Online Forex Class

Profit is calculated using basic business concepts, namely:

Purchase price = low profit (buy low) and sell with high price (sell high)

For the above example, say we buy at the price of 1.8900, and 1.9000 after the price increase until we sell the currency. Therefore, we have 100 pips profit. (1.9000 - 1.8900 = 100)

Trader profit by collecting pips. Pip is the price movement of 0.0001 or 0:01 depending on the currency pair you choose.

1 pip value depending on the type of account and a lot you use. 

Pip is a unit of measurement of price movements. If the price increased from 1.9005 to 1.9006, it is said to have increased 1 pip. When the price down from 1.9005 to 1.9004, it is said to have been down 1 pip.

1 pip = 0.0001 or 0:01 depending on the movement of units of currency pair you choose.
In the next figure, GBP / USD 0.0001 a unit of measurement for 1 pip.
In the next figure, USD / JPY has 0001 units of measurement to 1 pip

Quote currency rates consist of 2 of the Bid value (selling price at the dealership) and ask (price from dealer). Bid values are often smaller than Ask. Difference / price difference between Bid and Ask is called Spread. Usually we choose a smaller spread is more profitable because we (traders). Marketiva uses Bid / Offer.

Pip (point) Every movement up or down is calculated as units pip or point (for Forex). For example, if we use as capital to purchase 50.00USD pair EUR / USD, each pip will bring value obtained 0.50USD. If a trade position that we do get profit 10 pips, then profits in the unit value is USD 5.00USD.

Position Long (Buy) This is the position of buying a currency trader at a certain price, intended to sell them back at a higher price. Because of this, traders themselves received benefits from the increased market value.

Short position (sell) This is a position trader sells a currency at a certain price with the intention to buy back at lower prices for profit. Because of this, traders profit when the market value decline.

High, Low, Open & Close High - highest price on record is open from the start until now (when) Low - the lowest price on record is open from the start until now (when) Open - prices starting trade on the Close - price closing trade on that day

Market Order means, in the purchase price (ask / offer) during the immediately (real time); or sell at the price (bid) during at that time also. For example, when the EUR / USD shows 1.3554/1.3557 (ask / bid) and buy when you put a position, then your position will be displayed on the display you are trading on price 1.3555. While you can set Target Profit (TP) by 8 pips higher (1.3563) and fetch you 8 pips profit. Vice versa.

Stop Order / Buy Limit Order, if you want to limit the price down a few pips before you buy new. Buy stop price if you want to go up a few pips before you buy a new sell limit price if you want to go up before you sell new. Sell stop price if you want to download it before you sell some new pips.

Available Margin Total net balance remaining in your account that can be traded after the amount of capital plus profit (-loss). Available Margin = Equity (capital) - Used + Profit Margin (-loss)

Confusion between exchange FOREIGN AND RICH QUICK SCHEME

Rich-quick schemes that promise lucrative returns, like state trading profits generated from their activities berrniaga foreign exchange. Activity-rich-quick schemes actually cumalah System Ponzi game.

Because fraud schemes often use the name of the foreign exchange and also features a natural foreign exchange market that prevailed until the high-risk individuals often costly and involved countries, the Bank Negara Malaysia will not issue any license to play the foreign exchange.

Since ancient times, humans have been trading with for various reasons surrounding the way barter system.

Along with age and civilization perkembangnya barter system this fall because the systems discovered so many disadvantages - a new payment system is to eventually use the money as a means of exchange and payment.

Payment system using the money also has to deal with the weaknesses of a country that has a different type of currency money.

The need for change arises because the value of the currency of a country is usually not accepted as a media device or change in other countries.

International trade relations caused by the demand and supply of some currencies.

This then led to the development of the stock exchange foreign money, so that regulators needed to millions of transactions demand and supply that occur every day, leading to determining the value of convertible foreign currency.

History of exchange / currency trading can be said that contemporary and new money itself that serious attention by many countries in the last decade.

If reviewed in the gold standard for decades (1880 - PD outbreak I), at the time the money guaranteed by the pure gold (pure) which is the standard of the country. Deficit balance of payment will be closed with the transfer of gold, to result in money supply and decrease prices abroad seems to increase, so this will increase the deficit to ekspor lost, so otherwise. Thus, the value of the currency relatively stable.

Until World War I, the gold standard allows reaching a high level of correction of the balance of payment. But not so at the time of war, probably because of growing trade companies and large enterprises, guarantee wages and prices so it is not easy to reduce the likelihood that such berdampak WORSHIP employment. Because membengkaknya unemployment in the early 1930s, the gold standard is not applicable.

After World War finished and the world economic recession in the 1930s, the world want a better economic stability.

On 22 July until 1944, the United States from Prakarsa, held a conference with international financial known: "The Bretton Woods Conference", attended by 44 countries. Motion proposed by the United States delegation (White Plan) to sort articles the agreed policy.

In the conference, created a fixed currency exchange system called the "Fixed Exchange Rate System," which has some similarities to the gold standard, where the load conditions:

   1. Each country setting tukarnya value of currency USD;
   2. United set the value of gold against USD (USD 35/ounce);
   3. America will sell the gold price to remain the holder of the official currency USD;
   4. Change the value of USD currency can not exceed 1%, when forced to be up to 10% max.

Since then countries - countries in the world and America began to grow rapidly and two years after the conference, the international financial institution established and the World Bank that we know at this time with the IMF (International Monetary Fund) and the Word Bank, to monitor the system.

Then changes occurred in the United States, the period of the 1960s, the balance of payment deficit of U.S. forces emasnya the proposed release of USD 18 billion USD because his French convert to gold and extended the period of the 1970s, America should re-release proposal emasnya of USD 11 billion. American economy was at that time led the world community to believe that less USD.

And in a country that has a strong currency money because the proposal has enough gold as Swiss and German, they changed it to GBP-currency that they CHF and KDC. This can result in short-term debt that is due in the United States reached nearly twice the proposed emasnya.

Bretton Wood system is only able to survive almost 30 years, on August 15, 1971, President Nixon announced a switch to change the value system by letting the value of USD tukarnya floating (Floating Exchange Rate System), this re-emphasized in a conference in Washington on 17 -18 December 1971 (Smithsonian CONFERENCE), from where the birth occurred and floating exchange value up to now.

After President Nixon set the value to a floating currency USD, many countries decided to float value tukarnya, such as: Germany, Great Britain, Netherlands, Japan and even years - the following year many countries in the world that let its funds floating in accordance with the value of the market mechanism, namely strength of demand and supply.