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Saturday, April 28, 2012

Free Forex Education

 Let us continue the free training forex here. Now we turn to the words they used in forex trading and is widely used by traders. But if you are already familiar with these words, then you can skip this post and go to the next articles. Let's start with:
Lot - Mini Contracts and agreements Standard / Regular
Lot is the standard unit for the deal happen. All contracts, the value set the number of lots. In Indonesia, because size varies on the policy of Dealer / Broker.
If you buy gasoline, size in liters, of currency trading known as Lot




How big does a lot? If the global pool 1 lot = 500 shares, trading forex 1 pack = 10,000 for each currency, for example, Lot 1 USD / JPY = $ 10,000 and a lot of GBP / USD = 10,000 €. Part 1 = 10,000 Mini-called contract because the contract called the Mini? Since earlier in the forex markets 1 pack = 100 000 Foreign exchange (also known as the MTA / normal), then because of the great interest in currency trading then made a contract in which a mini-Lot = 10,000 corresponding value
Margin
Margin is a required capital in the forex trades to secure the deal
Assume that the advance purchase of a home. When you send a home purchase down payment of $ 500,000 for a house worth $ 1 million and the purchase agreement of the contract, you are legally legitimate owner of the house, although only the contract holder. This contract can be sold at full price to someone else, for example, to 1.2 million. You will receive a net gain of 200 thousand people. The same is true in Forex, which contracts traded currency, such as USD / JPY a lot of the contract value is $ 10,000, to get us out quite a margin (deposit) of $ 100.
In forex trading, the margin deposit when you open a position and then return when you close the position, the same to buy or sell a house before. You put money on the purchase of 500 000 and then sold for $ 1.2 million, when it receives the money, 1.2 million euros, 100 million, then assign the first seller and the seller to return the deposit (savings) on 500 000 and 500 000, we have money for start-up capital and surplus of 20 thousand
Influence
The lever in forex operations is the ratio to determine the amount of margin (deposit) required in the transaction, where the ratio multiplied by the volume of the contract. Example: Leverage 1:200 on a mini account contract is 10,000 when the margin is (1/200) x 50 = 10,000 units traded currency.
For example, open a position USD / JPY for 1 mini lot for a contract, then the purchase is $ 10,000, the margin requirement is 1/200 x $ 10,000 = $ 50. If trade with GBP / USD then used margin is 50 pounds. For the standard account, the contract has been used 100 000 with leverage 1:100, so that a portion USD / JPY = USD 100,000 and the required margin of 1/200 x $ 100,000 = $ 1,000
Order
Instructions on currency trading to perform operations on a certain speed.
The orders are commands to buy or sell at a certain price, but if the order was given "game" or "no rival", for example if you order and purchase at a price of 9500 and by chance it is to want to sell at same price when the Order in place. As long as the order is not "match" the name is still order, but after the "match" is now located. To sell your current position (closed position) this can be done through the back order, but in the opposite direction (if it is closed with a sale and buy back)

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