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Senin, 04 Juli 2011

Terms in FOREX investment

terms in FOREX investment
Forex
is an investment that trade one currency with another currency. Is an abbreviation of Foreign Exhange or foreign currency exchange. If the transaction at the money changer or bank for the sale and purchase between the U.S. dollar with the Euro, it is called Forex transactions 'Spot' (buying and selling occurs in place - the handover occurs at the place). Forex transactions are non-Spot is buying or selling currency contracts, so it is not immediately handing over the goods, only the contract alone.

Lot, Mini Contract and Contract Standard / Regular
If we buy oil, its size is a quart, if the sugar then the size is the kilogram. Lot size is referred to forex. How big does a Lot? If the world shares a Lot = 500 shares, on 1 Lot = 10,000 Forex currency pair, eg, 1 Lot USD / JPY = 10.000USD and 1 Lot of GBP / USD = £ 10,000. 1 Lot size = 10,000 so-called Contract Mini, why it is called the Mini? Since earlier in the forex world it 1 Lot = 100,000 a currency pair (also called the Contract Standard / Regular), then because of the high interest in forex trading then made a mini contract where a Lot = 10,000 currency pair

Margin
is guaranteed in forex trading, suppose such Advance purchase of a house. When you submit a down payment on a house for 30 million dollars for a house worth 100 million dollars and we have the contract purchase agreement, legally you are the legal owner of the house although it only holds his contract. This contract you can sell at full price to someone else, for example, to 120 million. You'll get a net profit of 20 million (120 - 100jt). The same is true in forex, which is a contract traded currency, eg USD / JPY then the contract value of 1 lot is $ 10,000, to get it we spend quite a margin (deposit) of USD 100. Why $ 100? This is related to leverage discussed below.

Margin deposited when opening a position and then will be returned when closing the position, just like buying or selling a house earlier. You deposit money when purchasing 30 million and then resold for $ 120 million, when you receive the money 120 million, then we allot 100 million in the first seller and the seller return the down payment (initial capital) for 30jt and we have the money 30 million of initial capital and surplus 20 million.

Leverage
Is leverage in Forex trading is the ratio to determine how much margin (deposit) is required in the transaction, in which the ratio will be multiplied by the contract size. Example: Leverage 1:200 on a mini contract account is 10,000 then the margins used are (1 / 200) x 10,000 = 50 units of currency traded.

Eg open positions in USD / JPY for 1 lot for a mini contract, then purchased is $ 10,000, the margin required is equal to 1 / 200 x $ 10,000 = USD 50. If trade with GBP / USD then used margin is 50 pounds. For Standard accounts, which is 100,000 contract with 1:100 leverage, so 1 lot USD / JPY = USD 100,000 and the margin required 1 / 200 x $ 100,000 = $ 1,000

Buy
is the position in Forex Trading for the Buy and done if the price is expected to rise. In short time buy cheap and sell expensive now, your profit is the difference between the purchase price at the time of resale

Sell
is the position in Forex Trading to Sell and done if the price is expected to drop so that when the price goes down you can close your position with a Buy Sell for less. In short such as a consignment, we sell a good price in advance (borrow) and then we buy back when prices are low, the difference to our advantage. Read more in Two Way Opportunity

Order and Position
Orders are orders to buy or sell at a certain price but if the order is delivered it 'match' or 'no rival', for example if you order to buy at 9500 prices and happened to be willing to sell at the same price, then the Position Order. So long as the order has not 'match' then the name remains the order but after the 'match' will now become position. To re-sell your existing position (closed position), it can be done by Order back but with the direction berlawaran (if it is closed with a Buy Sell and vice versa)

Floating Loss / Profit and Realized
When you have a buy position in 9500 and then the price goes down to 9000, so if you calculated the estimated loss is 9000-9500 = -500. But that value can still be changed tomorrow, either increased or decreased to 8700 again rose to 9700. Well, the value of -500 at the moment is called Floating Loss (Loss), if it is positive, for example, the price is now 10,000 being the difference 10000-9500 called Floating Profit = +1000. If you decide to sell / close your positions when the price is 10,000, then the value of +1000 to be Realized Profit (no longer a floating / floating but has become Real / Real)

Pip
is rated 1 point up or down price movement. For a mini account, a value of 1 point is $ 1, for the standard account is $ 10.

Technical Analysis
is an analysis in Forex trading to measure the movement of prices through price charts. Things that are noteworthy of these is the trend technical analysis, saturation, support, ressisten, and Pivot Point.

Fundamental Analysis
is an analysis in Forex trading to predict price movements based on fundamental news. Fundamental news here in the form of economic news, needed to pressure political, and security that affect price movement.

Resistance
is the price limit above which is a psychological price, for example the current (year 2010) dollar exchange rate is 9000 and has the upper price limit (resistance) 10,000 rupiah, which could mean that the dollar exchange rate to prices through the price of 10,000 rupiah then there will likely continue to rise away from the 10,000 but over 10,000 have not touched the price likely will move up and down just under 10,000.

Support
is the lower price limit which is a pair of resistance (above), for example the current (year 2010) dollar exchange rate has a lower price limit (support) Euro 8500, which could mean that the dollar exchange rate to prices down through price of 8500 dollars then there is likely to be keep away from fall 8500 but for 8500 probably has not touched the price will only move up and down over 8500 (support) and below 10,000. (resistance)

Zig Zag
Technical analysis is a tool to know the trend as well as support-ressisten prices.

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