FOREX (Foreign Exchange)

The Calculation of profit and loss
1. For currency direct or USD is located behind
Example: EUR / USD, EUR / USD, GBP / USD, NZD / USD
Formula: profit / loss = (position close - open positions) x Quantity
2. For indirect currency or USD is located in front
Example: USD / JPY, USD / CAD, USD / CHF
Formula: profit / loss = 
(position close - open position) x Quantity
                     Position close
3. For the cross currency rates that are not common or comparable with the USD
Example: USD / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / AUD, EUR / GBP, EUR / JPY, GBP / AUD, GBP / CHF, GBP / JPY, NZD / JPY.
• If the counter currency direct type, for example: EUR / AUD, EUR.GBP, GBP / AUD
Formula: profit / loss = (position of close-open position) x Quantity
• If the manifold indirect currency counter, currency counter, which was behind the JPY and CHF are indirect, for example: EUR / JPY, CAD / JPY, CHF / JPY, GBP / JPY, EUR / JPY, GBP / CHF, GBP / JPY, NZD / JPY.
Formula: profit / loss = 
( Position Close - Position open ) x Quantity  
                       Position close
Glossary of terms in the online FOREX trading
• Lot is a unit of the contract on each transaction, 10,000 units in FOREX commonly called a lot, so all transactions are calculated based on units of this lot. 1 lot, 2 lots, 3 lots, and so forth, meaning 20,000 2 lots of currency, depending on the currency purchased / sold.
• Quantity contract size (value of the contract) that the actual number traded in the market, Contract size is usually determined by lot, namely: 1 lot = unit value of the contract: 10,000 or 100,000.
• Pips is a unit commonly used in naming the value of an exchange or so-called "points"
• Spread is the difference between selling price and buy because for every two pairs show the price at which the purchase price (bid) and selling price (offer)
• Floating is when the price position we have not been in close (in liquid to be realized) and still in a position to move in the market expands.
• Balance the amount of money that has been realized or that have been in close (not calculated by the position of floating profit / loss if any)
• Equity is the amount of money you are after is calculated with floating profit or loss
• Margin of total use margin (collateral) you in accordance with the total number of orders that are running (open position)
• Free margin is the margin the rest of you can use to order, if you still have a floating position for withdrawal, then you are biased pick from the remaining money in the free margin
• Margin is a percentage level of equity versus your margin (margin levels are also useful for determining the margin call (total loss) in your endurance, if this level of margin drop below 5% then you will be a total loss or run out of money
• Buy can also be paired with a bid or long and fitted with the offer or sell short, or ask
• Buy stop buy order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at that point will be installed automatically buy, with the hope that the graph can be moved up again in order to gain profit.
• Sell stop order sell below the reserve price is now underway, with expectations if the market price moves down a little market price points that our message, then at that point will be installed automatically sell with the hope that the graph can move down to profit
• Buy limit order buy order that is below the price now underway, with expectations if the market price moves down a little market price points that our message is then at point will be installed automatically buy in the hope that after that the graph can be moved up in order to profit.
• Sell limit sell order above the reserve price is now underway, with expectations if the market price moves up a little market price points that our message is then at point will be automatically installed after the sell with the expectation that it can move down the chart in order to profit
• Fast market / hectic / volatile market is a very significant market movements and can cause prices to move very fast and the price jumps occur, this is usually caused by an important news or anything else that can cause a very high movement in the market, and when you order hectic when slippage is likely to occur (price missed) or delay, REQUOTE (request repeatedly re-order price for adjustments) and the buying and selling price spreads that can widen a while, because they have to adjust with the market price is moving fast.
• Slippage is a condition in which order we raced as far as some of the points from the point that we order, this happens because the price jumps due to market volatility or a hectic / fast market, it usually happens for trapping techniques (stop buy, sell stop) is too close when an important news event (big new)
• whipsawed is the currency movements are only cheating or not show the actual trend.
• Take profit (TP) is to target your profits
• Stop loss (SL) is to limit your losses or cut losses, cut losses is the act of closing the position being in a loss to avoid losses more
• Switching is if we close a position (cut loss) that is being lost and contrary to our predictions and then open a new position following the position of the price moves against the position of a second profit expectation is greater than the first position that has been cut loss by opening a second position which contrary to the first position when the prediction gain exceeds the loss of the first position to be closed, if it turns out the price changes according to the first prediction, then you will suffer a loss twice, the first position and second position.
• Averaging is opening another new position in the direction of the old position even though the current price moves in the opposite or same direction as the belief that prices will move in accordance with our predictions, averaging taken when we believe that the price changes that occur will be changed again according to the original predictions.
• Hedging (protection of value) means that we are opening two opposite positions so that even if the price goes up or down the value of the floating remains the same thus protecting the position held, hedging, or locking the term is taken because we use this technique when we locked position so that the value gains and losses are always move hand in hand.
• Cross hedging means we opened two opposing positions on different currency pairs but still allied, allied intent here is the trend of movement of the two currency pairs tend to be the same as: GBP/USD with EUR/USD, AUD/USD, NZD/USD.

FOREX (Foreign Exchange)

        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.

FOREX (Foreign Exchange)

Forex trading in online is 100% tax-free and legal according to law the government and religion, there are many FOREX brokers who deliver overnight interest rate (to stay) for Muslim traders, usually you can just provide the data yourself that you are a Muslim and will receive interest-free facility, trading FOREX also not gambling, because FOREX trading can be analyzed in real time, besides that it's also FOREX equals trade in general and only differ in the object, the FOREX object is a currency,while the object in a general trading is a goods or services, FOREX trading is different from gambling containing elements of profit miss with a high risk,and have no economic function for the welfare and benefit society in general,online FOREX trading can mean, like you exchange money at the money changer by exploiting the difference in exchange rates selling price of purchasing, who frequently traded currency is US dollars (USD), Canadian dollar (CAD), New Zealand dollar (NZD), Australian dollar (AUD ), Japanese yen (JPY), Swiss franc (CHF), British pound sterling (GBP) and euro (EUR) currency pair (pair) are traded are:

1.       AUD/USD                      : called Aussie dollar

2.       AUD/JPY                      : called Aussie yen

3.       CAD/JPY                       : called Canada yen

4.       CHF/JPY                       : called Swiss yen

5.       EUR/AUD                      : called Euro Aussie

6.       EUR/CHF                       : called Euro Swiss

7.       EUR/GBP                      : called Euro sterling

8.       EUR/JPY                      : called Euro yen

9.       EUR/USD                       : called Euro dollar

10.   GBP/AUD                      : called Sterling Aussie

11.   GBP/CHF                       : called Sterling Swiss

12.   GBP/JPY                      : called Sterling yen

13.   GBP/USD                       : called Cable

14.   NZD/JPY                      : called New Zealand yen

15.   NZD/USD                       : called New Zealand dollar or kiwi

16.   USD/CHF                       : called Dollar Swiss or Swissy

17.   USD/CAD                       : called Dollar Canada or C-dollar

18.    USD/JPY                       : called Dollar yen

Foreign Exchange Prices

Foreign exchange markets and prices are mainly influenced by international trade flows and investment flows. The Forex markets are also influenced, but to a lesser extent, by the same factors that influence the equity and bond markets: economic and political conditions especially interest rates, inflation, and political instability. Those factors usually have only a short-term impact, which makes Forex attractive as it offers some of the diversification necessary to protect against adverse movements in the equity and bond markets.

Currencies are usually quoted to four decimal places, such as the Euro/US Dollar trading at 1.2400/1.2403, with the last decimal place referred to as a point or "pip". A pip for most currencies is 0.0001 of an exchange rate; the one exception is the USD/JPY quote in which each pip is equal to 0.01.

The Forex market operates 24 hours a day through an electronic network of banks, corporations and individual traders. Forex trading begins every day, The major market makers, or dealers, consist of the commercial and investment banks, the exchange traded futures, and registered futures commission merchants. Our dealing desk is open 24-hours a day from Sunday 17:00 EST to Friday 17:00 EST.

System Requirement

The following are the minimum technical requirements to be able to run an online FOREX trading platform:

v Processor  1 Ghz

v Memory  RAM 256

v Hard drive 20GB

v Line Internet 56 kbps, we recommend using broadband such as ADSL line from telkom (speedy) or from another ISP with a capacity of more than 300kbps.

v Windows XP

what if the computer dies or disrupted internet connection ? if your computer is off or not connected to the internet then all orders will be automatically stored in the server broker from market of this (market), so even if your computer is turned off then order you can still run and executed automatically based on your position,

v take profit

v stop loss

v limit buy

v sell limit

v buy stop

v sell stop, and pending orders you have previously set.

Choosing a FOREX broker

to run a FOREX trading you need the services of a company called FOREX brokerage firms, there is a local company and there are also foreign companies, the difference in available foreign brokerage contract size 10,000 and 100,000 while Indonesia is only available on contract size just 100,000, the contract size100.000 minimum funds invested must be above $ 3000, while in many overseas brokers who require only $ 250 for the transaction, the decision to vote no on yourself, because you will bear the risk of profit and loss, in a FOREX investment legality problem is very important, to prevent fraud or problems of default by a brokerage firm to the customers, before you choose your broker should ensure the legality of the company, know the location of the office a clear position and address,has a media clear contact such as telephone, management structure and ownership, if you choose a local brokerage in Indonesia for example, check whether the broker is registered in BAPPEBTI (commodity futures trading regulatory body), BBJ (futures exchange Jakarta), and KBI (clearing futures Indonesia), so as to have permission to overseas transactions and have segregated account numbers, separate accounts are useful to accommodate all clients' funds are invested so as not to be utilized by any party, including brokers concerned. if you select an online FOREX broker / overseas check whether they are registered in each country's official agency where the broker is an example: FSA (The Financial Services Authority) to a broker in the UK, the CFTC (Commodity Futures Trading Commission) and NFA (National Futures Association ) to a broker in the United States, if they permit is still in the process that means they don't have permission, you can bet they are illegal FOREX broker's big risk for your fund (unpaid), licensing is required to oversee and ensure that the brokerage firm is a company a clear and believable.choose a company that obviously, bode clearly,has been operating the old and the status of legal / regulated (licensed full and not just a PO BOX or unclear) stay away from the mere promise big bonuses, but eventually you will "be eaten" high priority and security, not "discount broker "because the bonus will not be comparable with the losses you will suffer later, you can open a FOREX account in the following brokers:    

1. ASIAFXONLINE
2. EASY FOREX  
3. GAINSCOPE
4. GAIN CAPITAL 
5. MARKETIVA

FOREX (Foreign Exchange)

Forex trading is a kind of a trade or transaction currency of two country whose values ​  change every time,currency values ​​that's change between the two countries that has became the basis of obtaining  trading profit,Forex trading an investment in the sector financial are classified as the high risk-high return investment,if you don't like risk then Forex trading isn't suitable for the type of your investment, this is because Forex trading is an investment that has a very rapid movements in liquidity as well as the movement of price.
the logically, Forex trading can bring you earn a profit of tens to hundreds of percent in one day but it can also bring you lose the same amount.
if you are a risk taker, then the Forex trading is the type of investment that fits with you, in the sense to earn large profits, so he must be ready to bear the potential losses that large equal,but we can minimize the potential risk loser,with risk management and analysis capabilities is a good key to avoid losses.

if you run the risk management and analyze the movement of market prices,can smaller the potential loss that can ensue,because Forex is a business that requires patience, practice analyzing the market, and risk management,if you often more practice,you will be more proficient in analyzing market, you will not work for money,but money will work for you.

continue to learn and Increase your knowledge in Forex trading, learn strategies from forums and other traders, learn money management, trading psychology, and others, although you always succeed in your trading.
for Forex trading, make sure the funds you invest more funds that are unused because if you lose that investment funds will not disrupt the stability of your life, because Forex trading has the possibility of losing funds 100%. in trading used at most 10% of the equity you have, for example money in your account is US$ 2000, use at most US$ 200 for trading, the remaining US$ 1800 to keep your capital, if the price moves in the opposite direction lest your margin is close to zero,because if it reached zero all your open positions one by one will be closed automatically or forcibly exposed to margin calls by brokers, that means you will lose big if the funds / margin isn't sufficient.
Always use a stop loss facility (cut loss) and the limit to limit the losses and gains, stop loss to limit losses that might occur in our position when things go wrong in predicting price movements so as not to cause even greater losses, with no set stop loss then all your funds will be depleted due to a margin call, always put a stop loss of 2% or a maximum of 5% of the equity to limit losses, for example, if the money in your account is US$ 2000 put a stop loss of 2% (40 points) or below it depending on the risk management you and a maximum of 5% (100 points). while the limit is useful to determine at what price we want to take profits.
use the facility demo account for sufficient period of time before starting the real account, until you feel proficient and ready to real accounts, demo accounts provided by brokers with the goal of providing an opportunity for you to learn Forex trading with virtual money but with the actual values ​​just like trading FOREX real, on a demo account you will be given a large sum of money in order to perform sell-purchase or any other facility in provided a platform,select a trading strategy that suits you, first test (back test) with a demo account for a month, see the results whether to give a high probability profit or even loss probability is very large, the key to success in trading is, patience and discipline to the strategy that you have believed, avoid self-aggrandizement, fear, and sense of impetuosity to immediately avenge the defeat.