WIKIFX: How to make money in foreign exchange trading
WikiFX | 2021-12-28 10:21:31
What is a stock exchange?
How does the foreign exchange market work?
In the currency exchange market, different currencies are bought and sold.
Trading in the foreign exchange market is easy. Trading mechanics are similar to those in the rest of the financial markets (like commodity markets), so if you have any knowledge or experience in trade, you will immediately understand what it is like.
Even if you do not know anything about it, you will soon understand harkar. Once you have completed the School of Pipsology, the financial business training program we provide.
The purpose of the exchange market is to exchange one currency for another while the price is expected to change.
In particular, that the money you buy will add value to the money you sell.
Here is an example.
* EUR 10,000 x 1.18 = US $ 11,800
** EUR 10,000 x 1.25 = US $ 12,500
Simply put, the price of a change is to compare the value of one currency over another currency.
For example, the USD / CHF exchange rate indicates the amount of US dollars you can buy for one Swiss currency, or the amount of Swiss currency you need to buy for one US Dollar.
How to read the foreign exchange market
Currency pairs are usually listed in two currencies, such as GBP / USD or USD / JPY.
The reason they are priced in pairs is that, in each exchange transaction, one currency is bought and another currency is sold at the same time.
How do you know how much to buy and who to sell?
Good question! Here is where the issue of funding base and rates are priced came.
Funded and subjective fees
Whenever you have an open market in the foreign exchange market, you are exchanging one currency for another currency.
Fees are charged in relation to other fees.
Here is an example of the exchange rate of the British Pound against the US Dollar:
The first currency from the right and left is called the base currency (British pound in this example).
The underlying currency is an important indicator of the exchange rate fluctuations of the two currencies. It always has the same value.
At the time of purchase, the exchange rate refers to the amount of items you have to pay in the proportion of the cost of purchasing one share of the base price .
In the previous example, the exchange rate refers to the percentage of the value proposition that you will receive if you sell one share of the base currency.
In the previous example, you would earn US $ 1.21228 if you sold 1 British Pound .
base funds represent the total amount of capital funds required to obtain a single share of base funds.
If you buy EUR / USD it means that you are buying the underlying currency and at the same time you are selling the underlying currency. In the original language, "buy EUR, buy USD,"
You will buy a double bond if you believe that the underlying funds will increase in value in terms of cost savings.
You can sell a double bond if you think that the underlying funds will break down in terms of cost savings.
Given that there are two major trading currencies, how do exchange brokers know which currencies to invest in as well as what currencies to deposit?
Fortunately, the exchange rate has been adjusted in the exchange market.
You can note that prices are denominated as a series of two currencies that are separated by a constant ("/").
Be aware that this is a matter of choice and can be removed or replaced with height, horizontal or vertical position.
For example, some traders may write "EUR / USD" as "EUR-USD" or simply "EURUSD". They all mean the same thing.
"Long" and "Short"
First, decide whether you want to buy it or not.
If you want to buy it (which means buying base money and selling it at a high price), you want the stock to be worth it and then buy it at a high price.
In the business world, this is called "long walk" or "long walk " .
Remember: extension = purchase
If you want to sell (which means selling base capital and buying higher prices), you have to base your values and then sell them at a higher price.
This is called a "short walk" or "short stop" .
Remember: short = sale
I am tall and short.
Spread out or Murabba'i
If bakada positions in the open , is called the "flat" or "square" .
"Closing the position" is called "gathering squares" .
"I am a square."
Pricing, Question and Layout
Generally the exchange market price is priced in two ways: pricing and query prices .
In general, the price quoted does not reach the asking price .
What does pricing mean?
Pricing is the price at which the broker intends to purchase the underlying funds for the exchange of valuables.
This means making the price is the best price you (the dealer) can make in the market.
If you want to sell something, the dealer will buy it from you at a fixed price.
What is the “Question Price”?
The question is the price the dealer will sell the funding base exchange fees the cost.
This means the query price is the best price you can buy in the market.
Another term also refers to the question of whether the price is intentional .
If you want to buy something, the seller will sell it (or offer it) to you at the asking price .
What does "Bed" mean?
The difference between the price and the asking price is called SHIMFIDA .
At EUR / USD exchange rate above, the quoted price is 1.34568 and the asking price is 1.34588. take a look at how this broker makes it easy for you to leave your money.
If you want to sell the EUR, click on the "Sell" icon and sell your euro at 1.34568.
If you want to buy EUR, click on the "Buy" icon and buy the euro at 1.34588.
Here is a sample summary of what we have discussed in this lesson.