A Forex transaction is a contract entered into between a trader and a market operator (i.e. a trading platform). The counter or quoted currency is thus the numerator in the relationship, while the base currency is the denominator. The exchange rate also tells the seller how much to receive in the opposite or bid currency, when.
3] What is the global Forex market?
A brief history of the Forex market
Confidence in a currency is the biggest determinant of the exchange rate between the real euro and the US dollar. Clean, freely floating exchange rates are rare – most of them, in fact. Governments at one time or another attempt to 'control' the value of their currency through changes in interest rates and other means of control. They participate in the Forex market to create profits and benefit from the fluctuations of interest rates and exchange rates.
4] Overview of trading Forex online
When requesting a QUOTE, the trader must specify the currency pair and the deal amount (volume). The merchant would then tell the customer "risk" or "change", meaning - the quoted price is no longer valid. The moment the trader says "buy" (or "sell") he/she is bound by the deal, regardless of the market situation.
5] Training for success
Compare them with changes in the Forex market, as well as with changes in individual currency pairs. Pay attention to the announcements of economic indicators (for example - the monthly unemployment rate in the USA) and try to determine their impact on the market in general, and in particular on individual currency pairs. The training offered by Easy-Forex™ has benefited both novice investors and day trading professionals.
6] Technical Analysis
The goal is to predict the main components of the trend: its direction, its level and the timing. Support / Resistance - The support level is the lowest price an instrument trades over a period of time. The most popular method of interpreting a moving average is to compare the relationship between a moving average of the instrument's closing price and the instrument's closing price itself.
This oscillator consists of the net difference between the current closing price and the oldest closing price from a predetermined period. Rates (prices) are measured on the vertical axis and time is shown on the horizontal axis. Alternatively, it can be defined as “the act of recording raw data and taking action based on the category of the data”.
The indicator is based on the observation that in a strong uptrend, period closing prices tend to concentrate in the higher part of the period's range. Divergence between the stochastic lines and the price action of the underlying instrument gives a powerful trading signal. The MACD line is the difference between two exponential moving averages and the signal or trigger line, which is an exponential moving average of the difference.
A downward gap occurs when the high price of the day is lower than the low price of the previous day.
7] Fundamental Analysis
Note that in the US most indicators are published on specific days of the week, rather than on a specific date of the month (eg the second Wednesday of each month, as opposed to the 14th of each month, etc.). It is considered to be a major driver of the market since private consumption is two-thirds of the US economy. The CPI is one of the most followed economic indicators and is considered a very big market driver.
This indicator is certainly one of the most watched indicators and almost always moves markets. However, the FOMC announcement is of great importance – the content of the discussions at the meeting, which is published 2 weeks after the rate announcement, is almost as important to the markets. BEA (Bureau of Economic Analysis); last day of the quarter, 8:30 am EST, covers data from previous quarters.
Institute for Supply Management; the first business day of the month, 10:00 AM EST, covers the previous month's data. The data is very timely, as retail sales figures are released within two weeks of the previous month. Ministry of Finance; around the 12th business day of the month, 9:00 AM EST, covers the month before the previous data.
The Conference Board; around the 20th of each month, 10am EST. An index used to predict the direction of the economy's movements in the coming months.
8] Day Trading on a Forex platform
However, the merchant can extend the transaction to the next day (with a small renewal fee). If the trader closes the transaction before the indicated closing time (usually 22:00 GMT), no renewal fee will be charged. This is the rate at which the transaction will automatically close if the market moves in the direction predicted by the trader.
This is the place for the trader to manually close a position before it reaches Stop-Loss or Take-Profit. Change Stop-Loss: The trader is allowed to change his Stop-Loss at any time while the trade is still active. If the trader changes the stop-loss downwards (in a case where the position loses and is now close to the automatic close), additional funds will be needed for margin.
If the trader changes the Stop-Loss upwards (in a case where the deal is already making a profit and the trader wants to define a higher Stop-Loss to reduce the original risk), the difference will be credited. Change Take-Profit: Similarly, the trader may define or change a Take-Profit rate. The trader can lose up to 100% of the investment (USD 100) but can earn unlimited profits.
The trader can set the price he/she wants and let the platform do the monitoring until (if and when) it hits the market.
9] Twenty issues you must consider
Easy-Forex™ Trading Platform was the first, and may be the only, Forex platform that allows users to start trading instantly. Easy-Forex™ cares about protecting your credit card security and your privacy to the highest standard. The Easy-Forex™ system allows you to trade with very small amounts if you want: you can start using Easy-Forex™ with as little as $50.
During the "freeze", the Forex market may change, but you are guaranteed the exchange rate that you have frozen. read about the features offered by Easy-Forex™). With Easy-Forex™, you do not pay any commissions on the trades you place (see our Spreads and Commissions page on our website). Easy-Forex™ treats data security, privacy, integrity and backup issues with utmost care and attention.
The high-quality Easy-Forex™ system uses the latest highly sophisticated and advanced technologies to offer you up-to-the-second quotes. As an Easy-Forex™ user, you are entitled to cash and other referral bonuses. When it comes to Forex affiliate programs, Easy-Forex™ is number one in the world (in terms of number of Forex-Affiliates enrolled as well as commissions paid to them).
Using any computer connected to the Internet, anywhere in the world, registered traders can access the Easy-Forex™ system.
10] Tips for every Forex trader
If you are short a currency pair, a Stop-Loss order should be placed above the current market price. If you are long on a currency pair, the Stop-Loss order should be placed below the current market price. Stop-Loss orders are counterintuitive because you don't want them to be hit; but you'll be glad you set them up.
As a general rule of thumb, traders should place Stop-Loss orders closer to the opening price than Take-Profit orders. For example, a trader using Stop-Loss and 100-pip Take-Profit orders at 30 pip only needs to be right a third of the time to make a profit. Where traders place Stop-Loss and Take-Profit orders depends on how risk-averse they are.
Stop-Loss orders should not be so tight that normal market volatility triggers the order. When you first set up a trade, it is wise to try to change the stop-loss and set it at a price in the “middle area”, where you are not overexposed to the trade, and at the same time not too close comes with the transaction. the market. On the Easy-Forex™ platform, traders can change their trading orders as often as they want for free, as a stop-loss or as a take-profit.
The trader can also close the trade manually without hitting a Stop-Loss or Take-Profit order.
11] Forex Glossary
Monthly measure of the change in prices of a defined basket of consumer goods, including food, clothing, and transportation. Gamma The rate at which a delta changes over time, or for one unit the price change of the underlying asset. In the Money A call option is in the money when the strike price is lower than the current price of the underlying instrument.
A call option is in-the-money if the price of the underlying instrument is higher than the exercise/strike price. A put option is in-the-money if the price of the underlying instrument is below the exercise/strike price. The intrinsic value is the difference between the exercise/strike price and the price of the underlying security.
A put option is out of the money if the exercise/strike price is below the price of the underlying instrument. A call option is out of the money if the exercise/strike price is higher than the price of the underlying instrument. The sale of a currency futures contract that is not owned by the seller at the time of the trade.
However, any return or cost of funds is expressed in the price difference between the two sides of the transaction. Theta A measure of the sensitivity of the price of an option to a change in its expiration time. For a spot transaction, it is two banking days ahead in the country where the bank that offers.
12] Disclaimer
