Thursday, March 17, 2011

> Forex Trading System

By :Taufiqullah Neutron (Masteropik)

FOREX TRADING PURPOSES

The purpose of the investor in Forex trading is the profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example today, the exchange rate of EUR / USD is 1.0857. This number is also referred to as the Forex rate "or just" rate "for short. If the investor has bought € 1,000 at that time, he will pay 1085.70 dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR / USD ratio) increased in relation to the U.S. dollar. Investors can now sell € 1000 to receive 1208.30 dollars.

When trading currencies, trade only when you expect the currency you are buying to increase relative to the value of the currency you are selling. If the currency you buy there is no increase in value, you must sell back the other currency in order to lock in profits. An open trade (also called open position) is a trade where traders buy or sell a particular currency pair and has not sold or bought back the equivalent amount to close the position.


In the trade we can obtain profit from rising or whether the market is down. His way is by analyzing a currency pair which will naek or down, and take its difference from the trade.
If you believe the currency will strengthen (increase) immediately do buy position, then wait for prices to rise, perform closed (sell) when the currency exceeds the purchase price you earlier.
If you believe the currency will weaken (go down) do sell position, wait for prices to fall, do closed (buy) when the currency below the price you earlier.

As the example is this:
Opening of Euro 1.1750 / 1.1753, you analyze that the euro will be a position nak 1.1770/1.1767, then the open buy position when the price is (then you buy at the position of 1.1753), and when the position changed to 1.1770/1.1773, do the closed position / sell currency these (at position 1.1770)
Then you can profit in two occasions. Okey?

HOW TO TRADING?
Forex trading is usually done through a broker or market maker. As a forex trader you can choose the currency pair that you expect to change the value and place trades accordingly. For example, if you had bought 1000 euros in April 2010, it will cost you about $ 1,300 USD. Throughout 2010 the value of the Euro vs U.S. Dollar value increases. At the end of the year 1000 the Euro was worth $ 1,400 U.S. Dollars. If you choose to end the trade at that point, you will have a profit of $ 100.

Booking and transaction can be done only with a few clicks and brokers become business partners. When you close the trade, the broker closes a position in the Interbank Market and credit your account with a loss or gain. This all can happen within a few seconds.

TRADING RISK
Is it true that forex is scary? Trading in this market is very risky and should not be attempted by beginners without the assistance of an experienced trader. If you plan to enter the forex market, it is recommended that you should first learn about the forex market and how it works. In the forex market, you can easily make a profit and you can easily lose money as well.

Forex trading can not be predicted accurately, it can make you lose money in large quantities. Taking classes that offer forex trading course is recommended that you can understand more about this market and learn how you can minimize loss and maximize profit. Or if not, you can study seriously at sites on the Internet that discuss the problem of forex trading. You can directly to the scene: cafetrader.bolgspot.com and www.seputarforex.com.





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