If you are interested in Forex trading, there are some basic things that you need to know before you actually sit down at the table and start working. The first and arguably most important of these things is that Forex trading can be done through long and short positions, allowing you to take a particular currency and either buy more of that currency or sell what you have of the currency in order to try and catch a particular trend that might be forming at that very moment. It is a volatile and difficult discipline to master, but fortunately for the millions of people that now trade Forex online from the comfort of their own homes, the entry level to become a Forex trader is not at all difficult to achieve.
The basic anatomy of Forex is mathematical in nature. Currency values within Forex are usually reported to the forth decimal figure as most of the currencies of the world have a sub-currency unit that is worth 0.01 of the overall currency. This therefore means that currency values within Forex are reported to the 1/100 of a cent (or other equivalent sub-currency unit) and that particular quantity is also known as a pip. Pips are the main mathematical unit within Forex trading and if you want to become a successful Forex trader over the long term you are going to have to get used to hearing about things talked about in terms of pips. Pip movements are what Forex trading is all about. If you have a currency valued at 1.0000 and that currency then moves to 1.0001, it is said to have made a pip movement of +1. Likewise, a move to 0.9999 would be a pip movement of -1.
When you sign up for a standard Forex online account, you are given the chance to deposit into your online account. Generally speaking, depositing around $3000 into that account will allow you to leverage on that amount and wager in the Forex market with around $100,000, most of which is loaned to you through the broker through a margin loan. If you do the math, you’ll be able to figure out that investing with $100,000 in the Forex market will mean that every pip is worth $10. If you gain 10 pips before you close the deal, you will have gained $100 in cash due to the fact that you were able to leverage the amount of money that you put into the system.
In the online world however, a standard account is not the only Forex account that is available for people to use. Online Forex brokers also offer micro accounts which are accounts that allow you to deposit an amount in the neighbourhood of $300 in order to control a larger amount of $10,000 when you make your investments. Pips in this area are worth $1, but the smaller amount of minimum deposit required to control these accounts makes them ideal as starting positions for novice Forex traders looking to get their feet wet in investing.
The basic anatomy of Forex is mathematical in nature. Currency values within Forex are usually reported to the forth decimal figure as most of the currencies of the world have a sub-currency unit that is worth 0.01 of the overall currency. This therefore means that currency values within Forex are reported to the 1/100 of a cent (or other equivalent sub-currency unit) and that particular quantity is also known as a pip. Pips are the main mathematical unit within Forex trading and if you want to become a successful Forex trader over the long term you are going to have to get used to hearing about things talked about in terms of pips. Pip movements are what Forex trading is all about. If you have a currency valued at 1.0000 and that currency then moves to 1.0001, it is said to have made a pip movement of +1. Likewise, a move to 0.9999 would be a pip movement of -1.
When you sign up for a standard Forex online account, you are given the chance to deposit into your online account. Generally speaking, depositing around $3000 into that account will allow you to leverage on that amount and wager in the Forex market with around $100,000, most of which is loaned to you through the broker through a margin loan. If you do the math, you’ll be able to figure out that investing with $100,000 in the Forex market will mean that every pip is worth $10. If you gain 10 pips before you close the deal, you will have gained $100 in cash due to the fact that you were able to leverage the amount of money that you put into the system.
In the online world however, a standard account is not the only Forex account that is available for people to use. Online Forex brokers also offer micro accounts which are accounts that allow you to deposit an amount in the neighbourhood of $300 in order to control a larger amount of $10,000 when you make your investments. Pips in this area are worth $1, but the smaller amount of minimum deposit required to control these accounts makes them ideal as starting positions for novice Forex traders looking to get their feet wet in investing.
Tidak ada komentar:
Posting Komentar