Learn to know the Forex Glossary



Forex
It is an investment of a currency of trade with another currency. Abbreviation of Exchange or Exchange. If the transactions in the money changers or banks for the buying and selling of the dollar to the rupiah, is called a 'Spot' Forex transactions (purchase / sale of past here, the transfer took place on the ground). Forex transactions are non-Spot is the purchase and sale of foreign exchange contracts, is not a direct delivery of goods, only his contract only.

Lot, contract standard contracts and Mini or regular
If buy us oil, its size is the litre, if granulated sugar and its size East of kilogram. Forex for its size called much. How the heck lot 1. ? If the world Stock 1 lot = 500 shares, Forex 1 lot = 10 000 parts concerned, e.g. 1 lot USD/JPY = 10 000 USD and GBP/USD 1 lot = 10 000 pounds sterling. Size 1 lot = 10 000 known as Mini-los contracts, what is called a Mini? Because before in forex, it is 1 lot = 100 000 coins in question (also called standard/normal contract), due to the high interest in forex trading, then create a mini contract where 1 lot = 10 000 interested parts


some kinds of forex terms to know


Margin
the warranty is in forex trading, I guess you as a down payment to buy a House. When you send an advance payment of a home amounting to 30 million dollars for a House costs $ 100 million and then get the contract of sale, the owner is legally valid in the House despite having only the contract. This contract may be sold at full price in others, for example, 120 million. You will earn a net profit of 20 million (120-100jt). It goes in forex contracts traded, currencies, for example contract great value 1 USD/JPY is USD 10,000, get it just issue a margin (deposit) of $100. Why is 100 USD. It is related with the influence discussed later.

The margin deposited when the open position and then be returned to close a position, as the buying and selling of old houses. You deposit money when you buy 30 million, then resold for $120 million, when you receive funds of 120 million and then 100juta we spend by the seller and the seller returns the first promotion of cash money (seed capital) and we have the 30jt 30 million of initial capital and an excess of 20 million.

Leverage
Trade is the Forex leverage this ratio to determine how the margin (cash advance) is required as part of operation, where the ratio is multiplied by the size of the contract. Example: leverage of 1: 200 contracts in mini account is 10 000 then used margin is (1/200) x 10 000 = 50 units of currency are exchanged.

For example, USD/JPY 1 lot for mini-contratos position, then bought 10 000 USD, the required margin is equal to 1/200 x 50 = USD 10,000 USD. If the GBP/USD trade margin and then used is 50 pounds. For an account standard, used contract is 100 000 with the leverage 1: 100, then 1 lot USD/JPY = 1000 USD and the necessary margin EUR 1/200 x 100 000 = 500 USD

Buy
It is the position in the Forex trading buy and if prices are expected to increase. In summary, buy cheap and sell expensive time, your profit is the difference between the price by purchasing the time of resale

Sell
This is the position in Forex trading to sell if the price is estimated down to that when the prices below that you can close positions sell lower purchase. Ultimately, such as maritime transport, we sell in advance with an expensive price (ready) and then we bought it when the price is cheap, the difference is our advantage. Learn more about the opportunity to form two

Orders and positions
"Order is an order to buy or sell at a certain price, but if the orders delivered becomes 'match' or ' there are opponents ', for example if you order to buy at a price of 9500 and happen to anyone who wishes to sell at the same price, the order becomes a position. While the order was not 'adapt' then his name when even order, but after the 'game' and then now is a position. For sale new that you (closed), position and then they can make new order but with reverse the direction (if it is closed with a sales purchase and vice versa).


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