INTRODUCTION TO FOREX
Perhaps you've heard the word "Forex". As an introduction, we will discuss about forex itself.
What exactly is the "forex" it? Forex is acronym (abbreviation) of "Foreign Exchange", or foreign currency exchange. The term is more often the public is the foreign exchange (forex).
Talking about the forex (foreign exchange) is talking about the value of a currency against another currency. The currency than its value against other currencies, which then form the "exchange" or "exchange". That you know best example is probably the US dollar exchange rate (USD) with the Indonesian currency: the rupiah (IDR). Comparison of the USD with S that is then you are familiar with the term "exchange rate of the dollar against the rupiah". If you look at banks or money changers, or if you also look at developments in television or newspaper currency, the rupiah exchange rate against the dollar is often denoted by the symbol USD / IDR.
money-works
You certainly know that in the past ten years, the development of forex trading (forex trading) in Indonesia is very rapid. Nearly the whole society has to forex or even directly involved in forex trading. It is quite reasonable considering the opportunities that can be achieved in forex trading are enormous. The magnitude of these opportunities among other things because the money market is the largest financial market in the world, considering all economic activity in the world is definitely geared to the currency. Daily volume of more than 3 trillion dollars per day! You could say the money market will continue to run as long as humans still carry out economic activities. In fact, if you are trading forex online, you can make transactions whenever you want for 24 hours a day, five days a week (Monday to Friday).
NYSE-VS-FOREX
Comparison Forex vs New York Stock Exchange
Here is a comparison chart between the average daily volume in the money market with an average volume of transactions that occur on the stock exchanges of New York (New York Stock Exchange). If you look at the chart below, you can see that the volume of average daily transactions in the money market is almost nine times greater than that took place on the NYSE.
Forex Buy Sell Tading
Have you swap your rupiah (IDR) to US dollars (USD)? Or, maybe you've swapped to USD with EUR (euro)? Well, at that point you're actually involved in the money market. Action "swap" IDR to USD or the USD to EUR a forex transaction! At that point you're performs the buying and selling of foreign exchange. When you "swap" your IDR to USD, basically you're selling your IDR and at the same time: buy USD.
You can do this kind of transaction through bank or money changer. You just come to the bank or money changer and then perform the foreign exchange transactions. Or you just call the treasury officer at the bank you trust to carry out such transactions. We call it the way transactions such as transaction conventional manner.
Mobile-Trader
Along with the development of technology, did you know that now you can easily do similar transactions online? You do not need to go anywhere else to conduct forex transactions. Enough of the house or any place you want, which is important there is a computer and an Internet connection. Accompanied by a cup of coffee or tea, you can trade from a chair or sofa comfortable, perhaps even from the bed!
There is little difference between the forex trading through online brokers with foreign exchange transactions that may be used to do the majority of our society in the bank or money changer. Almost all online forex broker forex transactions facilitated by the system of contracts and the margin (the margin). Here are some points related to the online trading (with a margin).
shadow10
1. Object trade
In this case, the object is still the same trade. What is that? Of course money. But here you are traded is a contract based on the value of the currency. Maybe a little bit confusing. Not to be confused, there will be further clarification of this point. But it simple, let's just do a certain currency transactions as if to buy "shares" of certain countries. Fluctuations in the currency of the country is an indirect picture of market sentiment towards the economy of the country. There are several currency called "major currency". They are the currencies of developed countries and traded widely in world financial markets. Below is a table listing the currencies included in the major currency pairs.
State Symbols (Currency) Nickname
United States USD (Dollar) Greenback
Euro zone members EUR (Euro) Fiber
Japan JPY (Yen) Yen
England GBP (Pound Sterling) Cable
Switzerland CHF (Franc) Swissy
Canada CAD (Dollar) Loonie
Australia AUD (Dollar) Aussie
New Zealand NZD (Dollar) Kiwi
Internationally, the currency symbol consisting of three letters. The first two letters are the identity of the country of origin of the currency, usually the initials of the country. The third letter is the initial of the name of its currency.
For example: USD. The first two letters (US) are the initials of the name of the country: the United States, which is also known by the name of the United States in the Indonesian language. What is unique is the CHF, Swiss franc currency symbol. CH is the initials of Confoederatio Helvetica is the Latin name of the Swiss Confederation, while the letter F is the initials of its currency: franc.
2. Leverage & Contract Size
The online forex broker to apply leverage in carrying out forex trading. With danya this leverage, a relatively small fund can make transactions with a contract value far greater. This is because the services leverage, that if we mean is "leverage". Maybe it would be easier if we analogy with a car jack. With the jack, you just need a little power to lift our car body that weighs maybe hundreds of kilograms. Well, the "how" of this leverage approximately ya like a car jack that was.
Examples of its application like this:
On the broker to apply the leverage of 1: 100, then you just need a fund of $ 1,000 just to make a transaction valued at $ 100,000. An amount of $ 1,000 is called the margin, while the value of transactions amounting to $ 100,000 are called Contract Size. That is, the capital you need only 1% only.
Meanwhile, if you do conventional forex transactions, to trade at $ 100,000 then you have to provide capital amounting to $ 100,000. In other words, the capital you need at 100%.
leverage
3. Directions transactions
A so-called "two-way opportunity". That is, you can still look for opportunities profit when the market is up or down.
There are two types of transactions: purchase (buy) and sell (sell). Transactions BUY often called by LONG, while also called SHORT SELL. If the price is in kedaan rise, then the transaction BUY (LONG) you can do to make a profit. Conversely, if prices are falling, do not worry because the transaction SELL (SHORT) You can also benefit. Why is this so, we will discuss later.
table
4. Time trading
We mentioned that time that the forex trading takes place 24 x 5, ie 24 hours a day and 5 days a week. This is due to the world financial markets turns running in a day. Here is a time table of world trade:
TIME ZONE GMT GMT *
New Zealand is open 23:30 04:30
Tokyo is open 00:00 07:00
New Zealand cap (Tokyo still open) 07:00 14:00
London open 08:00 15:00
Tokyo closed (London still open) 09:00 16:00
New York is open 13:00 19:00
London closed (New York still open) 17:00 24:00
New York closed 22:30 03:30
* In winter, for pm is GMT + 8
Meanwhile, if you do regular foreign exchange transactions, you have to wait for the money changer or his bank is open. For the record, the banks in Indonesia on average are not serving forex transactions above 15.00 or 16.00.
5. How to transact
Increasingly sophisticated technology. Nowadays everything is online. Want to pay utility bills, send money to friends or family, or even shopping, you do not need to leave home again. All you need to do was turn on the computer, connect to the internet, then voila! Transaction ensued.
Forex trading too. To conduct foreign exchange transactions, all you need is a computer connected to the Internet. There are even some brokers who provide mobile trading facility for its customers. With the facility, you can make transactions via PDA or smart phone that you have.
Compare practicality when you have to come to the bank or money changer to make transactions.
How-Transaction
Quote
It was mentioned earlier that the currency is transacted in a currency pair. Before we go further, we will learn about the currency pair itself.
Judging from the type, currency pairs are divided into two:
1. Major Currency Pairs, or Majors That currency pair involving the major currencies and traded against the USD. Which includes the major currency pair is the EUR / USD, GBP / USD, AUD / USD, NZD / USD, USD / JPY, USD / CHF and USD / CAD.
2. Cross Currency Pairs or Cross Rates Namely currency pair that does not involve the USD. For example EUR / GBP, EUR / CHF, GBP / JPY and others.
The first currency mentioned we refer to as the base currency, while second currency we call the counter currency. When you perform a transaction BUY (BUY), then in fact you BUY base currency and at the same time SELL counter currency. Conversely, when you make a transaction BUY (SELL), then you do is SELL base currency and at the same time BUY counter currency. This is one reason why you could do a SHORT (SELL / SELL) in advance when the price falls. For example, when you do a SELL EUR / USD, then the price of EUR / USD down, the greater your benefits.
OK, you already know that no such thing majors and cross rates. Well, now you will learn how to read the price derived from the exchange rate of the currency pairs mentioned above.
Bid / Ask
In forex trading, currency pair traded in a BID and ASK price basis. BID meruakan benchmark for you if you want to do transactions SELL, while the ASK price on the contrary, is a benchmark for you to carry out a transaction BUY.
Writing the Bid and Ask is usually like this:
bid-ask
From the example above, the BID his is 1.30000, while the prices of its ASK is 1.30020. So if you want to perform a transaction BUY, then your transaction will be carried out at the price of 1.30020. Conversely, if you want to do a SELL transaction, then your transaction will be carried out at the price of 1.30000. It's easy?
You can also see that the ASK price is always higher than the BID. The difference between the BID ASK it is the spread.
BID is also often referred to as EXCHANGE BUY. That is the price used is the merchant if they want to BUY from you. Instead, ASK has another name as KURS SELL, which means that traders always use these prices when they will SELL it to you. Thus, based on the example above, if you are going to buy EUR from merchant then the price is equal to 1.30020 per USD. Conversely, if you want to sell EUR to the merchant then the price is equal to 1.30000 per USD.
Perhaps you've heard the word "Forex". As an introduction, we will discuss about forex itself.
What exactly is the "forex" it? Forex is acronym (abbreviation) of "Foreign Exchange", or foreign currency exchange. The term is more often the public is the foreign exchange (forex).
Talking about the forex (foreign exchange) is talking about the value of a currency against another currency. The currency than its value against other currencies, which then form the "exchange" or "exchange". That you know best example is probably the US dollar exchange rate (USD) with the Indonesian currency: the rupiah (IDR). Comparison of the USD with S that is then you are familiar with the term "exchange rate of the dollar against the rupiah". If you look at banks or money changers, or if you also look at developments in television or newspaper currency, the rupiah exchange rate against the dollar is often denoted by the symbol USD / IDR.
money-works
You certainly know that in the past ten years, the development of forex trading (forex trading) in Indonesia is very rapid. Nearly the whole society has to forex or even directly involved in forex trading. It is quite reasonable considering the opportunities that can be achieved in forex trading are enormous. The magnitude of these opportunities among other things because the money market is the largest financial market in the world, considering all economic activity in the world is definitely geared to the currency. Daily volume of more than 3 trillion dollars per day! You could say the money market will continue to run as long as humans still carry out economic activities. In fact, if you are trading forex online, you can make transactions whenever you want for 24 hours a day, five days a week (Monday to Friday).
NYSE-VS-FOREX
Comparison Forex vs New York Stock Exchange
Here is a comparison chart between the average daily volume in the money market with an average volume of transactions that occur on the stock exchanges of New York (New York Stock Exchange). If you look at the chart below, you can see that the volume of average daily transactions in the money market is almost nine times greater than that took place on the NYSE.
Forex Buy Sell Tading
Have you swap your rupiah (IDR) to US dollars (USD)? Or, maybe you've swapped to USD with EUR (euro)? Well, at that point you're actually involved in the money market. Action "swap" IDR to USD or the USD to EUR a forex transaction! At that point you're performs the buying and selling of foreign exchange. When you "swap" your IDR to USD, basically you're selling your IDR and at the same time: buy USD.
You can do this kind of transaction through bank or money changer. You just come to the bank or money changer and then perform the foreign exchange transactions. Or you just call the treasury officer at the bank you trust to carry out such transactions. We call it the way transactions such as transaction conventional manner.
Mobile-Trader
Along with the development of technology, did you know that now you can easily do similar transactions online? You do not need to go anywhere else to conduct forex transactions. Enough of the house or any place you want, which is important there is a computer and an Internet connection. Accompanied by a cup of coffee or tea, you can trade from a chair or sofa comfortable, perhaps even from the bed!
There is little difference between the forex trading through online brokers with foreign exchange transactions that may be used to do the majority of our society in the bank or money changer. Almost all online forex broker forex transactions facilitated by the system of contracts and the margin (the margin). Here are some points related to the online trading (with a margin).
shadow10
1. Object trade
In this case, the object is still the same trade. What is that? Of course money. But here you are traded is a contract based on the value of the currency. Maybe a little bit confusing. Not to be confused, there will be further clarification of this point. But it simple, let's just do a certain currency transactions as if to buy "shares" of certain countries. Fluctuations in the currency of the country is an indirect picture of market sentiment towards the economy of the country. There are several currency called "major currency". They are the currencies of developed countries and traded widely in world financial markets. Below is a table listing the currencies included in the major currency pairs.
State Symbols (Currency) Nickname
United States USD (Dollar) Greenback
Euro zone members EUR (Euro) Fiber
Japan JPY (Yen) Yen
England GBP (Pound Sterling) Cable
Switzerland CHF (Franc) Swissy
Canada CAD (Dollar) Loonie
Australia AUD (Dollar) Aussie
New Zealand NZD (Dollar) Kiwi
Internationally, the currency symbol consisting of three letters. The first two letters are the identity of the country of origin of the currency, usually the initials of the country. The third letter is the initial of the name of its currency.
For example: USD. The first two letters (US) are the initials of the name of the country: the United States, which is also known by the name of the United States in the Indonesian language. What is unique is the CHF, Swiss franc currency symbol. CH is the initials of Confoederatio Helvetica is the Latin name of the Swiss Confederation, while the letter F is the initials of its currency: franc.
2. Leverage & Contract Size
The online forex broker to apply leverage in carrying out forex trading. With danya this leverage, a relatively small fund can make transactions with a contract value far greater. This is because the services leverage, that if we mean is "leverage". Maybe it would be easier if we analogy with a car jack. With the jack, you just need a little power to lift our car body that weighs maybe hundreds of kilograms. Well, the "how" of this leverage approximately ya like a car jack that was.
Examples of its application like this:
On the broker to apply the leverage of 1: 100, then you just need a fund of $ 1,000 just to make a transaction valued at $ 100,000. An amount of $ 1,000 is called the margin, while the value of transactions amounting to $ 100,000 are called Contract Size. That is, the capital you need only 1% only.
Meanwhile, if you do conventional forex transactions, to trade at $ 100,000 then you have to provide capital amounting to $ 100,000. In other words, the capital you need at 100%.
leverage
3. Directions transactions
A so-called "two-way opportunity". That is, you can still look for opportunities profit when the market is up or down.
There are two types of transactions: purchase (buy) and sell (sell). Transactions BUY often called by LONG, while also called SHORT SELL. If the price is in kedaan rise, then the transaction BUY (LONG) you can do to make a profit. Conversely, if prices are falling, do not worry because the transaction SELL (SHORT) You can also benefit. Why is this so, we will discuss later.
table
4. Time trading
We mentioned that time that the forex trading takes place 24 x 5, ie 24 hours a day and 5 days a week. This is due to the world financial markets turns running in a day. Here is a time table of world trade:
TIME ZONE GMT GMT *
New Zealand is open 23:30 04:30
Tokyo is open 00:00 07:00
New Zealand cap (Tokyo still open) 07:00 14:00
London open 08:00 15:00
Tokyo closed (London still open) 09:00 16:00
New York is open 13:00 19:00
London closed (New York still open) 17:00 24:00
New York closed 22:30 03:30
* In winter, for pm is GMT + 8
Meanwhile, if you do regular foreign exchange transactions, you have to wait for the money changer or his bank is open. For the record, the banks in Indonesia on average are not serving forex transactions above 15.00 or 16.00.
5. How to transact
Increasingly sophisticated technology. Nowadays everything is online. Want to pay utility bills, send money to friends or family, or even shopping, you do not need to leave home again. All you need to do was turn on the computer, connect to the internet, then voila! Transaction ensued.
Forex trading too. To conduct foreign exchange transactions, all you need is a computer connected to the Internet. There are even some brokers who provide mobile trading facility for its customers. With the facility, you can make transactions via PDA or smart phone that you have.
Compare practicality when you have to come to the bank or money changer to make transactions.
How-Transaction
Quote
It was mentioned earlier that the currency is transacted in a currency pair. Before we go further, we will learn about the currency pair itself.
Judging from the type, currency pairs are divided into two:
1. Major Currency Pairs, or Majors That currency pair involving the major currencies and traded against the USD. Which includes the major currency pair is the EUR / USD, GBP / USD, AUD / USD, NZD / USD, USD / JPY, USD / CHF and USD / CAD.
2. Cross Currency Pairs or Cross Rates Namely currency pair that does not involve the USD. For example EUR / GBP, EUR / CHF, GBP / JPY and others.
The first currency mentioned we refer to as the base currency, while second currency we call the counter currency. When you perform a transaction BUY (BUY), then in fact you BUY base currency and at the same time SELL counter currency. Conversely, when you make a transaction BUY (SELL), then you do is SELL base currency and at the same time BUY counter currency. This is one reason why you could do a SHORT (SELL / SELL) in advance when the price falls. For example, when you do a SELL EUR / USD, then the price of EUR / USD down, the greater your benefits.
OK, you already know that no such thing majors and cross rates. Well, now you will learn how to read the price derived from the exchange rate of the currency pairs mentioned above.
Bid / Ask
In forex trading, currency pair traded in a BID and ASK price basis. BID meruakan benchmark for you if you want to do transactions SELL, while the ASK price on the contrary, is a benchmark for you to carry out a transaction BUY.
Writing the Bid and Ask is usually like this:
bid-ask
From the example above, the BID his is 1.30000, while the prices of its ASK is 1.30020. So if you want to perform a transaction BUY, then your transaction will be carried out at the price of 1.30020. Conversely, if you want to do a SELL transaction, then your transaction will be carried out at the price of 1.30000. It's easy?
You can also see that the ASK price is always higher than the BID. The difference between the BID ASK it is the spread.
BID is also often referred to as EXCHANGE BUY. That is the price used is the merchant if they want to BUY from you. Instead, ASK has another name as KURS SELL, which means that traders always use these prices when they will SELL it to you. Thus, based on the example above, if you are going to buy EUR from merchant then the price is equal to 1.30020 per USD. Conversely, if you want to sell EUR to the merchant then the price is equal to 1.30000 per USD.
INTRODUCTION TO FOREX
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March 25, 2016
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