This article was made to give traders all the things that could enrich their trading experience, not only in the form of trading services, but also in the form of educational materials and devices. Forex tutorial This is the initial stage should be controlled by the new forex traders, and we make it happen through tutorials and articles of options, which include a range of topics that we consider essential to any forex trader agenda.
What is Forex Trading?
Before we begin to explain what is meant by trading forex, we will notify forex briefly in the context of history.
Basically the Forex Exchange market, or foreign currency exchange markets or commonly referred to as the foreign exchange market, born along with the Gold Standard Monetary System in 1875. This system determines the exchange rate of each country against the value of one ounce of gold. Gold prices always fluctuate against the value of the currency, and this led to a system of currency exchange.
World War II marked the end of the Gold Standard Monetary System and the birth of a new system in lieu namely Bretton Woods system. This new system was implemented in 1944 and made the US dollar as the primary reserve currency in the world. but this system did not last long and ended in late 1971. In 1976, the Foreign Exchange markets are emerging and introduced modern currency exchange rate float. In the mid 1990s, forex trading started to get into the electronic world and is still used today.
ago What makes this market so special? because the market is very accessible, does not recognize geographical boundaries, is available in 24-day and 5 days a week, and is the most liquid market in the world.
When trading in the forex market, there is one simple philosophy - when trading in this market, you buy a currency whose value is predicted to rise (long position) and selling currencies whose value is predicted to decline (short position). You can do this prediction using a variety of popular trading tools, but there is always an element of risk of trading in it. If the value of a currency that has been purchased is not climb as had been predicted, you can sell it and make a profit, but if the value goes down, you will lose. You do not have to be a financial expert to be a good trader, forex trading is very easy to learn if you want to try it.
When will we be able to enter the market? Broker brings buyers and sellers together to the market: we scan and offer a bid (offer) and ask (demand) the best to all traders. In the forex market, we are intermediaries who can help work on your transaction.
Asian session
22:00 GMT - 09:00 GMT
After the weekend, the first activity starts from the Asian market. Australian market starting at 22:00 GMT and ends at 09:00 GMT. Some countries were active during the session underway are China, Russia, New Zealand and Japan.
European Session
08:00 GMT - 17:00 GMT
Currently, the Asian session was ending, the activity began in the European session with a time overlap for 2 hours. The main markets in this session is the London market with other important markets in Europe such as Germany and France. Activity in this session begins at 08:00 GMT and ends at 17:00 GMT.
American session
13:00 GMT - 22:00 GMT
In the middle of the European session, at 13:00 GMT, the US market begins and ends at 22:00 GMT. New York is the largest participant in the session. After the session ended, there was a brief period of silence before the Asian session restarted.
In this article we will tell an experience to you. This story will show that the basics of the forex industry actually not so difficult to understand.
This is a story about the experience of a professional trader Tyo skycool is an employee in the company. At that time, she has savings of 800 euros and would like to open new accounts in US dollars. When opening a bank account, his 800 euro equivalent of 1,000 US dollars.
A few weeks later, Tyo skycool read the financial news on his laptop, and he saw that the euro has strengthened against the US dollar. This means that savings have increased his property, and he thinks this is a good opportunity to take advantage. Unfortunately, it was already late and banks were closed, so Tyo skycool decided to stop by the bank after work the next day. At the time of the day, the euro slumped and now Tyo skycool felt useless if withdraw their money now. Tyo skycool had missed the opportunity to capitalize on this opportunity.
In the evening, Tyo skycool went with colleagues for dinner. Topics for discussion at the time was Forex (or foreign currency exchange). One of his friends, Isabelle, recounted his experience in the world of forex trading. Tyo skycool is very interested in what they told her, so she decided to find out more.
Through the internet, Tyo skycool find a forex broker. After knowing what the brokers have to offer, he decided to open an account. With this account, he found opportunities remarkable.Tyo skycool is only a deposit of $ 1,000, but because there LEVERAGE in his account, he now has the potential to transact up to 500,000 dollars. Leverage is used to increase the purchasing power and the potential risk of loss with just a bit of funds. One day the value of the dollar rose, and to do Tyo skycool is entered into the trading account and sell his dollars. He was very pleased with the gains as the market moves in the direction he wants, otherwise he would accept losses.Tyo skycool learn everything about forex trading. He started with FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS and to determine and predict the direction of market trends. Technical analysis is the study to follow the trend towards using graphs, whereas fundamental analysis is the study of various economic and political indicators that may affect the market price. All this information is available on the website broker that he had chosen.
Because market conditions are always changing, sometimes Tyo skycool discovered bearish or bullish OUTLOOK . When he felt would happen bearish or asset value will fall, so he opened SHORT POSITION, where he sold the asset. And at different times, when Tyo skycool was going to happen bullish, so he opened LONG POSITION, because he predicts that the value of the assets would go up so he bought it.Tyo skycool is very lucky because the options broker offering low SPREAD. Spread is the difference between BID PRICE (the maximum price that can be paid by the buyer for an asset) and ASK PRICE (price to be received by the seller to obtain an asset). The lower the spread offered, the less will be the cost charged by the broker.Tyo skycool continues to do forex trading for many years. He already had a variety of experiences, both profit and loss have him get. Sometimes he made mistakes and miscalculations, and at different times he also received a very large profit.
Forex broker with High Leverage
The simplest way to explain leverage: leverage providing the ability to transact in larger quantities with little funding, or in other words increasing the purchasing power of traders. Leverage is displayed in the form of a ratio / ratio, for example 1: 1000, this means the trader purchasing power increased by up to 100-fold, so that if a trader to deposit € 1,000 broker will adjust this value to € 1 000 000. High leverage provides an opportunity that has never been previously owned. Trader with small capital to maximize profit to be achieved with a high leverage. However, as with the maximum profit potential, the potential losses will rise, so the leverage should be well regulated and should not be used continuously, especially for those who do not need it.
Fast execution
When you trade in a market that moves very quickly, as the forex market, it is very important to choose a broker who can execute pertransaksian in a fast and efficient. Delays in order execution can cause problems ..
Regulated Forex Broker
This may sound very simple, but you may be surprised to see how many forex brokers that are not regulated. Best forex broker is a broker that is already regulated and supervised by the local authorities or international. Without regulation, the broker can do anything they want, and this can cause some unpleasant problems for traders. To feel safe, choose a broker you can trust. select broker Following the rules and standards is an important sign that the broker is considered a very serious trading.
Forex Brokers with Low Spreads
What is it spread? If you look at the price bid (offer) and ask (demand) of a currency pair or other assets, and you calculate the difference of the two prices, that is what is meant by the spread. If the spread offered by the forex broker is very high, this is a bad thing. Many brokers are taking advantage by attracting higher spreads, so choose a broker with low spreads.
Some Different Account Types
A wide choice of account type is an added value. Different types of traders, therefore, the broker should be able to offer a wide selection of types of accounts that can serve them in terms of the aspirations, needs and financial capabilities. Best forex brokers can realize that liberty is the important thing - the trader will respond freedom, not a limitation.
Demo Account for novice forex traders
Trading on a demo account is very important before the start of trading on a live account. Choose a broker who offers a demo account, due to trading in a demo account, you can trade in real conditions but with virtual money, so it is completely free of risk. This is the best way to get to know the intricacies of trading in the forex markets and test your trading strategies. You can find the strength and weaknesses as a trader, and please begin trading on a live account if it feels confident and ready.
Various Instruments Trading
As mentioned earlier, traders are not happy with limitations. A growing number of trading instruments offered by the broker, the greater the opportunities to be gained. Choose a broker that offers not only the major currencies, but also minor, exotic, precious metals and other commodities. For example gold, these instruments are very popular at the time of economic and political instability.
Reliable Trading Platform
The best forex broker will offer the best trading platform as well. Reliable trading platform will provide access to technical analysis and fudamental, a good security system, automated trading, and has a display graphs and charts that are easy to use. Standard cutting edge platform is MetaTrader 4 and MetaTrader 5
Automated Trading
Automated trading, algorithmic trading or, can give a huge advantage. A trader can implement its strategy or adopt strategies other traders in several trading platforms that have the software to do automated trading, then the platform will make trades automatically in accordance with the strategy that has been inserted. One example of this software in the platform MetaTrader 4 is the Expert Advisors. The advantage of using automated trading is that you do not need to observe motitor any time and wait for an opportunity to enter the market, because these opportunities will be captured by automated trading systems. Keep in mind, even if the system is working in accordance with the strategy you've developed or adopsikan, the risk of loss or profit is always there.
Deposit and Withdrawal
For the benefit and convenience, it is important to choose a broker that offers methods of depositing and withdrawing funds quickly and easily. Deposit instant funds to support your positions or take advantage of the opportunities may appear suddenly in the market. In other cases, if you want to withdraw the funds for whatever reason, then the withdrawal process should be fast and easy, so that the funds can be obtained in a short time and no more than a few days.
Aggregate Risk
Aggregate risk when a bank or financial institution is bound in forex contracts with a single customer.
Ask
The price agreed trader to buy a financial asset.
Asset
One item or resource that has value
Bank Rate
Interest rates, the interest rate used by the central bank of a country when it lends money to domestic banks in the country.
Base Currency
The base currency, the currency pair, the first currency in the pair is referred to as the base currency. For example, the pair USD / JPY, USD is the base currency (base currency).
Bear Market
Sluggish market, when the price of financial instruments, assets, or a particular market is declining.
Bid
The price of the targeted traders to sell a financial asset.
Bull Market
Up market, when the price of financial instruments, assets, or a particular market is increasing rise.
Buy Limit Order
Command to perform a transaction at or lower than a certain price, the word 'limit' indicates that a specific price.
Carry Trade
When investors borrow at low interest rates so that they can buy assets that will likely result in higher interest rates.
Closed Position
When a trading position is closed, it means that the transaction has been resolved - whether long or short positions or transactions that benefit or cause harm.
Closing Market Rate
Closing market prices or also known as closing price (closing price), this is the last price when a financial asset traded on a particular day or time period.
Currency Appreciation
Currency appreciation, when a currency to rise in value compared with other currencies.
Currency Basket
A group of certain currencies that make up the weighted average value that can serve as a measure to assess an obligation.
Currency Futures
A contract that specifies the price of a currency that can be bought or sold on a certain date in the future. Futures contracts are often used by investors as a hedge against the risk instrument.
Currency Pair
The pair formed by two different currencies traded in forex transactions. Example: EUR / USD.
Daily Chart
Daily chart, a graph illustrating the daily movement of a financial asset.
Day Trade
Trade (trade) whose position is opened and closed in one day
Demo Account
Demo, funded trading account with virtual money (false), giving traders the opportunity to know the market and tested the trading platform they use before investing real money into a live trading account or a real account.
Depth of Market
Market depth, number of open orders to buy and sell a financial asset at various prices.
Drawdown
When the value of an investment falls, the distance or the difference between the highest peak and the lowest base is referred to as drawdown.
ECN Broker
Brokers who use Electronic Communication Networks or Electronic Communications Networks (ECN) to provide direct access to the clients to the liquidity providers.
Exchange Rate
Exchange rate or the exchange rate of a currency which can be exchanged with another.
Execution
Execution, when a trade is executed and completed transactions.
Exposure
Exposure, it indicates the amount of investment in a financial asset that is vulnerable to market risk.
Fill
Completion or execution of a transaction order.
Fill or Kill
When an investor wants to make a transaction at a price that is very specific, they gave the order Fill or Kill - meaning that if the order can not be fulfilled (filled) at the desired price, the order is canceled (killed).
Fill Price
The price at which a transaction order has been fulfilled or implemented.
Floating Exchange Rate
Floating exchange rate, when the value of the exchange rate is not specified, but the adjusted depending on supply (supply) and demand (demand) of a particular currency relative to other currencies.
Forex Chart
Forex chart is the digital charts depicting price movements of currency pairs to assist the investor in taking the right decision.
Forex Scalping
Trading strategies are based on the assumption that if you buy and sell (or sell and buy) a currency in a very short period of time, you will most likely benefit than if you wait for large price movements.
Forex Signal System
Forex signal system, a system that gives a signal to traders to help them decide when to buy or sell a currency pair.
Forex Spot Rate
The current exchange rate where the currency pair can be bought or sold.
Forex Trading Robot
This is an automatic trading software designed to help make a decision right time to buy or sell a currency pair at any given moment.
Fundamental Analysis - Fundamental Analysis
Economic or political events influence on prices in the financial markets (interest rate announcement, the number of unemployed, and others)
Hedge
Protection of value, investors take advantage of hedging to protect themselves by reducing the risk that may be posed by adverse market movements. Protection of value investing means doing two opposite and offset each other, so as to minimize the losses that may occur as a result of price fluctuations.
Interbank Rate
Interbank interest rates, the interest rates charged for short-term loans between banks.
Leverage
Leverage offered brokers to maximize the purchasing power of traders by giving them the opportunity to deposit funds in small amounts so that they can trade in large volumes. The leverage is expressed as a ratio, so if for example a leverage of 1: 100, then the purchasing power of traders increased 100-fold.
Limit Order
Command to perform a transaction at a specified price or better.
Limit Price
The price specified in the Limit Order
Liquidity
Trading volume in the market for a particular currency pair.
Long Position
Long position, take a long position on a currency means you buy it. In a currency pair, you buy the first currency (base currency / currency basis) in the pair.
Lots
One lot is the size of a standard quantity of the instrument you are trading. In forex, one lot is 100,000 units of a currency.
Margin
This is the amount of money required in your account to maintain a trading position remains open.
Margin Call
This is a notification that will alert you to deposit some money into your trading account so that the available margin sufficient to maintain existing trading positions remain open.
Mark-to-Market
The value of an open position in case of a trade position was closed at the current market price.
Market Order
An order for immediate transactions directly executed or executed at the best available price.
Market Rate
Current quotations in a currency pair.
Micro Lot
Micro lot is 1000 units of the base currency (base currency) in the currency pair.
Middle Rate
The middle rate, the price is exactly halfway between the bid (offer) and ask (demand).
No Dealing Desk
When the trader has direct access to the interbank market and no dealing desk involved in their transactions.
Open Position
The position taken in the currency pair which can bring profit or loss.
Over the Counter
The traditional way of forex trading is 'over the counter', namely traders do forex transactions via telephone or electronic device.
Overnight Position
Overnight position, when the trader's position remained open and continued to trade the next day.
Pip
Pip is Percentage in Point (in percentage points) and is the smallest price change that can be seen on the exchange rate. Generally on the currency pair specified in 4 decimal points and the smallest change that can be seen on the last digit.
Profit Taking
Take Profit, close a trading position to take advantage.
Quote Currency
Second currency of the currency pair known as the quote currency (quotation currency). Examples of EUR / USD, USD is the quote currency.
Regulated Market
Regulated market is a market that is governed by the rules of the existing legislative and regulatory functions to protect investors.
Resistance
The resistance, the price level at which a stock or currency difficult to break through to a higher level and eventually began to turn down.
Risk Management
Risk Management, tools and strategies as much as possible the trader to limit financial risk.
Rollover Rate
In forex, rollover interest rate is the rate that must be paid or accrued by the trader when they leave (rollover) trade positions remain open until beyond the night.
Round Trip
Shows the total amount of funds spent on opening and closing of a trading position.
Slip page
This occurs when a command is executed or a transaction executed at a price that is different from the expected price of the trader. This usually happens in a period of trading with high volatility, when traders use transactions command a market order and the stop loss order.
Soft Currency
A currency that is sensitive to economic and political events so that the fluctuating high and generally unstable.
Speculator
A trader who take high risks by selecting trading financial instruments are at high risk in the hope of obtaining a high level of profit as well.
Spike
Price movements are sudden rises or falls sharply increased and occurs in a very short period of time.
Spread
The difference between the ask and bid prices of a currency pair.
Stop Loss Order
Orders to buy or sell the currency when the specified price has been reached. This command is done to limit the loss of a trading position.
Order Take Profit (T / P)
An order to close a trading position when it has reached a certain price with the aim of taking advantage.
Technical Analysis
Traders use technical analysis to predict price movements by studying historical data market through the use of charts and trading indicators.
Volatility
Volatility, this shows the level of uncertainty resulting from fluctuations in the price of a currency pair or certain financial assets.
Yield
Yield is the return on an investment and is usually expressed as a percentage The following variety of options leading forex trading platform MT4 and MT5 for PC, MAC, mobile phone, or tablet, so you can trade comfortably wherever and whenever
The latest technology combined with the services of MetaTrader trading of the latest Forex broker
Forex Web Trader you can enjoy all the facilities of your MT4 platform and gain direct access to the market through your browser. Do not need to download or installation process is long and supports all modern browsers. Forex Web Trader puts you as a control on forex trading easily and efficiently. The advantage:
What is Forex Trading?
Forex Trading History
Before we begin to explain what is meant by trading forex, we will notify forex briefly in the context of history.Basically the Forex Exchange market, or foreign currency exchange markets or commonly referred to as the foreign exchange market, born along with the Gold Standard Monetary System in 1875. This system determines the exchange rate of each country against the value of one ounce of gold. Gold prices always fluctuate against the value of the currency, and this led to a system of currency exchange.
World War II marked the end of the Gold Standard Monetary System and the birth of a new system in lieu namely Bretton Woods system. This new system was implemented in 1944 and made the US dollar as the primary reserve currency in the world. but this system did not last long and ended in late 1971. In 1976, the Foreign Exchange markets are emerging and introduced modern currency exchange rate float. In the mid 1990s, forex trading started to get into the electronic world and is still used today.
Modern Forex Trading Market
Forex trading market is the international financial markets, in which one currency is exchanged for another currency. Both individuals and institutions can buy a currency of a country, and paid for it with other currencies. So a company in New York can import various products of the company in Rome, and pay for such products in euros and not in US Dollars. System conversion from one currency to another currency is facilitated by the International Trade and Investment program.ago What makes this market so special? because the market is very accessible, does not recognize geographical boundaries, is available in 24-day and 5 days a week, and is the most liquid market in the world.
When trading in the forex market, there is one simple philosophy - when trading in this market, you buy a currency whose value is predicted to rise (long position) and selling currencies whose value is predicted to decline (short position). You can do this prediction using a variety of popular trading tools, but there is always an element of risk of trading in it. If the value of a currency that has been purchased is not climb as had been predicted, you can sell it and make a profit, but if the value goes down, you will lose. You do not have to be a financial expert to be a good trader, forex trading is very easy to learn if you want to try it.
When will we be able to enter the market? Broker brings buyers and sellers together to the market: we scan and offer a bid (offer) and ask (demand) the best to all traders. In the forex market, we are intermediaries who can help work on your transaction.
Forex Trading Sessions
The forex market never sleeps, it is because of the ongoing activities at any time throughout the world. There are three sessions that can be used by traders to trade in this market whenever they want, without the need to pay attention to the time and place.Asian session
22:00 GMT - 09:00 GMT
After the weekend, the first activity starts from the Asian market. Australian market starting at 22:00 GMT and ends at 09:00 GMT. Some countries were active during the session underway are China, Russia, New Zealand and Japan.
European Session
08:00 GMT - 17:00 GMT
Currently, the Asian session was ending, the activity began in the European session with a time overlap for 2 hours. The main markets in this session is the London market with other important markets in Europe such as Germany and France. Activity in this session begins at 08:00 GMT and ends at 17:00 GMT.
American session
13:00 GMT - 22:00 GMT
In the middle of the European session, at 13:00 GMT, the US market begins and ends at 22:00 GMT. New York is the largest participant in the session. After the session ended, there was a brief period of silence before the Asian session restarted.
Forex Basics
When you enter the world of forex for the first time, it may make you become confused. New concepts, new theories and new terms that may be somewhat complicated and yet you understand
In this article we will tell an experience to you. This story will show that the basics of the forex industry actually not so difficult to understand.
This is a story about the experience of a professional trader Tyo skycool is an employee in the company. At that time, she has savings of 800 euros and would like to open new accounts in US dollars. When opening a bank account, his 800 euro equivalent of 1,000 US dollars.
A few weeks later, Tyo skycool read the financial news on his laptop, and he saw that the euro has strengthened against the US dollar. This means that savings have increased his property, and he thinks this is a good opportunity to take advantage. Unfortunately, it was already late and banks were closed, so Tyo skycool decided to stop by the bank after work the next day. At the time of the day, the euro slumped and now Tyo skycool felt useless if withdraw their money now. Tyo skycool had missed the opportunity to capitalize on this opportunity.
In the evening, Tyo skycool went with colleagues for dinner. Topics for discussion at the time was Forex (or foreign currency exchange). One of his friends, Isabelle, recounted his experience in the world of forex trading. Tyo skycool is very interested in what they told her, so she decided to find out more.
Through the internet, Tyo skycool find a forex broker. After knowing what the brokers have to offer, he decided to open an account. With this account, he found opportunities remarkable.Tyo skycool is only a deposit of $ 1,000, but because there LEVERAGE in his account, he now has the potential to transact up to 500,000 dollars. Leverage is used to increase the purchasing power and the potential risk of loss with just a bit of funds. One day the value of the dollar rose, and to do Tyo skycool is entered into the trading account and sell his dollars. He was very pleased with the gains as the market moves in the direction he wants, otherwise he would accept losses.Tyo skycool learn everything about forex trading. He started with FUNDAMENTAL ANALYSIS TECHNICAL ANALYSIS and to determine and predict the direction of market trends. Technical analysis is the study to follow the trend towards using graphs, whereas fundamental analysis is the study of various economic and political indicators that may affect the market price. All this information is available on the website broker that he had chosen.
Because market conditions are always changing, sometimes Tyo skycool discovered bearish or bullish OUTLOOK . When he felt would happen bearish or asset value will fall, so he opened SHORT POSITION, where he sold the asset. And at different times, when Tyo skycool was going to happen bullish, so he opened LONG POSITION, because he predicts that the value of the assets would go up so he bought it.Tyo skycool is very lucky because the options broker offering low SPREAD. Spread is the difference between BID PRICE (the maximum price that can be paid by the buyer for an asset) and ASK PRICE (price to be received by the seller to obtain an asset). The lower the spread offered, the less will be the cost charged by the broker.Tyo skycool continues to do forex trading for many years. He already had a variety of experiences, both profit and loss have him get. Sometimes he made mistakes and miscalculations, and at different times he also received a very large profit.
How Choosing the Best Forex Broker
The first and most important step that needs to be known by the forex trader is to find and choose a forex broker who can be trusted. In this business, the broker is an integral part in trading, and they constitute a major business partner of all forex traders, therefore traders should be able to choose the best forex broker available. Choosing an appropriate and reliable broker is very important, because you need to choose a broker that can meet the goals and needs as a trader. To be able to choose correctly, you are several factors to be considered.
Forex broker with High Leverage
The simplest way to explain leverage: leverage providing the ability to transact in larger quantities with little funding, or in other words increasing the purchasing power of traders. Leverage is displayed in the form of a ratio / ratio, for example 1: 1000, this means the trader purchasing power increased by up to 100-fold, so that if a trader to deposit € 1,000 broker will adjust this value to € 1 000 000. High leverage provides an opportunity that has never been previously owned. Trader with small capital to maximize profit to be achieved with a high leverage. However, as with the maximum profit potential, the potential losses will rise, so the leverage should be well regulated and should not be used continuously, especially for those who do not need it.
Fast execution
When you trade in a market that moves very quickly, as the forex market, it is very important to choose a broker who can execute pertransaksian in a fast and efficient. Delays in order execution can cause problems ..
Regulated Forex Broker
This may sound very simple, but you may be surprised to see how many forex brokers that are not regulated. Best forex broker is a broker that is already regulated and supervised by the local authorities or international. Without regulation, the broker can do anything they want, and this can cause some unpleasant problems for traders. To feel safe, choose a broker you can trust. select broker Following the rules and standards is an important sign that the broker is considered a very serious trading.
Forex Brokers with Low Spreads
What is it spread? If you look at the price bid (offer) and ask (demand) of a currency pair or other assets, and you calculate the difference of the two prices, that is what is meant by the spread. If the spread offered by the forex broker is very high, this is a bad thing. Many brokers are taking advantage by attracting higher spreads, so choose a broker with low spreads.
Some Different Account Types
A wide choice of account type is an added value. Different types of traders, therefore, the broker should be able to offer a wide selection of types of accounts that can serve them in terms of the aspirations, needs and financial capabilities. Best forex brokers can realize that liberty is the important thing - the trader will respond freedom, not a limitation.
Demo Account for novice forex traders
Trading on a demo account is very important before the start of trading on a live account. Choose a broker who offers a demo account, due to trading in a demo account, you can trade in real conditions but with virtual money, so it is completely free of risk. This is the best way to get to know the intricacies of trading in the forex markets and test your trading strategies. You can find the strength and weaknesses as a trader, and please begin trading on a live account if it feels confident and ready.
Various Instruments Trading
As mentioned earlier, traders are not happy with limitations. A growing number of trading instruments offered by the broker, the greater the opportunities to be gained. Choose a broker that offers not only the major currencies, but also minor, exotic, precious metals and other commodities. For example gold, these instruments are very popular at the time of economic and political instability.
Reliable Trading Platform
The best forex broker will offer the best trading platform as well. Reliable trading platform will provide access to technical analysis and fudamental, a good security system, automated trading, and has a display graphs and charts that are easy to use. Standard cutting edge platform is MetaTrader 4 and MetaTrader 5
Automated Trading
Automated trading, algorithmic trading or, can give a huge advantage. A trader can implement its strategy or adopt strategies other traders in several trading platforms that have the software to do automated trading, then the platform will make trades automatically in accordance with the strategy that has been inserted. One example of this software in the platform MetaTrader 4 is the Expert Advisors. The advantage of using automated trading is that you do not need to observe motitor any time and wait for an opportunity to enter the market, because these opportunities will be captured by automated trading systems. Keep in mind, even if the system is working in accordance with the strategy you've developed or adopsikan, the risk of loss or profit is always there.
Deposit and Withdrawal
For the benefit and convenience, it is important to choose a broker that offers methods of depositing and withdrawing funds quickly and easily. Deposit instant funds to support your positions or take advantage of the opportunities may appear suddenly in the market. In other cases, if you want to withdraw the funds for whatever reason, then the withdrawal process should be fast and easy, so that the funds can be obtained in a short time and no more than a few days.
Glossary and Explanation of Terms Important In the Forex world
In the forex world there are a variety of terms and definitions so often some much forgotten. Because forex education would not be complete without a glossary forex, we compiled a list of terms with the purpose of explaining the definition of important terms as easy as possible.
Aggregate Risk
Aggregate risk when a bank or financial institution is bound in forex contracts with a single customer.
Ask
The price agreed trader to buy a financial asset.
Asset
One item or resource that has value
Bank Rate
Interest rates, the interest rate used by the central bank of a country when it lends money to domestic banks in the country.
Base Currency
The base currency, the currency pair, the first currency in the pair is referred to as the base currency. For example, the pair USD / JPY, USD is the base currency (base currency).
Bear Market
Sluggish market, when the price of financial instruments, assets, or a particular market is declining.
Bid
The price of the targeted traders to sell a financial asset.
Bull Market
Up market, when the price of financial instruments, assets, or a particular market is increasing rise.
Buy Limit Order
Command to perform a transaction at or lower than a certain price, the word 'limit' indicates that a specific price.
Carry Trade
When investors borrow at low interest rates so that they can buy assets that will likely result in higher interest rates.
Closed Position
When a trading position is closed, it means that the transaction has been resolved - whether long or short positions or transactions that benefit or cause harm.
Closing Market Rate
Closing market prices or also known as closing price (closing price), this is the last price when a financial asset traded on a particular day or time period.
Currency Appreciation
Currency appreciation, when a currency to rise in value compared with other currencies.
Currency Basket
A group of certain currencies that make up the weighted average value that can serve as a measure to assess an obligation.
Currency Futures
A contract that specifies the price of a currency that can be bought or sold on a certain date in the future. Futures contracts are often used by investors as a hedge against the risk instrument.
Currency Pair
The pair formed by two different currencies traded in forex transactions. Example: EUR / USD.
Daily Chart
Daily chart, a graph illustrating the daily movement of a financial asset.
Day Trade
Trade (trade) whose position is opened and closed in one day
Demo Account
Demo, funded trading account with virtual money (false), giving traders the opportunity to know the market and tested the trading platform they use before investing real money into a live trading account or a real account.
Depth of Market
Market depth, number of open orders to buy and sell a financial asset at various prices.
Drawdown
When the value of an investment falls, the distance or the difference between the highest peak and the lowest base is referred to as drawdown.
ECN Broker
Brokers who use Electronic Communication Networks or Electronic Communications Networks (ECN) to provide direct access to the clients to the liquidity providers.
Exchange Rate
Exchange rate or the exchange rate of a currency which can be exchanged with another.
Execution
Execution, when a trade is executed and completed transactions.
Exposure
Exposure, it indicates the amount of investment in a financial asset that is vulnerable to market risk.
Fill
Completion or execution of a transaction order.
Fill or Kill
When an investor wants to make a transaction at a price that is very specific, they gave the order Fill or Kill - meaning that if the order can not be fulfilled (filled) at the desired price, the order is canceled (killed).
Fill Price
The price at which a transaction order has been fulfilled or implemented.
Floating Exchange Rate
Floating exchange rate, when the value of the exchange rate is not specified, but the adjusted depending on supply (supply) and demand (demand) of a particular currency relative to other currencies.
Forex Chart
Forex chart is the digital charts depicting price movements of currency pairs to assist the investor in taking the right decision.
Forex Scalping
Trading strategies are based on the assumption that if you buy and sell (or sell and buy) a currency in a very short period of time, you will most likely benefit than if you wait for large price movements.
Forex Signal System
Forex signal system, a system that gives a signal to traders to help them decide when to buy or sell a currency pair.
Forex Spot Rate
The current exchange rate where the currency pair can be bought or sold.
Forex Trading Robot
This is an automatic trading software designed to help make a decision right time to buy or sell a currency pair at any given moment.
Fundamental Analysis - Fundamental Analysis
Economic or political events influence on prices in the financial markets (interest rate announcement, the number of unemployed, and others)
Hedge
Protection of value, investors take advantage of hedging to protect themselves by reducing the risk that may be posed by adverse market movements. Protection of value investing means doing two opposite and offset each other, so as to minimize the losses that may occur as a result of price fluctuations.
Interbank Rate
Interbank interest rates, the interest rates charged for short-term loans between banks.
Leverage
Leverage offered brokers to maximize the purchasing power of traders by giving them the opportunity to deposit funds in small amounts so that they can trade in large volumes. The leverage is expressed as a ratio, so if for example a leverage of 1: 100, then the purchasing power of traders increased 100-fold.
Limit Order
Command to perform a transaction at a specified price or better.
Limit Price
The price specified in the Limit Order
Liquidity
Trading volume in the market for a particular currency pair.
Long Position
Long position, take a long position on a currency means you buy it. In a currency pair, you buy the first currency (base currency / currency basis) in the pair.
Lots
One lot is the size of a standard quantity of the instrument you are trading. In forex, one lot is 100,000 units of a currency.
Margin
This is the amount of money required in your account to maintain a trading position remains open.
Margin Call
This is a notification that will alert you to deposit some money into your trading account so that the available margin sufficient to maintain existing trading positions remain open.
Mark-to-Market
The value of an open position in case of a trade position was closed at the current market price.
Market Order
An order for immediate transactions directly executed or executed at the best available price.
Market Rate
Current quotations in a currency pair.
Micro Lot
Micro lot is 1000 units of the base currency (base currency) in the currency pair.
Middle Rate
The middle rate, the price is exactly halfway between the bid (offer) and ask (demand).
No Dealing Desk
When the trader has direct access to the interbank market and no dealing desk involved in their transactions.
Open Position
The position taken in the currency pair which can bring profit or loss.
Over the Counter
The traditional way of forex trading is 'over the counter', namely traders do forex transactions via telephone or electronic device.
Overnight Position
Overnight position, when the trader's position remained open and continued to trade the next day.
Pip
Pip is Percentage in Point (in percentage points) and is the smallest price change that can be seen on the exchange rate. Generally on the currency pair specified in 4 decimal points and the smallest change that can be seen on the last digit.
Profit Taking
Take Profit, close a trading position to take advantage.
Quote Currency
Second currency of the currency pair known as the quote currency (quotation currency). Examples of EUR / USD, USD is the quote currency.
Regulated Market
Regulated market is a market that is governed by the rules of the existing legislative and regulatory functions to protect investors.
Resistance
The resistance, the price level at which a stock or currency difficult to break through to a higher level and eventually began to turn down.
Risk Management
Risk Management, tools and strategies as much as possible the trader to limit financial risk.
Rollover Rate
In forex, rollover interest rate is the rate that must be paid or accrued by the trader when they leave (rollover) trade positions remain open until beyond the night.
Round Trip
Shows the total amount of funds spent on opening and closing of a trading position.
Slip page
This occurs when a command is executed or a transaction executed at a price that is different from the expected price of the trader. This usually happens in a period of trading with high volatility, when traders use transactions command a market order and the stop loss order.
Soft Currency
A currency that is sensitive to economic and political events so that the fluctuating high and generally unstable.
Speculator
A trader who take high risks by selecting trading financial instruments are at high risk in the hope of obtaining a high level of profit as well.
Spike
Price movements are sudden rises or falls sharply increased and occurs in a very short period of time.
Spread
The difference between the ask and bid prices of a currency pair.
Stop Loss Order
Orders to buy or sell the currency when the specified price has been reached. This command is done to limit the loss of a trading position.
Order Take Profit (T / P)
An order to close a trading position when it has reached a certain price with the aim of taking advantage.
Technical Analysis
Traders use technical analysis to predict price movements by studying historical data market through the use of charts and trading indicators.
Volatility
Volatility, this shows the level of uncertainty resulting from fluctuations in the price of a currency pair or certain financial assets.
Yield
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