FOREX TRADING SYSTEM

THE PURPOSE OF FOREX TRADING

The purpose of the investor in the Forex trading is to profit from the movement of foreign currencies. 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" in short. If the investor had bought 1,000 euros at this time, it will pay 1,081 .70 us dollars. One year later, the Forex rate is 1,2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased with respect to the u.s. dollar. Investors are now able to sell 1,000 € to receive 1.208 .30 dollars.

 

 

In trade we can gain/profit of whether the market rises or falls. His way is to analyze currency pairs which would go up or down, and take the difference in profits.

If you believe the currency will strengthen (up) immediately do a buy, then wait for the price to rise, do closed (sell) when these currencies exceed Your purchase price.

If you believe the currency will weaken (down) do the sell position, wait for the price to drop, do closed (buy) when the currency is under Your selling price.

For more details see the illustration below:

1. David Albrecht entered at position BUY EUR/USD at 1.3000, after a certain time

Handoko SELL (CLOSE) 1.3064 then Handoko benefit 64 pips/point (smallest unit in forex)

If the SELL Handoko (CLOSE) of 1.250 then Handoko losses 50 pips

2. Erik entry at position SELL GBP/USD at 1,500, after a certain time

Erik BUY (CLOSE) at 1,400 then Erik 100 pip profit/point (smallest unit in forex)

If Erik BUY (CLOSE) at 1,650 then Erik losses 150 pips

From the example above looks that you can profit in two ways. Live how the placement of your initial position.

Note, if you look at metatrader application (application of forex) then:

* The prices used during OPEN BUY/LONG is the purchase price (ASK) and the prices used when you close/liquid is the selling price (BID).

* The price is used when OPEN SELL/SHORT is the selling price (BID) and the prices used when you close/liquid is the purchase price (ASK).

HOW DO TRADING?

Forex trading is usually done through brokers or market makers. As a forex trader you can choose the currency pair that You want to buy/sell or trade.

With the development of internet technology, reservations and requests the transaction can be done with just a few clicks from your computer, and brokers to become your business partner. When you close a trade, brokers close a position in the interbank market and credit your account with a loss or a profit. All of this can happen within seconds.

TRADING RISK

Is it true that forex is it scary? Trading in this market is very risky and should not be attempted by novices 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 gain an advantage and you can easily lose money anyway