A common type of Account
1. a mini account (a mini lot) with units ranging from 0.1 lot, the recommended minimum capital: above $ 250.leverage: mini 1:200,
2. Regular account (standard account or A regular standard lots) with the unit starts 1 lot, the recommended minimum capital above $ 2500.leverage: regular 1:100.
Market hours
FOREX trading moves continue for 24 hours each weekday (Monday to Friday), anywhere and anytime you can make transactions as long as you are connected to the Internet, this investment is not much time to its management compared with other businesses.
· 04.00 -14.00 pm New Zealand and Australian markets.
· 07.00-16.00 GMT Asian markets of Japan and Singapore
· 14.00-22.00 am European market of German and English
· 19.30-04.00 pm American market.
Leverage or margin collateral
leverage is collateral margin that's given to brokers to buy foreign currency, leverage 1:100 is the system of margin trading which allows you to conduct transactions only $ 100 with a capital of $ 1 or transactions you become 100 times more, leverage can be a double-edged sword, that is: can increase profits and losses, because it is highly emphasized so that you calculate with good capital adequacy and number of lots (quantity) you use, if too large then it is very dangerous! and know when to enter the market and when to exit the market.
Kind of sort of leverage or leverage namely:
· 1:1 means money bail = contract value (100%)
· 1:50 means money guarantee 2% of the value of the contract.
· 1:100 means money guarantee 1% of the value of the contract.
· 1:200 means the guarantee money 0.50% of the value of the contract.
· 1:400 means the guarantee money 0.25% of the value of the contract.
· 1:500 means the guarantee money 0.20% of the value of the contract.
I specify the Quantity
Contained the term "Quantity" where you can do transactions in accordance with your ability, to more easily understand see the example below, using the leverage of 1:100 (1%):
1. If you want to trade with $ 1 then the input value of 100 in the column quantity and value of each point is $ 0.01.
2. If you want to trade with $ 5 then the input value of 500 in the column quantity and value of each point is $ 0.05
3. If you want to trade with $ 10 then the input value of 1000 in the column quantity and value of each point is $ 1
4. If you want to trade with $ 100 then the input value of 10 000 in the column quantity and value per point is $ 10
5. If you want to trade with $ 1000 then the input value of 10 000 in the column quantity and the value of each point is $ 100.
How to read Quotes (FOREX rates)
read the quotes are very easy but if we don’t understand can be confusing, quotes on a regular FOREX transactions in writing along with the pairs and always follow the market changes from time to time (running / real time). strengthening and weakening currencies money, sometimes there are still many people are upside down to read between the strong currency and weak Currencies,if the GBP / USD moves from 1.9000 to 1.9100 price (up), then this means that the GBP / USD has increased 100 points, against each currency, GBP experiencing "strengthening" of the currency, while USD experiencing a "weakening" of the currency, how to read quotes (FOREX rates) is quite easy if we remember two things:
1. The first mentioned currency is the currency of its base (base currency).
2. base currency value is always 1
Example:
· If the GBP / USD = 1.9463 means that 1 GBP = 1.9463 USD.
· If the EUR / USD = 1.2658 means that 1 EUR = 1.2658 USD.
· If the USD / CHF = 1.2450 means that 1 USD = 1.2450 CHF.
· If the USD / JPY = 115.45 means that 1 USD = 115.45 JPY.
· If the USD / EUR = 11 800 means that 1 USD = 11800 IDR.
No comments:
Post a Comment