Terms forex (Forex Introduction Basic Guide)

The introduction of the term the term FOREX is necessary for all of us who still start Trading Forex. Below are some Forex Terms that should be in the know:

Forex-is an investment transaction which performs a specific country's currency trading with other countries, so the term forex is an abbreviation of FOReign EXhange mean the exchange of foreign currency. Maybe you already know the process of transactions on the company's bank or money changer who provide transaction or foreign currency exchange as exchange currency USD to IDR or USD to SGD and other currencies, this is often referred to as the Forex Spot, meaning the transaction currency or currency sale and purchase made directly on site. While there are other terms that non-spot Forex to mean Transactions of buying and selling currencies do not occur directly on the currency handover was usually only a contract only.

Lot-lot subdivision that has a number of contracts with mini, standard according to the brokerage firm where you do you use. Lot size is a term such as kilograms (KG), let's say 1 kg = 1000gram, then how much value this 1Lot? In standard costing 10,000 1Lot value currencies concerned or 1,000 USD, the currency trading is always paired for example 1Lot USD/JPY = 10,000 USD or EUR/USD 1Lot = 10,000 EUR, in the Division of its category 1Lot costing 10,000 currencies concerned, including in the categories mini, because usually in the category thresholds are 100,000 currency concerned.

Margin – the guarantee of money in forex trading, which is where if you have 10000 USD and if you make a purchase or sale transactions on currencies USD/JPY and you play as much as your Margins so Mini 1Lot worth 1Lot and you do a closure of a transaction with a whopping 1,000 USD then your money will be refunded for $ 9,000 USD, but what if you suffered losses reaching 10,000 USD of Transactions 1Lot USD/JPY? will happen Currency dealers ' Closure is the USD/JPY was forcibly, this is because the margin has become 0 (zero), in the previous example I've identified with 1Lot and defeat 1000 USD then our margin remaining 9,000 USD, on this occasion will not occur forcibly closing because the value of the margin or guarantee money for transactions still exist or not worth the 0 (zero). So the Margin can be said as a security deposit in Forex Trading.

Leverage-Ratio or comparison Is to determine how the margin needed in trading forex. For example we opened a mini Forex account with 10,000 USD, when trading forex using a Leverage of 1: 200 mini account in the contract then the margin used to play are 50 units of the currency diperdangangan, example 1: 200 USD/JPY then used margin is 50USD.

Buy-the position on the forex trading is done when the price of the currency pair currency before the expected or predicted would rise, for example from predictions made euro (EUR) is undergoing improvement or increment. So permisalannya currency pair EUR/USD the EUR is expected to experience an increase or price increases the exchange rate of the currencies USD then do forex trading with position BUY EUR/USD. So Buy the currency EUR/USD while still cheap and after experiencing an increase then close this transaction currency. so does close here are selling back the currency, so the advantages it brings is the difference between the purchase price of the when you resell it.

Sell-is the opposite of a BUY, i.e. Suppose we play the EUR/USD and predict the Euro will weaken then forex trading was undertaken with a sell position, so the profit earned on transaction sell EUR/USD is we first sell EUR/USD at high prices, then later on when the exchange rate of the euro against the usd has been down or low then performed close to the EUR/USD transactions. so does close on sell this is we buy back the currency EUR/USD that earlier we sell when the price is high, then this can be obtained with profits from the difference between the sale price and the current price we buy it back.

Order and position-Order is the order's request to buy or sell a specific currency pair price when prices were already at our desires. For example EUR/USD Position is now worth $ 1,300 and we do orders buy at 1.2950 then the value at the time the value of the currency EUR/USD decline and menyentu value of 1.2950 then automatically then the Order will was positions. If it does not reach 1.2950 then will not occur any transaction.

Floating Profit/Loss and Realized - when we have a buy position currency EUR/USD at price 1.3200 and then the price moves down to 1.3000, so if our loss estimates are calculated 1.3200-1.3000 =-200 pips. But as long as you are still sufficient margin you can still hang on until your margin values to 0 (zero) because in terms of forex trading this is might just be able to ride with all of a sudden so that any possibility of tomorrow ininya or 1-2 hours in the future can be turned over the State or make things worse. But if that is generated is positive then the pip will be the victory we suppose the position moves up into our victory then 1.3400 is + 200pip.

Pip-like pip is above the value of each point good deals go down or down each pip is worth 1/100th of the price of betting our money ... ...Suppose you open a forex trading on a position sell (USD/JPY) with margin 50USD packed 1pipnya is $ 50USD/100 = 0.5 USD.

Technical analysis-a method of analysis in forex trading to measure movement of the value or price of a graph. In this regard it should be noted that is the result of technical analysis is a is a point of saturation, support, ressisten, trend and pivot point.

Fundamental analysis-an analysis of the way in forex trading used to make predictions of price movements through the analysis on Fundamental news that appears. Fundamental news here can be any economic news, political, and security that affects the price movement of the currency of a country.