Basics of Forex trading
Specifications for key exchange operations
We are familiar with the basic concept: always any forex currency trading over another value: the first piece of the base currency of the second coin (left) the currency-(right) of quote and trade, buying the base currency quoted currency.
If we bought some and bought by the appointment of sales base. In our example, £ 1 for sell buy $1.4135. If we sell some of them, and do the opposite.
If you plan to see which currency pairs are quoted, you will see two different prices are listed below:
. Price that the broker has asked to buy at the price of the base currency (in quotes), pay the price, if I want to sell the base currency currency broker.
The exchange rate is the ratio between the values of the two currencies. For example, consider another quote:
M = 1.3276 EURO monetary base Price = $ = 1 euro = euro price controls, 1.3272 1.3272 dollars, euros, 1 EURO to buy sell = 1.3276 USD spread = 1.3276 1.3272 = 0.0004
If a couple, buy that means buying the base currency for quotation currency. If we do, we believe that the base currency (in comparison with the amount of money). If we sell some tools, we believe that the value of the currency falling base (in comparison with the amount of money).
You must also knowMore-in a single operation of the gold standard. There are 3 main dimensions:
Micro = 1000 currency units (for example, 1000 EURO)
Mini = 10000 currency units
Default = 100000 currency units
A mini account is that each PIP is worth about $1
Is that a single standard account is around $10 1 PIP value of
Buy place Lange (Prévoir la Monnaie pouring)
Short sale (including currency)
Let us see an example EUR/USD:
Your
Action
|
EUR
|
USD
|
You purchase 10,000 euros at an EUR/USD exchange
rate of 1.2880(BUY position on EUR/USD)
|
+10,000
|
(*)
-12,880
|
3 Days later, you exchange your 10,000 euros back
into us dollars at the rate of 1.4880 (SELL position on
EUR/USD)
|
-10,000
|
(**)
+14,880
|
You exit the trade with a $2,000 profit(EUR/USD
increased 2,000 pips in 3 days! In our example, 1 pip is worth 1 us dollar)
|
0
|
+2,000
|
** 10,000 Euros x 1.4880 = $14,880
Stop loss order:
It is very important and useful commands! It is recommended that all people are accustomed to, "Stop-Loss" is added for each open position. Preventing further loss above a certain price level. In fact, it's that an order is executed when the price reaches a certain level. When the market is against you, can be stop loss for big losses. The stops are located throughout the trading platform available. To get started, please enter your broker, a stop loss order.
Trading order
Where the stop loss order:
Buy (long)-true stop leak in support, the level of current customer order trends.
For sale (what about short positions) – stop loss order on the concrete amount of the strength of the current trend to buy.
To avoid these common mistakes:
Put your stops are too close to the market price of the pair. Price changes can, isn't it, to stifle currency.
Place your stop loss order not taking into account the levels of support/resistance
The price has the opportunity to actively
Do not change your orders, halting the loss of their trade. Stick to your trading plan, don't let your emotions control your trading!
To apply: this is the order of garage, which is determined by the high-fashion retailer. If the price reaches that level, it automatically switches and businessmen will increase their profits.
This should guarantee a certain interest (even if you have the opportunity to make more money). Stop loss and take profit is the biggest advantage of this, avoid sitting in front of the computer all day, looking at your Office! You know these commands, when the price of one this reaches 2 level, the position is closed automatically.
