How do you start trading forex?
First of all we need to look a bit 'and see the matter which approach is best suited to your needs. This is done you will go to a trial period of some virtual month and reached a consistency in earnings will be passed to trading with real money.
As you read the quotes? How do you earn?
As mentioned before reading the quotes you will see for example EUR / USD currency pair then separated by a slash and you can read respectively euro against the dollar. To the left of the currency is called (the base currency) while the right counter. To see what you're buying or selling you have to watch the base currency, for example, if you buy eur / usd euro are buying, selling you are selling euro. In stock market jargon you read long and short, it means to buy / sell and buy / sell.
Who is the broker? What? The broker is a company
brokerage which buys and sells orders according to the decisions of traders. So in order to work you must contact a broker with which to open an account. The broker in the Forex does not charge any commission but gains on the difference in bid-ask when a new position opens.
What is the lottery?
In the forex trading is carried out in batches. There are lots of $ 100, $ 1,000 (Micro-), from $ 10,000 (minilotti) and $ 100,000 (standard lots). You can choose the size of your position by combining the various dimensions. For example, if you want to buy eur / usd for a value of $ 8,000 will buy Micro-8. Long and short
You can either buy (go long) to sell (go short). It 's easy to understand how to make buying simple, if you bought after the price goes up, you earn. Many however do not know that in Forex you can also earn by selling and buying back at lower prices.
The bid / ask spread quotations
forex have two prices, bid and ask, in which the former is always lower than the second. The bid is the price that we can sell because those who make the market wants to buy at that price. While ask is the price we will buy if we wanted to go long.
The difference between bid and ask spread is called.
lever The lever is one of the features that make the forex an attractive markets. Thank you to leverage open positions of a certain size without the need of that money, but only a small part called the margin. The margin varies from broker to broker and to give one example, the margin requirement would be 1%. In this case, if you want to open a position by just 1% $ 10,000 to open it, and then only $ 100.
How do you decide what to buy and when to sell? Two approaches to the market. Fundamental Analysis and Technical Analysis.
Exchange rates are constantly influenced by a variety of factors such as government policy, state economies, demand, supply and many others. Not everyone has the same importance. Just to name a Some of significance we can mention the health of the economy, balance of payments, speculation and political factors, government fiscal and monetary policy and inflation rates. These are key factors that many investors or speculators to use their decisions to buy or sell.
A large number of speculators and investors instead of using technical analysis. This is to study the charts. This approach is used by both the speculator is short transactions, the investor is performing at a wider range, months or years.
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