To perform calculations between partners who are in different countries, interstate payments, speculative transactions, etc., banks around the world in the FOREX market produce exchange operations. Depending on a variety of commercial, economic and other indicators, interest rates, central bank policies, time of day, preferences and expectations of the stock market game, from a variety of different reasons mutual quotations ie prices of currencies, are in constant motion.
Your task - to try to determine the direction of the price change and the currency to buy the currency, the price of which increased, or to sell the currency, the price of which falls, and then make a return transaction, make a profit.
Our dealing center you have the opportunity to work with the package AFM (AkmosFOREXMaster), with which you live get currency rates of different banks and the world's largest exchanges - market participants FOREX. At the same time you have plotted the changes of the current price of each currency, as well as the incoming fresh economic news - News, which directly or indirectly affect or may affect in the future currency quotes. For more details you can read the AFM, reading the user manual.
And finally, you have a special "Trading" account, allowing you to buy and sell the currency of your choice. At the same time, although on your trading account are US dollars, you can start its activities with the sale of stamps or yen, not caring about what you do not buy them.
Some refer to the figures and definitions.
Each currency is assigned a three-letter code. For example, the code for the US dollar - USD (UnitedStatesDollar), Code Euro - EUR (EURo), Swiss Franc - CHF (ConfederationHelveticaFranc), the Japanese yen - JPY (JaPaneseYen), the British pound - GBP (GreatBritishPound). Exchange rates show the ratio of currency units of different countries against each other. Codes courses presented 6-letter words composed of two three-letter currency codes. In the first place, as a rule, the code is more meaningful exchange. Quotes are expressed in units of the second currency per unit of the first. For example, quotes USDCHF (USD-CHF) show the number of Swiss Francs per US dollar, but rates GBPUSD (GBP-USD) show the contrary, many dollars should pay for one British pound. For more information on codes of financial instruments can be found in the relevant table.
Quotes are usually expressed in five-digit number. For example, USDJPY = 121.44 means that one US dollar is estimated at 121.44 Japanese yens (ie $ 1 willing to pay as much yen when buying or selling). At the same time, GBPUSD = 1.6262 means that 1 British pound is estimated at 1.6262 dollar. In general, if the quote XXXYYY = Z, this means that for one unit XXXdayut Z units YYY.
When the quote is changed, for example USDJPY = 121.44 for USDJPY = 121.45 and GBPUSD = 1.6262 to 1.6263 saying that the price has changed by 1 point. From earlier it follows that in this example the yen fell by 1 point, and the pound rise in price, too, by 1 point.
Watching the charts must be remembered that only graphics euro (EURUSD) and British pound (GBPUSD) reflect the actual movement of prices (ie, the graph up - the price is higher), and growth (ie, motion graphics up) means other currencies not an increase, but a decrease of quotations (prices).
Your trading account is conducted in US dollars, so do not know the value of this prevents one point for different courses. Determine the value of the item on the following algorithm: it is necessary to divide the lot size on the quotation without the decimal point. For example, in the above example, the cost of one point USDJPY dollars = 100000/12144 = $ 8.24. Or, for the price of one item GBPUSD = 100000/16262 = $ 6.15. It follows that the cost of 1 point is different not only in different currencies, but also in one currency at different quotes. The lot size for each course can be taken from the same table
As you know, every transaction is made at a well-defined and specific price, while in the table for each currency QuoteSpreadSheet come three prices.
Each participant of the FOREX market for each specific transaction is acting as a currency or sellers, or buyers. This seller offers the currency more expensive, for example, GBPUSD at 1.6325, and the buyer asks the currency cheaper, for example, GBPUSD at 1.6322. Accordingly, the offer price Seller called ASK, and the price the buyer - BID. Therefore, if you assume that GBPUSD will go up (on your graph the curve GBPUSD goes up), you decide to buy a pound, while it is cheaper, in order to sell more expensive. Buy (this is called BUY) only from a seller who will offer it at a price ASK. When you sell a pound (the sale is called SELL), the buyer will offer for its price at BID (this is true for all currencies). Hence it is apparent that if you open a position (the operation is called - OPEN), ie made BUYGBPUSD, and then want to close it (the operation is called CLOSE), ie sell just bought pounds, you can only do so at a loss, the same way as it would in any exchange office. Therefore, to make a profit, the price of the currency to be held in the intended direction you more than the difference between BID and ASK. The third number is called LAST - on the FOREX market is the mean value between the last BID and ASK.
In summary, for USDCHF and USDJPY opening of a position at a reduced (ie BUY) comes at a price BID, and closed - at the price of ASK; Accordingly, the position's opening INCREASE (ie SELL) occurs at the price of ASK, a CLOSE - at BID.
For GBPUSD and EURUSDOPENBUY (top) takes place at the price of ASK, a CLOSE - the price BID; OPENSELL (down) - the price BID, and CLOSE - at the price of ASK.
Now, look at useful trading tools to a certain extent protect you against unforeseen losses and record the planned profit.
It - STOP and LIMIT. In the previously open position at any time (but the working hours of the market) can be instructed to put it close when the price of a particular currency values. For example, you open a position, hoping that the quotes go up (on the schedule), while to hedge against significant loss with a significant movement of the currency down, especially in a situation where you can not control or lose control of the market, you bet STOP ie You specify the value of the price below its current value at which your position should be closed without further guidance. Similarly, if you are open down, you specify the price above its current value. At the same time you should keep in mind that if STOP will stand too close to the current value, the random bounce rates can close with a loss correctly open position, and if too far away - losses can be unreasonably high. In turn LIMIT - it said you quote above which the position will be closed at a profit, that is, quotation on LIMIT - is always higher than the current value if you play up, and below - if you play down. It should be noted that in our trading system and STOP LIMITdolzhny defend at least 20 points from the current value of the BID or ASK (according to which way you play, and what set the limiter).
We hope that this brief description will be enough to try your hand and check the intuition to work in the market FOREX.
A few words about the differences in the trading system and service while working at the training (training) account and trades.
In the quotation on the demo account real quoting does not occur, and the offered price corresponds to a slightly modified BID / ASK (depending on which way you open). Naturally, the real account the price offered is generally not the same as the BID / ASK (unlike on a quiet market, as a rule, is 1-2-3 points, sometimes in your favor, often - against).
The time delay between the request and offer prices (about 10 sec.) In the training account to some extent mimics the real time delay when quoting, which is typically about 40 - 50 seconds. (Sometimes more). It should be borne in mind that the proposed price corresponds to the quotation at the time of bidding, not its request.
In addition to the analytical system and trading platform AFMCharts AFMDealer, when working on a real account the trader is able to download from the server using AFMIDLe current quotes for the technical analysis of the data in MetaStock 6.0-6.51.
The rest of the work with real and demo account does not differ (if not to consider the financial part).
To learn how to analyze and predict the behavior of the exchange market, we invite you to listen to lectures on the course "Trading foreign exchange dealing operations."
No comments:
Post a Comment