EUR/USD 1 lot. Unfortunately, market went against the trader’s position (downward). At the moment his position reached -20 points floating loss, he can order Sell EUR/USD 1 lot to lock losing position at -20 points. This action is called hedging, and no matter what direction the market goes, upward or downward, his loss will be locked at -20 points. (assuming there is no spread charge)

Averaging is a technique to minimize unwanted risk by opening another position with the same direction at different price level.
Averaging strategy’s objective is to minimize risk by averaging more than 1 positions which are opened at different prive levels.

Example :
A trader ordered Buy EUR/USD 1 lot at 2.0100, unfortunately, market went against the trader’s position (downward) to 2.0000. Now he suffered 100 points floating loss.

In this scenario, the trader could use Averaging technique to minimize the risk by opening Buy EUR/USD 1 lot at 2.0000. At this point there were 2 open trades : Buy EUR/USD 1 lot at 2.0100 (-100 points loss) and Buy EUR/USD 1 lot at 2.0000. (0 point)(assuming there was no spread charge).

A few hours later, market moved to 2.0050, the trader would have 1 trade at -50 points loss and another trade at +50 points profit. This point (2.0050) is BEP level (Break Even Point) of both trades. Once, the price goes higher than 2.0050, the trader will earn profit.

How To Increase Forex Profits 100% in 10 Minutes

This simple exercise will increase Forex profits 100% and works for 99% of all short-term FX traders - stop trading so much - widen out your stops - widen out your profit targets - and only trade in the direction of the trend indicated by 4 hour chart.

• 1) Stop trading so much

Sure there are no commissions but the spreads are HUGE and believe it or not (well you’ll believe it after you do the simple exercise below) the spreads are reducing your profits 100%!

• 2) Widen out your stops

Initial stop loss should be a minimum of 23 points; I use between 23 and 35 point stop losses for short-term trading.

• 3) Widen out your profit targets

Unless you think a trade can make you 100 points or more don’t do it.

• 4) Only trade in the direction of the 4 hour chart

The real money is made in the direction of the trend
Simple exercise :

• Download all your trades for the year into an excel spreadsheet (if you don’t know how to do this ask your broker for help).
• Determine the dollar value of the spread for each trade.
• Sum up the total dollar value of all spreads for all trades and add this number it to your current account balance; this is your spread adjusted account balance.
• Take your spread adjusted current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
• Take your actual current account balance and divide it by your opening balance at beginning of year; the result will be a percentage change.
• Subtract your spread adjusted year to date percentage change from your actual year to date percentage change.
• That number should be 100% or more
  

Take the necessary steps as outlined above (1 to 4) and improve your results 100%

Stop Loss and Limit

As with other business sectors, investment in margin trading FOREX has the potential losses. However, the interesting part of this business is that the risk level can be set from the beginning, so it can know the potential level of losses that will occur.



This brief article will help you how to put the "fence" in your position so that the risks that might occur can be limited as far as we want. So is the profit gained can we limit it. The reason why we limit the profit here is because of the nature of the currency itself is a very volatile / fluctuate so that our position may now have become a profit loss due to exchange rate has moved indigo reversed from what we want.



Now imagine if you are an employee in an office and also invest in forex trading. Say you trade at night and during the day you have to work and not be able to monitor your trading position. What if when we are monitoring our trading positions and prices move opposite to our position and even move opposite too far. It could happen a margin call (closing of positions in margin loss due to lack of collateral). Of course this is not our desire.


That's why the facility provided "fence" or limit in any forex trading platform. Point to prevent the unpredictable circumstances that affect our trading portfolio too far. The second boundary is termed a Stop Loss and Limit.

Stop is willing to limit our losses while the limit of responsibility is a limit to profit target that we take.

forex VS Other Investment Programs

There are several advantages to offer forex trading that can not be offered any other investment. Technology advances enable the emergence of several highly simplify the excess of investment activities. Simple question that is often leveled new investors to start investing in forex trading is: Why should I invest in forex? What are the advantages compared with investments forex options?

This article is to answer the questions above. Here are some advantages to offer forex trading that can not be offered any other investment.

1. Return on Investment highest compared to other investments


Are there investments that can offer a return to infinity? Forex can do it!

2. High Liquidity

This means you can always buy or sell currency that you want to transaksikan and there is no transfer of power failure here. When you take action to buy, there are always others who will sell it to you and vice versa. This occurs because the investment scope of the world forex market which is connected to each other. In contrast to the local market (ex: JSE) where the transaction took place only on those exchanges that can occur only failed to hand over the incident.

3. Capital required is relatively small

It is first necessary capital could be very large (reaching 100 million). But now with AsiaFxOnline of PT AKKB, capital needed only Rp 5 million alone. Compare with other investments such as stocks of capital needed at least USD 20 million, or investment real sector which is usually more than Rp 50 million.


4. Trading hours and 24 hours a day 5 days a week

No word night or afternoon in the world of forex trading. The market lasts for 24 hours a day starting from the Asian market to European and American markets. Compare with stock that is only open in office hours or commodity markets only open in the morning until noon. If you are an office worker, you can trade forex trading at night and does not interfere with your working hours.


5. Anywhere, anytime and anyone can join

Yes, investments do not recognize caste. Likewise with forex trading. Whoever you are, merchants, workers, a housewife, or even once a farmer can join. And more great again with the progress of the internet, you can trade anywhere without having to go to the relevant stock exchange or call your dealer directly. This clearly saves time and costs.


6. Investors active in the investment act

Unlike other investments where the investor can only trust a third-party managed funds (mutual funds, insurance, deposits, etc.), the forex trading is you who decide themselves when and how much you are going to invest by buying or selling actions. Now your investment depends on yourself and not to others.

7. Real-time price that you can access at any time free of charge. We think this is enough, no need to explain again. All for free.

8. There are demo accounts you can have for free without paying any sepesr! If you are new to forex, it will really help you because the price listed on the demo account is the same as the real price in the market.


9. 1:100 leverage offered
This means that with one part of what you spend, you can buy or sell as many as 100 sections. This is the excess of margin trading, where all it takes is guaranteed only to buy or sell goods required. In forex trading is implemented with a capital of $ 100 then you can buy the dollar as much as $ 10,000 and is also contrary to the selling action. High leverage and low margin can basically increase the benefits or otherwise harm you. Thus, you should consider the investment risk and your investment plan

10. Online reporting and transaction

It first forex trading conducted through telephone and written reports on the results of your transaction will be sent via email or even post every month. But now with internet access, and even report any transactions you can you access them whenever you want without having to wait for the part of the report to your broker.

11. Security and confidentiality guaranteed

Although transactions are conducted through the Internet does not mean that security and confidentiality of information and your funds are not guaranteed. Party brokers providing trading data encryption and secure your funds were stored in segregated account if you do it on a legal broker

So now we return you to objectively consider and adjust with your investment goals. Clearly, BelajarForex there to help you understand this investment and obtain maximum benefit from it by providing information and as complete as possible.

A Brief Introduction to forex Trading

Forex Trading or Trading FX (short for Foreign Exchange or Foreign Currency exchange-FX) is the currency trading between the two countries which differ in value from time to time. Forex is an investment product and the liquid nature is international. Currency differences between the two countries has changed from waku to waktulah the basis of profits earned.


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.