September 25, 2017

How to make money with Online Forex Trading

Whether to buy or sell?
Placing position on the foreign exchange market in online forex trading is very simple: the trading mechanism is very similar to other markets (such as the stock market), so when it already has experience in trading forex, then it will quickly master it.
The object of online forex trading is the exchange of one currency with another currency with the expectation that the price will change, so the currency you buy will increase the value of Your sale compared with that carried out online.

Action Traders EUR USD
You buy EUR/USD at a price of 10.000 + 1.1800-11.800
2 weeks later you alter the 10.000 euros back to the U.S. dollar on the price of 1.2500-10.000 + 12.500 **
You generate profits $700 0 + 700
The exchange rate is the ratio between the value of one currency with another currency. For example, the exchange rate USD/CHF, this shows how much us dollars can buy one franc Switzerland, or rather how much Switzerland francs needed to buy one u.s. dollar.

How To Read Forex Quote
Currencies are always written with the couple, such as EUR/USD or USD/CHF. The reason they are written in the couple because in each foreign currency transaction, simultaneously means buying one currency and selling another currency. Following is the sample exchange rate for the British pound against the U.S. dollar:
Currencies that are listed on the left of the first slash ("/") is known as the base currency (in this example, United Kingdom pounds), while the second currency is on the right side is called the counter or quote currency (in this case, u.s. dollars).
When purchased, the exchange rate tells how many had to pay in the quote currency to buy one unit of the base currency. The things mentioned above, means having to pay 1.51258 u.s. dollars to buy 1 British pound.
When selling, the exchange rate tells how many units of the currency quotes that can be sold to one unit of the base currency. The things mentioned above, then it willreceive 1.51258 u.s. dollar when selling 1 British pound.
The base currency is the "basic" to buy or sell. If you buy EUR/USD means that you buy the base currency and sell the quote currency. In talks Caveman, "buy EUR sellUSD,."
You will buy a couple if you are sure that the base currency is going up than a currency quote. Currency pairs will be sold if the thinking base currency will depreciate (loss of value) relative to the currencies of the excerpt.

How make money with online forex trading

Want Long or Short?
First, it must determine whether to buy or sell.
If you want to buy/buy (which actually means buying the base currency and sell thequote currency), you want the basic currency increases in value and then you will sell them back at a higher price. In the talks the traders, this is called "Long" or take a "Long position". And remember: Buy = Long.
If you want to sell/sell (which means selling the base currency and buy quote currency), you want the basic currencies falling in value and then you are going to buy it back at a lower price. This is called the "short" or taking "Short position". And remember: Sell = Short.

What is the Bid or Ask?
All forex quotes are written with two prices: bid and ask. The value of the Bid will usually be smaller/lower than the ask price.
The bid (Bid) is the price at which the broker is willing to buy the base currency in the foreign exchange quotations. This means the Bid is the best available price at which traders will sell to the forex market
Ask (Ask) is the price at which your broker will sell the base currency in the foreign exchange quotations. This means the Ask is the best available price at which you will buy from the market.
The difference between Bid and Ask is known as the SPREAD.
On the quote EUR/USD above, the Bid price was 1.3456 and the Ask price is 1.3458.
If you want to sell EUR, you click the "buy/sell" and you will sell the Euro at harga1,34568. If you want to buy EUR, you click "Purchase/buy" and you will be buying the euro at the price of 1.34588.

So the discussion about how to make money through online forex trading. Hopefully helpful


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