Thursday, August 27, 2009

WHAT IS FOREX?


FOREX (Foreign Exchange) or better known as Foreign Exchange (Currency Exchange) is a type of trade / trade transaction currency of a country against another country's currency-market involving major financial markets in the world for 24 hours continuously
(see trading hours).

Forex market movements market rotates from New Zealand & Australia which took place at 05.00-14.00 WIB, continued into the Asian markets of Japan, Singapore & Hong Kong that took place at 07.00-16.00 WIB, to European markets namely Germany & United Kingdom that lasted at 13.00-22.00 WIB, to the American market that lasted at 20.30-10.30 WIB. In the development history, the central bank of countries with foreign currency reserves that can overcome even the largest by market forces of free forex.

According to the survey BIS (Bank International for Settlement of the world's central banks), who performed at the end of 2004, the forex market transaction value reached more than USD $ 1.4 trillion per day. Thus, the prospects of investment in forex trading is very good.

Given the level of liquidity and accelerating the movement of these high prices, FOREX has become the most popular alternative because of the ROI (Return On Investment, or the return value of our investments have been planted) and the profit will be obtained can exceed the average trade in general (usually flat average return ranges of more than 5% - 10% per month, can even reach more than 100% per month for professional traders). Due to the rapid movement, then FOREX is also a high risk if you do not have sufficient knowledge and financial management arrangements well.


Then, what is the currency traded? all world currencies are common and have a high selling power. Example: USDollar, Yen, Euro, Franc, Pound Sterling. (EUR / USD, GBP / USD, USD / JPY, USD / CHF). and others.


Then how to process the transaction? and what's Buy / Sell foreign currencies in this market? on the stock exchange (forex) is you can buy or sell currencies traded. Objective is to gain profit or advantage of position you are doing transactions.

Example: if you are buying (BUY / Offer) of a currency. and currency price movements tesebut shows a significant increase in graphics, then you can take advantage of the price difference with your purchase closed position, and vice versa if you do sell (SELL / bid) and then the currency price movement has experienced a decrease graphs, then you can also take advantage by closing the position you are selling.


Is the FOREX is "Two Ways of Opportunities?" Yes! Transactions on the FOREX can be done by 2-way in taking advantage. BUY (offer) first, then covered with a take profit SELL (bid) or otherwise do SELL first, then covered with a take profit BUY.


What is the difference Forex Forex traditional & modern (ValasOnline)?
For the foreign exchange market (forex) traditional use of leverage is 1:1, or the means to trade worth $ 5000 you will need $ 5000 Besides money, or means in traditional foreign exchange market requires large capital, and the traditional Forex trading is generally done offline (usually in money changer or the bank).
Meanwhile, in the modern forex markets trading using leverage (leverage / contract size) generally reply 100:1, trading was using online media. So in the modern forex you just need to spend capital to $ 50 just be trading in the amount of $ 5000 (see explanation below contract size)
Click Here To See More Comparisons


How do I calculate my transaction results in the FOREX?
Here's how:
To FOREX that the USDollar is there are 2 main types of common currency traded types Direct and Indirect
Example:
- Direct: GBP / USD, EUR / USD, AUD / USD, and others (just a ... / USD)
- Indirect: USD / JPY, USD / CHF, etc. (USD /....)

And for the calculations:
Such as we start trading Forex with initial capital of U.S. $ 5000 (regular account), then the way our transaction count is:

For Direct currency:
our example of trading in the regular Forex account which then we inputkan quantity contract sizenya = U.S. $ 100,000 and we do Buy in EUR / USD at 1.2000 and then a position in close-Sell (take profit) at position 1.2010, then we will profit by:
(1.2010 - 1.2000) x 100,000 = $ 100 (profit)
or vice versa if the same loss calculations

For Indirect currency:
our example of trading in the regular Forex account which then we inputkan quantity contract sizenya = U.S. $ 100,000 and we do Sell on USD / JPY at 110.10 and then a position at close Buy (take profit) at position 110.00, then we will profit by:
((110.10 - 110.00) x 100000) / liquid position 110.00 = $ 90.91 (profit)
or vice versa if the same loss calculations.

DESCRIPTION:
If you make a transaction BUY (offer) of a currency, and then the number SELL (bid) it moves beyond the numbers you BUY this, then you will benefit. Similarly, if you do SELL (bid) and then figure BUY (offer) was moving less than you'd SELL position, then you also will benefit. But if otherwise then you will experience a loss (loss).