You can ask are what is the trade in Forex? In forex, one sells or buys foreign exchange. The objective in Forex is Exchange a currency for another – Trade forex. For example, you can buy pounds sterling (by exchanging the dollars has), and then, after the pound / dollar rate climbs, selling pounds and buying dollars again. At the end of this operation is going to have more money, then you had at the beginning.
The market Forexx is the market of greater volume and with greater liquidity in the world, much more than any market of values. The service to the customer is available24 hours to the day.
To difference of the actions, the market of currency allows perform operations witha high degree of leverage, usually is of 100 to 1. This means that it can operate with$100,000 considering your only 1000 dollars, and consequently highly increase yourwinnings. Forex brokers Alsunos offer “mini” accounts, which require a minimum deposit of $100. This allows you to enter the foreign exchange market with more ease.
In Forex, the name of a “symbol” consists of two parts – one is for the first currency,and another for the second, the usd/jpy symbol represents United States dollar (usd) to Japanese yen (jpy).
As in the stock market, you can apply some technical indicators to the graphic in the Forexx market. These indicators can be a valuable resource and help Forex traders to find a winning strategy.
Example of operation with Forex- Trade forex
Suppose you have $25,000 trading account and you are operating with a requirement of initial margin of 1%. The current quote of EUR / USD is 1.3225/28 and you place a market order to buy a batch of 100,000 Euros to 1,3228, waiting for a rise of theeuro against the dollar. To the same time, you placed an order stop-loss to 1,3178 representing a loss maximum of the 2% of their capital if the trade goes against you,50 pips below the price of entry, and an order limited to 1.3378, 150 pips above itsprice of entry. To operate, you risk 50 to 150 pips and has a 3:1 of profit/risk ratio. This means that you have a significant possibility of finish with gains to long term.
Conclusion Trade forex
The value notional of this operation is $ 132,280 (100,000 * 1.3228). Your deposit ofmargin required is of the 1% of the total, which is equivalent to $ 1322,80 ($ 132.280 * 0.01).
As expected, the euro appreciated against the dollar and your limit order is reachedat 1,3378. The position has been closed. Its profit total of the operation is of $ 1500,each pip is worth $ 10.
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