WHAT IS FOREX?
Forex (Foreign Exchange) trading of foreign currencies, or commonly referred to as the Forex (Foreign Exchange). Traded on the FOREX: Couples (Pairs) Common Currency in the world (for example: EUR / USD, GBP / USD, USD / JPY, USD / CHF). So Forex means the buying or selling a currency against other currencies in order to benefit
Example:
Buy EUR / USD means Buy and Sell Euro USDollar
Sell USD / JPY means the USDollar Sell and buy Japan Yen
Market Hours
Forex markets move and open 24 hours (Monday morning until Saturday pk.4 morning pk.4 WIB)
WIT = Western Indonesian Time or GMT +7
Time Zone:
Asian Times (Tokyo): 7.00-15.00 pm
Europe Time (London): 14.00-24.00 WIB
USA Time (New York): 20.00-05.00 WIB
Contract Value (Quantity Contract Size)
Ie the actual number traded in the market
Contract Size is differentiated on the basis of Lot, namely:
0:01 Lot = unit value of the contract: perpoin / pips worth $ 0.1 or approximately Rp. 1000, --
0.1 lot = unit value of the contract: perpoin / pips worth $ 1 or around Rp. 10.000, --
1 lot = unit value of the contract: perpoin / pips worth $ 10 or approximately Rp. 100.000, --
Readings Prices Buy and Sell
BUY if you expect the price of his pairs move up to get Profit
SELL if you expect the price of his pairs move down to get Profit
Leverage and Margin
Leverage (leverage) there are several general types, namely:
1:1 means cash bail = contract value (100%)
1:100 means the guarantee money 1% of contract value
1:200 means the guarantee money 0.50% of contract value
1:400 means the guarantee money 0.25% of contract value
1:500 means the guarantee money 0.20% of contract value
Description: Security = Margin
Assurance (margin) will be returned to your account balance portfolio again in
intact after your order closed position (close) or clear
Margin Calculation:
For Indirect Currency (USD / JPY, USD / CHF, USD / ...):
FORMULA: Lot x 100.000 x% Margin
Example:
0.3 lot buy USD / JPY at 121.07 price, with leverage 1:200
= 0.3 x 100.000 x 0.5% = USD 150
For Direct Currency (GBP / USD, EUR / USD, ... / USD):
FORMULA: Lot x 100.000 x% Margin x Market Price
Example:
Buy 2.1 lot of EUR / USD at 1.3010 price, with leverage 1:500
= 2.1 x 100.000 x 0.2% x 1.3010 = EUR 546.42
You will not be able to order if the rest of your Free Margin is insufficient. By
therefore adjust the use of force lotnya with your capital.
Illustration of Use Leverage & Margin
ILLUSTRATION (for example with 1:500 leverage in setting your account)
You want to buy a $ 100,000 USD / JPY at market (or = 1 regular lot), you do not need to spend capital money for the $ 100,000, but you spend enough money for the guarantee is only 0.2% of its $ 100,000 from the $ 200 course. (eg for 1:500 leverage margin 0.2%) And if you make a profit from these transactions, the results that you can be as much as you have capital to trade directly with the $ 100,000 in the market with no leverage. And if the loss was, you also only loss of $ 200 and not $ 100,000. (you can also limit your losses with Stop Loss) in Forex trading so the Modern is more profitable and less risky than the traditional type because of the leverage and margin facilities in the modern Forex. Besides, the potential outcome (gain) was also obtained as much. Leverage facilities can also increase your income potential, since the percentage of income generated is doubled in accordance with the Power bring it up.
Calculation of Profit and Loss
For Currencies Direct:
FORMULA:
movement pips x lots x $ 10
Example: Buy 1 lot of EUR / USD from 1.3000 to 1.3008 = 8 pips
8 pips x 1 x $ 10 = $ 80
For Indirect Currency:
FORMULA:
(open price - the price close) x Lot x 100.000 / close price
Example: Sell 0.2 lot USD / JPY from 122.12 to 121.08
((122.12 - 121.08) x 0.2 x 100.000) / 121.08
= $ 171.78
If the loss is the same calculation
Column Balance, Equity, Margin
Balance: the amount of money you have already realized or diclose (not floating)
Equity: the amount of money you are after is calculated with floating profit / loss
Margin: the total use of margin in accordance with the amount of your order
you
Free Margin: The margin is the rest of you can use to order (if you still have the floating position to a withdrawal you can retrieve it from the rest of the money in this Margin Free)
Margin Level: the percentage of equity versus your margin
Margin Call
Understanding Margin Call in common: namely a situation where your money drop
below the margin required (due to loss), and you can position terclose
automatically when exposed to this Margin Call
Example:
Your Money $ 3000, and you open 1 lot position in USD / JPY at 1:100 leverage (1%),
The required margin is $ 1000. If the rest of your equity money is falling
floating loss due to touch $ 1000 or below it, then open positions
you will automatically disclose forced by the system. Each brokerage firm has a margin call feature different, If you trade, do not use a lot ratio is too large compared to your equity capital, because it may incur a margin call with ease. Margin call also works for the total money you do not become negative due to losses that occurred in your order (except for certain conditions such as Fast Market)
Rollover / Swap / Interest / Interest
Ie interest generated value or charged to you based on the interest rate of each currency. Interest will be calculated from the open position through pk.4 you every morning WIB (GMT +7)
Example:
Interest Rate USD = 5.25%, Interest Rate = 0.5% JPY
BUY USD / JPY means to borrow JPY ditabungkan in USD, so you will
get an interest rate: -0.5% + 5.25% = +4.75%
Interest is calculated per day (after pk.4 morning GMT), and calculated based on the value of lots (contracts sizenya) and NOT from your capital. Interest is calculated starting from Monday to Friday, but on Wednesday-Thursday rates are calculated 3x as much (so the total is 1 week = 7x interest).
Hedging / Locking
That is a facility where you can open an open order: Buy and Sell on same currency (the same number of lots too) and no one diclose position, this technique is used to lock the position where you are normally used to lock the current position of the floating loss.
Example:
You open order Buy EUR / USD at 1.3000 and then the position you are suffering from loss by 50 points (down to 1.2950) and in your position is the key 1.2950 (hedging) by way of a new open Sell order at 1.2950 on the EUR / USD again. So in this way then your loss will remain floating on -50 points, until then one or both of these hedge positions you close. So even if the price drops towards the 1.2500 was your loss position remain -50 points. Besides that hedging can also be used for your trading technique variations.
BUY & SELL STOP STOP ORDER
BUY STOP: Order BUY order above the current price is running, in the hope that when the market price moves up to a certain point, and at that point will automatically set Buy the hope that the graph can be moved up again to make a profit
STOP SELL: SELL order Order Below that price now underway, with the hope when market prices move down to
a certain point, and at that point will be automatically installed Sell by
hope that the graph can be moved down again in order to profit.
BUY & SELL LIMIT LIMIT ORDER
BUY LIMIT: Order order BUY Below the current price is running, in the hope that when the market price moves down to a certain point, and at that point will be automatically installed Buy with the expectation that the graph can then move up to profit.
SELL LIMIT: SELL Order Your order is now above the price of progress, in the hope that when the market price moves up to a certain point, and at that point will automatically be installed Sell with the expectation that the graph can then move down to profit.
TP and SL
Take Profit (TP): It is to target your profits
Stop Loss (SL): That is to limit your losses (cut loss)
SL should be installed on every order you, because to limit your losses to no worse off if you hit the open position loss (ideally a maximum SL 50 pips or depending on risk management (risk level) you)
The use of Metatrader
Can learn here
Some account is needed before we go through the forex business include the following:
1. www.libertyreserve.com
Now create account www.libertyreserve.com
After entering data click submit, then open your email and reply code sent www.libertyreserve.com and click Agree, Easy is not it? After that record all your data. Please note once you register, LR (Liberty Reserve) does not give confirmation to your email so you have to remember, or should note your account number begins with the letter U, U123456 example, PIN and password login, as it should when you login.
2. MoneyChanger
Once we have a Liberty reserve account we need to fill with the liberty dollars. You can buy the moneychanger in Indonesia. First you must register as a member, then you can buy with money tranfering accordance with the amount you buy Liberty which has been adjusted by the changer.
3. Changerfx
To the user can use the services FXPRO changerfx for deposit and withdrawal via local bank
Forex (Foreign Exchange) trading of foreign currencies, or commonly referred to as the Forex (Foreign Exchange). Traded on the FOREX: Couples (Pairs) Common Currency in the world (for example: EUR / USD, GBP / USD, USD / JPY, USD / CHF). So Forex means the buying or selling a currency against other currencies in order to benefit
Example:
Buy EUR / USD means Buy and Sell Euro USDollar
Sell USD / JPY means the USDollar Sell and buy Japan Yen
Market Hours
Forex markets move and open 24 hours (Monday morning until Saturday pk.4 morning pk.4 WIB)
WIT = Western Indonesian Time or GMT +7
Time Zone:
Asian Times (Tokyo): 7.00-15.00 pm
Europe Time (London): 14.00-24.00 WIB
USA Time (New York): 20.00-05.00 WIB
Contract Value (Quantity Contract Size)
Ie the actual number traded in the market
Contract Size is differentiated on the basis of Lot, namely:
0:01 Lot = unit value of the contract: perpoin / pips worth $ 0.1 or approximately Rp. 1000, --
0.1 lot = unit value of the contract: perpoin / pips worth $ 1 or around Rp. 10.000, --
1 lot = unit value of the contract: perpoin / pips worth $ 10 or approximately Rp. 100.000, --
Readings Prices Buy and Sell
BUY if you expect the price of his pairs move up to get Profit
SELL if you expect the price of his pairs move down to get Profit
Leverage and Margin
Leverage (leverage) there are several general types, namely:
1:1 means cash bail = contract value (100%)
1:100 means the guarantee money 1% of contract value
1:200 means the guarantee money 0.50% of contract value
1:400 means the guarantee money 0.25% of contract value
1:500 means the guarantee money 0.20% of contract value
Description: Security = Margin
Assurance (margin) will be returned to your account balance portfolio again in
intact after your order closed position (close) or clear
Margin Calculation:
For Indirect Currency (USD / JPY, USD / CHF, USD / ...):
FORMULA: Lot x 100.000 x% Margin
Example:
0.3 lot buy USD / JPY at 121.07 price, with leverage 1:200
= 0.3 x 100.000 x 0.5% = USD 150
For Direct Currency (GBP / USD, EUR / USD, ... / USD):
FORMULA: Lot x 100.000 x% Margin x Market Price
Example:
Buy 2.1 lot of EUR / USD at 1.3010 price, with leverage 1:500
= 2.1 x 100.000 x 0.2% x 1.3010 = EUR 546.42
You will not be able to order if the rest of your Free Margin is insufficient. By
therefore adjust the use of force lotnya with your capital.
Illustration of Use Leverage & Margin
ILLUSTRATION (for example with 1:500 leverage in setting your account)
You want to buy a $ 100,000 USD / JPY at market (or = 1 regular lot), you do not need to spend capital money for the $ 100,000, but you spend enough money for the guarantee is only 0.2% of its $ 100,000 from the $ 200 course. (eg for 1:500 leverage margin 0.2%) And if you make a profit from these transactions, the results that you can be as much as you have capital to trade directly with the $ 100,000 in the market with no leverage. And if the loss was, you also only loss of $ 200 and not $ 100,000. (you can also limit your losses with Stop Loss) in Forex trading so the Modern is more profitable and less risky than the traditional type because of the leverage and margin facilities in the modern Forex. Besides, the potential outcome (gain) was also obtained as much. Leverage facilities can also increase your income potential, since the percentage of income generated is doubled in accordance with the Power bring it up.
Calculation of Profit and Loss
For Currencies Direct:
FORMULA:
movement pips x lots x $ 10
Example: Buy 1 lot of EUR / USD from 1.3000 to 1.3008 = 8 pips
8 pips x 1 x $ 10 = $ 80
For Indirect Currency:
FORMULA:
(open price - the price close) x Lot x 100.000 / close price
Example: Sell 0.2 lot USD / JPY from 122.12 to 121.08
((122.12 - 121.08) x 0.2 x 100.000) / 121.08
= $ 171.78
If the loss is the same calculation
Column Balance, Equity, Margin
Balance: the amount of money you have already realized or diclose (not floating)
Equity: the amount of money you are after is calculated with floating profit / loss
Margin: the total use of margin in accordance with the amount of your order
you
Free Margin: The margin is the rest of you can use to order (if you still have the floating position to a withdrawal you can retrieve it from the rest of the money in this Margin Free)
Margin Level: the percentage of equity versus your margin
Margin Call
Understanding Margin Call in common: namely a situation where your money drop
below the margin required (due to loss), and you can position terclose
automatically when exposed to this Margin Call
Example:
Your Money $ 3000, and you open 1 lot position in USD / JPY at 1:100 leverage (1%),
The required margin is $ 1000. If the rest of your equity money is falling
floating loss due to touch $ 1000 or below it, then open positions
you will automatically disclose forced by the system. Each brokerage firm has a margin call feature different, If you trade, do not use a lot ratio is too large compared to your equity capital, because it may incur a margin call with ease. Margin call also works for the total money you do not become negative due to losses that occurred in your order (except for certain conditions such as Fast Market)
Rollover / Swap / Interest / Interest
Ie interest generated value or charged to you based on the interest rate of each currency. Interest will be calculated from the open position through pk.4 you every morning WIB (GMT +7)
Example:
Interest Rate USD = 5.25%, Interest Rate = 0.5% JPY
BUY USD / JPY means to borrow JPY ditabungkan in USD, so you will
get an interest rate: -0.5% + 5.25% = +4.75%
Interest is calculated per day (after pk.4 morning GMT), and calculated based on the value of lots (contracts sizenya) and NOT from your capital. Interest is calculated starting from Monday to Friday, but on Wednesday-Thursday rates are calculated 3x as much (so the total is 1 week = 7x interest).
Hedging / Locking
That is a facility where you can open an open order: Buy and Sell on same currency (the same number of lots too) and no one diclose position, this technique is used to lock the position where you are normally used to lock the current position of the floating loss.
Example:
You open order Buy EUR / USD at 1.3000 and then the position you are suffering from loss by 50 points (down to 1.2950) and in your position is the key 1.2950 (hedging) by way of a new open Sell order at 1.2950 on the EUR / USD again. So in this way then your loss will remain floating on -50 points, until then one or both of these hedge positions you close. So even if the price drops towards the 1.2500 was your loss position remain -50 points. Besides that hedging can also be used for your trading technique variations.
BUY & SELL STOP STOP ORDER
BUY STOP: Order BUY order above the current price is running, in the hope that when the market price moves up to a certain point, and at that point will automatically set Buy the hope that the graph can be moved up again to make a profit
STOP SELL: SELL order Order Below that price now underway, with the hope when market prices move down to
a certain point, and at that point will be automatically installed Sell by
hope that the graph can be moved down again in order to profit.
BUY & SELL LIMIT LIMIT ORDER
BUY LIMIT: Order order BUY Below the current price is running, in the hope that when the market price moves down to a certain point, and at that point will be automatically installed Buy with the expectation that the graph can then move up to profit.
SELL LIMIT: SELL Order Your order is now above the price of progress, in the hope that when the market price moves up to a certain point, and at that point will automatically be installed Sell with the expectation that the graph can then move down to profit.
TP and SL
Take Profit (TP): It is to target your profits
Stop Loss (SL): That is to limit your losses (cut loss)
SL should be installed on every order you, because to limit your losses to no worse off if you hit the open position loss (ideally a maximum SL 50 pips or depending on risk management (risk level) you)
The use of Metatrader
Can learn here
Some account is needed before we go through the forex business include the following:
1. www.libertyreserve.com
Now create account www.libertyreserve.com
After entering data click submit, then open your email and reply code sent www.libertyreserve.com and click Agree, Easy is not it? After that record all your data. Please note once you register, LR (Liberty Reserve) does not give confirmation to your email so you have to remember, or should note your account number begins with the letter U, U123456 example, PIN and password login, as it should when you login.
2. MoneyChanger
Once we have a Liberty reserve account we need to fill with the liberty dollars. You can buy the moneychanger in Indonesia. First you must register as a member, then you can buy with money tranfering accordance with the amount you buy Liberty which has been adjusted by the changer.
3. Changerfx
To the user can use the services FXPRO changerfx for deposit and withdrawal via local bank
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