Min menu

Pages

Trading

Make money by trading

Rontgen

 What moves individual currencies and how are they quoted?

ONE OF THE BEST BENEFITS OF FOREX TRADING IS

All that can be lost is the amount of money required to conduct a transaction (known as "margin").


Make money by tradingMake money by trading 

You should be aware that, despite the super-high leverage given by some Forex brokers (400:1); that is, if you put up $1,000, the broker will enable you to trade as if you had $400,000.

Forex trading is still less hazardous than stock or futures trading, where you can lose more money than you invest.

1. This kind of LEVERAGE DOES NOT EXIST IN THE MARKET FOR EQUITIES OR FUTURES

This kind of LEVERAGE DOES NOT EXIST IN THE MARKET FOR EQUITIES OR FUTURES


In the equity or futures markets, unexpected and dramatic swings occur frequently, against which you cannot protect yourself, even if you have put protective stops.


Your position may be liquidated at a loss, and you will be responsible for any resultant account deficit.

However, due to the FX market's high liquidity and 24-hour trading, hazardous trade gaps and limit movements are practically non-existent.


Orders are filled in a timely manner, with no slippage or incomplete fills. Finally, no margin calls are made. To safeguard you, the broker will automatically close down any or all of your open positions if your account equity falls below the minimum necessary to keep the positions open.


Consider this a last, automatic halt, constantly working on your behalf to avoid a negative balance.


2. Currencies are exchanged in dollar increments known as “LOTS.”

Currencies are exchanged in dollar increments known as “LOTS.”


Most Forex brokers provide you the option of trading in one of two lot sizes. Standard Lots or Mini lots are available.

One Standard lot is worth $100,000 in cash. Using a 400:1 leverage, the margin requirements would be US$ 250, implying that you hold $100,000 worth of currency for just $250 US dollars.


3. Do you imply that if I deposit $250 with a broker, I can trade $100,000 in currency?

Do you imply that if I deposit $250 with a broker, I can trade $100,000 in currency?


NO, however, keep in mind that your account must be larger than the necessary margin of US $250. For example, if you place an order to purchase 1 Standard lot (@100,000) of USD/JPY and it is quoted at 112.10/112.13, you will buy USD/JPY at 112.13.

Because you paid 3 pips, or $30, for this deal, your account balance would be $220. If you want to terminate this transaction right away, you must sell it at 112.10 (the offer price) for a $ 30 loss.

In actuality, you would not be able to execute this transaction since the broker's trading platform would reject your order due to insufficient money in your account).

As a result, your account balance must be at least $280. The margin is $250, and the trade is $30.

BUT...IF, after initiating the trade to purchase USD/JPY at 112.13, the USD/JPY falls the following second 1 pip (about $8), your position will be instantly terminated due to a margin deficit.

I'll go into more detail on having a sufficient account size to trade the Forex market later.

In FOREX, currencies are always exchanged in pairs. The currency pairings are denoted by a unique notation that specifies which currencies are being exchanged.

A currency pair's symbol will always be in the form ABC/DEF. ABC/DEF is not a genuine currency pair; it is an example of a currency pair symbol. In this example, ABC represents one country's money while DEF represents another country's currency.

4. The most frequent Forex symbols 

The most frequent Forex symbols

  1. The US Dollar is abbreviated as USD.
  2. EUR - The European Union's currency "EURO"
  3. GBP - British Pound, often known as cable
  4. The Japanese Yen is abbreviated as JPY.
  5. The Swiss Franc is denominated in CHF, while the Australian Dollar is denominated in AUD.
  6. The Canadian Dollar is abbreviated as CAD.

Other currencies have their own symbols, but these are the most widely traded.

A currency cannot be exchanged on its own. As a result, you can never trade the USD on its own. To make a deal feasible, you must always BUY one currency and SELL another.


5. The most often traded currency pairs

The most often traded currency pairs


  1. EUR/USD Euro vs. US Dollar
  2. USD/JPY The value of the US dollar in relation to the Japanese yen.
  3. GBP/USD The British Pound vs the US Dollar.
  4. USD/CAD The US dollar vs the Canadian dollar
  5. AUD/USD The Australian Dollar vs the US Dollar
  6. USD/CHF The US dollar vs the Swiss franc
  7. EUR/JPY Euro vs. Japanese Yen

  • The currency to the left of the / is referred to as the base currency.
  • The /'s currency right is known as the counter currency.

When you purchase the EUR/USD, for example, you are actually purchasing the EUR and selling the USD.

If you sold the pair, you would be selling the EUR and purchasing the USD. When you purchase or sell a currency PAIR, you are essentially buying or selling the base currency.

The simplest approach to remember is to consider the full currency pair as a single thing.

If you buy it, you will buy the first currency and sell the second. If you sell it, you will sell the first currency and acquire the second.

That is, you would be allowed to short-sell without limitations, allowing you to profit when the market falls as well as rises.

The issue with the traditional stock market or commodities trading is that the market must rise in order for you to profit. You may make money in all ways by trading FOREX.

6. Conclusion 


There are several money-making possibilities available, and we have been involved in a number of them, including property marketing, online development, home construction security, multi-level marketing enterprises, and so on.

With the assistance of some well-known property instructors, we arrived at a few findings.

People who have the desired money often do not have the time to appreciate it. Those who have time do not always have money. You don't have to give up your lifestyle to earn a higher-than-average salary. 

If you focus on Forex for a few months, you may turn your goal into a reality and free up time and money to accomplish what you REALLY want.

To make a living, money is exchanged for a product or service provided. Unless it is a recurring sort of product or service, it must be sold continually or your revenue would cease abruptly.

Money serves as a means of trade. There is no mystical method for obtaining it; instead, you must exchange something of worth for it.

What if you could have access to thousands of consumers who are ready, willing, and able to purchase from you at any time?

 Wouldn't it be nice to prevent headaches like money collection issues (I just had a delayed payment from my web business), keeping tough clients happy (we've all been there), competitors snatching your business without giving the same value, and so on?

With Forex, everything is possible. You may also trade from any location. Take your laptop with you, connect to the internet, and go.

Another benefit is that you don't need any prior experience to get started. Obtaining a traditional job requires specialized knowledge, a well-polished résumé, and the appropriate contacts. You can get started right away with the proper training course.




Latest articles from : Trading