learning currency trading
Foreign exchange is the simultaneous exchange of currency from one country to another. FOREXYARD offers online trading platforms optimal for individuals wishing to speculate on the exchange rate between two currencies. Speculators buy or sell one currency for another to generate profits when the value of currencies changes in their favor, according to world events. This market of exchange has more daily volume of buyers and sellers than any other market in the world. The forex market is available 24 hours on 24, and 5 days a week. Moreover, the foreign exchange market is the largest financial market in the world with a daily volume of over 1.4 trillion dollars circulating a seller to a buyer around the world, making this market, the market the most exciting markets negotiation. While currency trading is governmental (central banks) and Institutional (commercial banks and investment), technological innovations, such as the Internet, have allowed individuals to enter the foreign exchange markets and negotiate through online intermediaries.
How does currency trading?(learning currency trading)
In the forex market you can buy or sell one currency for another. When you buy a currency, you are "long" in that currency and when you sell a currency, you are "short" in that currency. Since the value of a currency is stronger or weaker compared to another, stock traders decide to buy or sell currencies to generate profits because the objective is to generate a profit from its position . Trader in the forex market is simple and negotiation mechanisms are virtually identical to those in other markets. Because of the symmetry of currency transactions, you are always simultaneously long in one currency and short in another. An open position is a current position. As long as the position remains open, its value fluctuates with the exchange rate market. To close your position, you make an equal and opposite trading in the same currency pair. For example, if you were long in the pair EUR / USD you can close this position then being short in the pair EUR / USD (the price of the prevailing side).
Coutation currency pairs(learning currency trading)
Currencies are quoted in pairs like EUR / USD or USD / JPY. The first listed currency is known as the base currency, while the second currency is called against or quoted. The base currency is the "base" of the sale or purchase. For example, if you BUY in EURO / USD buying Euros (and simultaneously selling dollars). Hoping that the Euro will be stronger (rise) compared to the U.S. dollar.
EURO / USD
In this example Euro is the base currency and thus the "basis" of the purchase / sale. If you think the U.S. economy will weaken and this will affect the U.S. dollar you would execute a BUY order of EURO / USD. You buy the euro, hoping that they will be stronger than the U.S. dollar. If you think the U.S. economy will remain constant and the rate of the Euro chutrera against the U.S. dollar you would execute a SELL EUR / USD. You will sell Euros hoping they will be weaker than the U.S. dollar.
USD / JPY
In this example the U.S. dollar is the base currency and thus the "basic" buy / sell. If you think the Japanese government will lower the yen to help its export industry, you would execute a BUY order of USD / JPY. You will buy U.S. dollars hoping they will be stronger than the Japanese yen. If you think that Japanese investors will withdraw their money in U.S. financial markets and they distribute their funds in Japan, and that this would lower the U.S. dollar you would execute a SELL USD / JPY. You sell U.S. dollars hoping they will be weaker than the Japanese yen.
GBP / USD
In this example the pound sterling is the base currency and thus the "basic" buy / sell. If you think the British economy will continue to have the best economy of the G8 nations in terms of development, so by buying pounds sterling, you will execute an order to BUY GBP / USD. You will buy pounds in the hope that they will be stronger than the dollar. If instead you think that the UK adopt the Euro and it will drop the price of the pound, you would execute a SELL GBP / USD. You will sell pounds in the hope that they will be less strong than U.S. dollars.
USD / CHF
In this example the U.S. dollar is the base currency and thus the "basis" for the purchase / sale. If you think the U.S. dollar is undervalued, you would execute a BUY order of USD / CHF. You will buy U.S. dollars hoping they will be stronger than Swiss francs. If you think that because of the instability of financial markets in the Middle East and U.S., the dollar will fall further, then execute a SELL USD / CHF. You sell U.S. dollars hoping they will be weaker than Swiss francs.
First, the trader must determine whether they want to buy or sell. If they want to enter a short order in which they generate a profit if the exchange rate falls - they will click on the SELL rate. And for the trader entering buy orders: they will click on the BUY rate, and they will generate profits if the exchange rate rises.
Such purchase / sale
As in all markets, there are two prices for each currency pair. The difference between these two prices is the spread, or the cost of trading. In this example, the expenditure is of three points. On a position of 10,000, a point in the currency pair is worth $ 1 EUR.USD.
Margin / Leverage(learning currency trading)
Foreign currency accounts are limited: a trader can maintain a market position than their account value. The online trading platform that offers FOREXYARD has margin management capabilities, allowing a moderate margin of 0.5% maximum. However, we do not recommend you use a debt levels 10 times your account. Use a level of debt magnifies gains and losses. Even when the market is relatively calm, use a level of debt may generate gains or losses. If a trader exceeds the maximum authorized debt (which can occur when the capital account decreased due to loss during negotiations), the trading system will close all open positions in the account. This will prevent the negative balance accounts, even in a highly versatile, and fast moving.
Example operating margins(learning currency trading)
Since the trader opened 1 lot of EUR 10,000 / USD, his margin requirement or used is $ 50. Usable Margin is the funds available to open new positions or to make up losses during the negotiation. If the equity (the value of his account) fell by 20% margin used under the following losses when trading, its position will be automatically closed. Therefore, the trader can never lose more than he / she deposits.
so now i think the learning currency trading is very fast (:
source : learning currency trading
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