How do you calculate your profits and losses!

How do you calculate your profits and losses!

How do you calculate your profits and losses!

Now that you know how to calculate the value of Alboynt Come to see us How to calculate your earnings or loss.

In our next example, we will buy euro and sell the U.S. dollar:

EUR / USD exchange rate was

1.4018/1.4021

Now we will buy the euro at 1.4021 Price

And the size of the deal (croaker) 100,000 $

If teams are spread is 3 pips on the transaction (transaction cost)

After a few hours the price moves to 1.4550

Then was our decision to close the deal to take profits

If the new price is 1.4048/1.4051

Once we closed the deal

The difference between the entry price 1.4021 and exit price 1.4051

Equal to 30 points or 0.0030 $

Because 1.4021 - 1.4051 = 0.0030 $

And we have our deal size was $ 100,000, each point will be accounted for $ 10

If profit is $ 300

It will ask the 3 points (Spreads taxi median)

A net profit is $ 270

Remind you another example ...

For example, if you want to buy one of the euro against the dollar in the exchange rate of 1.4480 and some of the "spread" and after the purchase to move the pair to 1.4481

Here we ask what is your winnings!

The answer is only $ 0.0001.

Because 1.4481 - 1.4480 = 0.0001 $ is not it!!

Currency need for patience

As with any new skill trying to learn they need to learn and patience, especially if you wish to promote yourself to get a good result of telling you you're a trader Newcomer must know certain conditions, including:

"That you put your hand behind you before you start your first deal must be the first deal is a deal visible through the eye on the planned resolution and follow-up result for an eye

Types of Forex trading orders

Types of Forex trading orders

Express requests or market orders (Orders) is an expression indicating the set of commands that you will enter into your trading platform with a brokerage firm.

Here we will discuss the different types of applications that can be placed in the foreign exchange market and you must know that the orders vary from brokerage firm to another chose what suits your trading.

Order Market Order Market Order

To open transactions (buy or sell) in the currency pair at the current price directly from Nafez trading prices.

Simply go to a window screen trading prices and press the mouse price of the currency pair, whether buying or selling transaction is performed

Is Alantraj Order Entry Order

This means that to buy or sell in the current price, and is typically used to automatically open the deal if the price reaches to the entrance command will be executed automatically and enter at the price you want.

How do I close the deal Close Position

To close the deal this is a very simple, all you have to click the mouse on the price under the Close box inside a ticket open position in the window of the open positions and will close the deal, as in the

example 1.47758 price is the closing price.

How do I put a stop loss order Stop-Loss Order

This is very excellent private who wants to manage money properly, and this is inserted through the introduction of price limit losses if reached the market that price will close the deal automatically this limit losses so as not to worsen the losses too much and caused greater losses can be adjusted these requests or canceled at any time. Is hedging Hedging

Hedging means that you open the purchase and sale of the same currency pair at the same time.

When should I use the hedging?

Is performed on transactions in the markets of long-trapped.

How start deal Hedge?

For example, open purchase 1 Lute worth 10,000 units in the EUR USD

What is the role of the brokerage firm, exactly?

What is the role of the brokerage firm, exactly?

In normal circumstances that the brokerage firm is a company that:

Play the role of mediator between traders, buyers and sellers.

Provide a trading platform that contains the spot foreign exchange rates and graphs, charts and indicators and data transactions orders.

Provide economic services such as news, analysis and recommendations and other services such as customer

Transactions are implemented through the commands that puts the client on the trading platform.

The brokerage firm takes taxi on this work and other services and this religiously permissible.

As you play the role of mediator between the merchant and the main financier of bank funds transactions.

Here please do not choose a brokerage firm that earn through commissions funding because it is contrary to the law, he chose the company that wins through the Spread only (ie taxi difference between the purchase price and the selling price on the deal) or profit from

the commission, and not from borrowing.

Are brokerage firms controlled?

Best brokerage firms that are subject to the laws Forex and licensed by the bank in the state where its offices are located, and in the table below most famous international regulatory bodies around the world.

Regulatory and supervisory bodies in the currency market

To ensure work with any brokerage firm in any place around the world must make sure that the company is subject to the laws of their country and have license to

do so by registering in one of the regulatory bodies or regulatory agencies, which in turn helps you to not be fooled by the selection of a brokerage firm in forex, and we our part we will these

The meaning of Lots, Margin and Leverage in the Forex

The meaning of Lots, Margin and Leverage in the Forex

What is The Lot ?

If you want to buy one of the euro against the dollar in the exchange rate of 1.4480 and regardless of the (spread) and after the purchase to move the pair to 1.4481

Here we ask what is your winnings?!

The answer is only $ 0.0001.

Because 1.4481 - 1.4480 = 0.0001 $ is not it!!

You must know something very important,

That the profession trading in the spot currency exchange means trading currencies piece or croaker Lot, and as in our previous example to buy or sell 1 of the currency against the currency will not benefit any profit.

So you trade to purchase or sell the quantities or sizes or cut or Lott to enlarge the size of the profits.

There are 3 sizes of contracts appear primarily ...

Standard size lot is $ 100,000

And mini-sized lot is $ 10,000

And the micro size of the lot is $ 1,000

You probably are wondering now how the small investor to trade in large quantities of money once to deposit small amounts.

Here we are going to remind you the definition of "leverage"

Leverage Leverage

Well .. Now you want to know how to be big winnings!!

Hana was the turn of purchasing leverage you will not buy just 1 euro against the dollar because that would not be profitable.

If leverage is, power Pettmkink control a large amount of money, "even if the owner of a small head with a brokerage firm" means trading a portion of your capital and borrow the rest to help you in the trade. "

Definition Margin (Margin) Margin

Naturally brokerage firm will ask you to book a minimum amount of your account

balance is known as margin security deal, and when you open your account at a brokerage firm you will have the ability to trade strongly lifting according to the margin required of you for each lot intended trading in it, and vary the lift between brokerage firms of 1: 50 to 1: 400

If the other meaning of the leverage it, the ratio of the amount of size to buy or sell used in any transaction, to deposit the required security margin.

For example brokerage firm will help you buy a pair coin size Lott $ 100,000 and ask you to deposit only $ 1000 Kmarzin secure the deal, prove good faith response facilities without damage to the brokerage firm on the money funded from the bank, face competition

mediation book this deposit until the transaction but does not remain with necessarily.

If leverage advertised in this example is 1: 100

Means deposit 1000 $ × 100 = 100.000 investor capital.

And now to the calculations:

Now we're going to give you some examples calculations to be able to understand what is already ...

First a calculation to illustrate croaker ..

For example, if the U.S. dollar is the main currency first account will be as follows:

USD / JPY exchange rate of 119.90

(0.01 / 119.80) × Lott b $ 100,000 = 8.34 $ Per Point

USD / CHF exchange rate of 1.4555

(0.0001 / 1.4555) × Lott b $ 100,000 = 6.87 $ Per Point

For example, if the U.S. dollar is not the currency first hand the north, will be slightly different account:

EUR / USD exchange rate of 1.3138

How do you calculate value Alboynt to rate the size of the piece, will be as follows:

One point is equal to $ 10 per Point in the price movement.

Thus calculated but be aware that the value of Alboynt vary from brokerage firm to another relative to the size offered by croaker, but in any case all

these accounts be equipped with an automated fashion.

A calculation to illustrate Leverage and Margin

Second example of the margin requirement and leverage

To open the package in a standard account K100 b $ 100,000

You may be asked margin by 1% or $ 1,000 to open a one lot

If leverage in Forex made you trade $ 100,000 with only 1% only Kmarzin required if leverage ratio is 1: 100

Means that the deposit of 1000 $ × 100 = 100.000 investor capital.

To open the package in a mini account K10 b $ 10,000

You may be asked margin by 0.50% or $ 50 to open a one lot

If leverage in Forex made you trade $ 10,000 with only 0.50% only Kmarzin required as leverage ratio is 1: 200

Means that the deposit of 50 $ × 200 = 10.000 investor capital

To calculate the number of transactions allowed you to compare the amount of your balance with the brokerage firm rule says:

Total your brokerage account ÷ Margin = the number of transactions allowed

For example, if your balance at brokerage firm $ 1,000 in a mini account

And prompted margin 0.50% or $ 50 margin per deal to buy a lot to $ 10,000

If you have a chance to make all trades 20 to 50 $ Kmarzin.

$ 1,000 account balance ÷ 50 $ margin = 20 deal allowed

Another example

If you have a balance of $ 5,000 in a standard account that every $ 1,000 you have, you can trade in one lot to $ 100,000 that this will allow you to use a crane to reach stores balance to $ 500,000 as a total lifting power.

Margin and Leverage

If the margin is combined with leverage this group may be fatal if used in a bad way!!

The Forex Trading on Margin increase your purchasing power if you had $ 5,000 in a margin account that allows you to strongly raise up to 100:1 Here you can buy up to $ 500,000 of currency because you only have to deposit 1% margin is required as a deposit for the deal.

However purchasing power larger can increase your ROI college with less valuable critique, but be careful because the margin trading may increase the losses in the absence of a money management intact, we notify you later the importance of this lesson is detail in the management department money to be able to trade safe manner and use the most appropriate leverage and appropriate lot size for each transaction,

according to the size of the head of the owner.

Risk Warning: holds foreign exchange on margin a high level of risk, and may not be suitable for all investors, and could result in high amount of leverage to backfire against you as well as it can lead to good results for you, so before Taking the decision to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite, The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you can not afford to lose , you should be aware of all the risks associated with foreign exchange trading,

and seek advice from an independent financial advisor if you have any doubts

The spread and the points in forex trading

The spread and the points in forex trading

Points gap between supply and demand (the spread)

For example, in the exchange rate of EUR / USD was 1.4503 / 1.4500

This will read verbally without the first three digits of the three as follows 03/00

If the difference here was only 3 points, these 3 points are taxi mediator on the size of the deal.

Remember an important point here pay Spread the type of relationship deal to buy or sell ..

When you buy a currency you will pay teams spread between the two currencies because you pay the difference until you open the package and enter the market, and do not pay anything when you go out, but when you sell the currency you will not pay spread between the two currencies when you open the transaction but will pay this spread when you want to close the deal and get out of the market.

Spread the brokerage firms

* Note: companies seek mediation to provide differences spreads competitive narrow, but there are cases where you may spreads to widen beyond the typical spreads according to market conditions especially at the news, and get brokerage firms currency rates directly through its relationship banking with

the largest banks and financial institutions in the world of price providers.

Most brokerage firms offer spreads difference of 2 to 4 points in the major currency pairs and this cost represents about 0.025% of the cost of the deal unlike stock markets that may cost 0.125% five-fold.

Try to choose a brokerage firm that was spread this average difference and choose companies that offer variable spreads considerably in response to market volatility with the knowledge that the spread is not everything in the selection of companies.

The relationship between the spread and the cost of the deal:

The formula to calculate the cost of the transaction in accordance with the Spread

Transaction cost = ischial price - Price Alipid = points difference (spread)

For example, in the exchange rate pair USD / JPY was 119.82 / 119.80

If the cost of the deal here is only 2 points, 3 points are taxi mediator of the size of the deal.

Because 11982 - 11980 = 2 points difference between the bid and ask price

Buying and selling, supply and demand in forex

Buying and selling, supply and demand in forex

In order to know the difference between Allong long and shorts short

First you have to determine your decision Do you want to buy or want to sell?

Yes, I want to buy

Well if you want to buy, I know you really buy the base currency (which is on your hand north of the pair the currency in which they appear movement on the chart in the chart) and the purchase currency selling anti (which is on your hand right of the husband) in the price shown on the your right hand

And complete the purchase by clicking the mouse on the price on your right hand side of the request to open a long position with him.

That is, as in the example shown in the image

The pair is $ EUR EUR / USD

Any you are going to buy the euro to sell the dollar

At a price of 1.4503 by clicking on the right side of the price as it appears in 1.4503

Long and be based on your analysis of the market and expectations that the base currency (the euro) may worth Vtstraeha than process (Long) and Allong Long any purchase BUY

This is called in the words of the merchant, "Go long going long or open a Long position Long position.

* Note that Along mean you expect that prices will be on their way to high and appear on the chart that the euro currency in an upward trend in the development of the rise.

In the example, buying the euro at a price of 1.4503

I mean you have a deal (Long long) any purchase in the price of 1.4503 and remains retains the deal in the window open positions open position, if you want to close the deal when you start your winnings, you must click on the price in the box close in the window open positions open positions .

* So to begin Merchant won the first point would be at a price of 1.4507 after skipping the 3 points, points spreads taxi mediator

Remember to pay spreads when the purchase deal

When you buy a currency you will pay Spreads first difference between the two currencies because you pay the difference until you open the package and enter the market, and do not pay anything when you go out.

Any order noted with us ..

In the price of 1.4503 entry price in a deal to Long

In the price of 1.4504 was paid 1 point spreads Broker

In the price of 1.4505 was paid 2 point spread on the Broker

In the price of 1.4506 was paid 3 pips spread taxi full mediator

In the price of 1.4507 beginning of calculating the first point won, then every point you profit calculated For example, if price reached to 1.4520 means that you won 13 points ..

If you want to sell

Know that you are in fact also will sell the base currency (which is on your hand north of the currency pair that show movement on the chart in the chart) and the base currency is sold to buy the currency counter is on your right hand from her husband in the price shown on your right hand

The sale is clicking with the mouse on the price at which you see on the side of your hand north of the request to open the sale.

That is, as in the example shown in the image

The pair is $ EUR EUR / USD

You are going to sell the euro to buy the dollar

At a price of 1.4503 by clicking on the north side of the price as it appears in 1.4500

And the sale is based on your analysis of the market and expectations that the base currency (the euro) may weaken the value Vtabieha process (Short) and shorts SHORT any sale SELL

This is called in the words of the merchant, "Go short going short or open a short position Short position.

* Note that the shorts means you expect that prices will be on its way down and appear on the chart that the euro currency in a downward trend in the development of depression.

In the example, sell the euro at a price of 1.4503

I mean you have a deal (Short Short) any sale in the price of 1.4503 and remains retains the deal in the window open positions open position, if you want to close the deal when you start your winnings, you must click on the price in the box close in the window open positions open positions .

* So to begin Merchant won the first point would be at a price of 1.4499 after skipping the 3 points, points spreads taxi mediator

Remember to pay Spreads on sale

When selling currency you will not pay the spread between the two currencies when you open the package, but this spread will pay when you want to close the deal and get out of the market.

Any order noted with us ..

In the price of 1.4503 entry price in a deal Short

In the price of 1.4502 was paid 1 point spreads Broker

In the price of 1.4501 was paid 2 point spread on the Broker

At 1.4500 was paid 3 pips spread taxi full mediator

In the price of 1.4499 beginning of calculating the first point won, then every point you profit calculated For example, if price reached to 1.4480 means that you earned 19 points

The difference between the stock market and the currency market

The difference between the stock market and the currency market

(1) trading is available 24 hours a day in the Forex

The exchange market market is open 24 hours continuously, and more brokerage firms open software platform trading on Sunday at 5.15 pm EST until Friday at 4 pm EST, while providing customer service 24 hours a day during the 7 days a week, with the possibility of the ability to trade during Asian market hours, European and American, so that you can decide the agenda for your own business.

(2) free transaction expenses in Forex

Brokerage firms in the market exchange trading in the currency will not gone without any commissions on trades in the Forex online or over the phone because there is a difference spreads fixed a difference between asking price and the bid and this spread is taxi brokerage company that are less than those in any other market.

(3) implementation of multiple commands in Forex Market

Your transactions will be carried out under normal market conditions, and can be rapid implementation in most of the time, but in light of volatile market conditions may face extremely

rolling of delays in implementation due to change prices quickly or non-implementation

why is the Forex important

why is the Forex important

There are many benefits and benefits for trading in foreign exchange and we'll show you a few of the reasons why many people are choosing this market:

(1) There are no fees, no fees for services

There are no fees and no additional charges for services, not wages to open new accounts or wages government and taxes and commissions at all, companies are mediation compensated for their services that they provide through their access to spread or what is known as the difference between the purchase price and the selling price of the deal any difference in points between the pair currency shops in it.

(2) to get rid of additional brokerage

Currency Trading Instant rid of brokerage and allows direct interaction with customers relying on market pricing for a particular currency pair, which does not cost the merchant any costs at all.

(3) the cost of the deal is very low

The cost of the deal is just the difference between the purchase price and selling what is known Typically less than 0.01% under the terms of normal market so no matter how big deal difference

will not exceed the 0.07% for example, if traded on a pair Eurodollar long position you will pay Spread 2 points (cost deal).

(4) There is no fixed size to the size of the deal "croaker"

In the equity markets, you will find that the size of the transaction specific exchanges, which each hold size standard stock In exchange immediately, there is no fixed size of the deals and know the size of the deal with the word "Lot Lot" This allows traders participating accounts small, it can open a deal exceed 1000 paper currency and up to 100,000 sheets of currency.

(5) market is open 24 hours

Forex there is no waiting for the bell opening "as in the stock market," it is Sunday evening to Friday afternoon EST, market forex trading does not sleep, and this very desirable for those who want trading without restrictions by their time in other they can choose when trading - morning, noon or night

what is the Forex ?

what is the Forex ?

FOREX is the abbreviation for the phrase "market in foreign currency exchange"

FORegien EXchange market

Old currency was fixed constrained not moving, but in 1973 was liberated currency "floating became" According to the circumstances, economies and politics originated the forex market to benefit the people of the spread.

The meaning is obvious for this market is trading immediate foreign exchange outside the stock market through brokerage firms online This company offers brokerage services in financial facilities from banks to customers, and also provides services economic analyzes and provides trading platforms for customers to enter the spot market currencies over the Web or mobile or via trading software to be installed on the computer, and after that you open your new account with a brokerage firm and is funded with money you can merchant contracts and business deals to buy or sell a share between currencies at the discretion of you as an investor of predicted strength of the economy of the State Buy used its currency to sell another currency with you, or

expect to double the nation's economy Vtabie currency to buy another country's currency.

All of this is done through your real you are opening and funding money to the brokerage firm of their choice and that Stdkhalk to this market.

The intended interchangeably in currency outside the stock market because Forex does not have a financial center known merchants are carrying out exchanges between currencies in times of global work inches.

And a lot of beginners ask to be traded exactly!

What bulletin, and what we sell in forex!!

Forex means in foreign currency exchange, do you know exchange office!

Imagine yourself as the owner of a money exchange you may be a buyer or seller of the coin as you want in exchange therefore you should know that Forex trading in the form of exchange between the couple any two currencies buy one and sell the other (if you are a buyer) or sell one and buy the other (if you are a seller