Back to some of the FOREX terms-2

Double - Leverage

 It is the ratio between the value of the item that you want to be traded between the value of the bond that asks you to pay (used margin) to allow you to trade in this commodity.
The multiplier can be calculated by the following equation:

Doubling the number of contracts * = per contract size / margin User

If we assume that the car agency will allow you to trade a car and one (1 Lot) valued at $ 10,000 compared to be deducted from your account the amount of $ 1,000 for each user Lott margin .. You can calculate the multiplier ratio:
Doubling the number of contracts * = per contract size / margin User
= 1 * $ 10,000 / $ 1000 = 10
 
Which can be expressed as 1:10 for every $ 1 you pay margin user will be multiplied ten-fold, ie for every $ 1,000 paid by a margin user you can trade in a commodity worth $ 10,000

Q: I suppose that there are cars Agency will allow you to trade four cars each worth $ 10,000 for every $ 1,000 paid by the user how much margin leverage ratio provided by this agency?

Answer: multiplier = number of contracts * contract size / margin User
= 4 * $ 10,000 / $ 1,000 = 40
 
And it can be expressed as 40:1 means that for every $ 1,000 is deducted user you can trade margin commodity worth $ 40,000 which is equivalent to 4 cars at once.
The leverage ratio that could give you vary from one institution to another, one of the basic information that Starafha before handling the marginal system.

Back to some of the FOREX terms-1

We have had so far a lot of very important concepts to understand the mechanism of trading, and although it is clear concepts does not have a lot of complexity, it is important to reaffirm them as they represent the cornerstone in understanding the principles of work in trading in global markets.

Of the concepts that we have mentioned:

Per unit of goods Unit

They are less extent can be traded by Item. Called Lott - Lot. Dealing institutions that operate the system with marginal things could be traded are fixed units each unit called Lotte lot. In our previous example, the item is the car and per unit of which is a single car, a less extent you can be traded.
You can not be traded half a car .. But you can trade in multiples of this unit which you can trade two cars or three, etc.

In our previous example Lot = one car.

There are institutions that allow you to trade textured soy Soy beans and be less trading limit is 5000 bushels Bushel - a unit of weight - which that Lout here = 5,000 bushels

 . And there are institutions that allow you to trade in gold and be less trading limit is 560 ounces of any that Lout here = 560 ounces.
You can trade Baloot or two or three and Bamadaafath, and you can not be traded half lot or Baloot and a half.

Size of the contract - Contract Size

Is the actual value of the commodity company that allows you to trade him.
In our previous example, the item is a car and its actual value = $ 10,000
When you buy 1 lot of requests from the agency means that you ask to buy one car worth $ 10,000 and when you ask to buy 2 Lott meaning that you ask to buy two cars worth $ 20,000 (2 * 10.000), and so on ..
Contract size varies from one institution to another, one of the basic information that Starafha before dealing with the institution that will open a space for margin trading system.

Strategy of dividing capital in the forex trading

From my point of view modest, which combines them certainly all the experts and successful in this market interesting and serious at the same time that the reason for success in Forex - after reconciling God - centered in Kvtin is a successful strategy strict + capital management sound equally between them (50% - 50% ) On the contrary, if he wants one that is likely one of the both sides Valaptakid will be capital management odds might be the cause of 70% success for the sound management ... Yes, do not exaggerate!! It is simply set out to find your position more than successful losers and ultimately a loser and vice account quite possibly find other stores number of dealings losers more than winning and earned a profit .... So what?? Answer simply managing capital.
So you want to put in your hands the secret of proper capital management smoothly and quietly and without complications included a very simple equation, but he considered the gold Capital Management

Capital management consists of two parts (management) any good handling and management and (capital) any you're dealing with quantities and numbers so When entering into any deal after selecting your view  based on your analytics technical and fundamental immediately to mind a set of important questions, which will determine how the success transaction and Thakbgaha of the desired goal

- How many points target (Proft Tech) and the number of points loss (stop Luz)?
- What is the percentage of loss would be her account in case the deal ended on a loss (ie risk)?
- What is the ideal value of the contract, who used it?? The most appropriate lever for it??
Are all important questions, and is considered one of the basic fundamentals of any trade Forex is not only successful but unfortunately many people did not stop then only tiger often unnoticed for fighting in the analysis directly!!
So to answer these questions and investigated the safest ways to reach out to a successful transaction, God willing, (because the most important thing before profit is capital preservation of continuity which can be inspected in the minutes and the main reason, of course, mismanagement)


You should follow the following steps:

1 - Risk-Reward Ratio (risk to reward ratio):
It is very important to be a number of possible points pounds more than the number of points is likely to lose in order to be a real opportunity and well worth the adventure, the best ratio for
Risk: Reward = Loss: Profit is 1:2
I mean, if we assume that you want to enter in order to deal 60 points, it is advisable to be our stop Luz 30 points. In the worst cases, be a 1:1 ratio and this ratio best in scalping.

2 - (equation Gold) to determine the percentage of loss of capital - the value of the contract (lot) - Leverage (Leverage): very very Important :
Now after using various analytical gadgets found a chance on the euro-dollar, for example, to 50 points and Astop 25 or 30 points ........ Now any contract use? Thus any crane? Even the loss of financial capital equal to 2% in the case of the 30 points lost ........... After thinking came to a simple equation to determine all these values very easily.
Gold equation:
>>> Leverage = (Risk × 100) \ Pips of Stop Loss <<<
>>> = Leverage (risk x 100) / number of points, stop loss <<<
- And then through the leverage to determine the value of the contract (lot).
Equation very simple and Petkrrha to once or least two will not need to save but will know values intuitively
Now explain the example of the District equation:
Suppose you as we have found a chance to win 50 points and risk by 25 points and you want to be in the event of a loss of 25 points that represent 2% of your account (ie, if your $ 1000 that is equal to the loss $ 20) so-Fi contract use this?? What Snstanottagh of leverage that we will count easily ......... Data from the previous permission:
Leverage = 2 × 100/25 = 8 (Note used in the equation in the variable number of dots 25 points, which is the value of stop loss and not 50 because, as we said what first interested in the potential loss of either Profit welcome)

Any 8 contracts Micro Flo you finally calculates the loss of 25 points from 8 contracts Micro'll find 20 dollars, representing 2% of your capital is $ 1000 ........ Uh, do you think?


- Conclusion:
1 - Goal: L = 1:2 or more ............ And in the worst cases 1:1 in case.
2 - equation Gold: Leverage = Risk x 100 / number of stop-loss points.
- Nominations personal:
The risk of head of the owner does not make more than 5% (2-5%).

Used and Usable margin

When you open an account with a company that allows trading on a margin which will be deposited in advance a fixed amount will remain this amount without prejudice to decide to buy a car, or to decide to enter into a deal, then your account will be divided into two parts:

Used margin: a deposit which will be deducted in advance, which is a refundable deposit will be returned to your account after the sale of the car, whether sold at a profit or a loss.

Margin: which is the amount left in your account after deducting the user margin, and this amount is the maximum amount that allows you to defeat in the transaction.

How calculated margin username?

We do not want that much interested in how to calculate the user's own margin often will not need it where you company will determine in advance the amount that will be deducted from your account as a token for every unit of the commodity. In the previous example, the agency will tell cars it will be deducted the amount of $ 1,000 from your margin account user for every car purchased. If I bought two cars will be deducted from your $ 2,000 margin will remain in the user account $ 1,000 margin available.

In spite of that the company will deal with Stgnek about the need for a margin account user on your own, but it would be very useful to know how to do it yourself.
Can calculate the margin of the user who will be his opponent as a token of any commodity provider with any company the following equation:

Used margin = full value of the item purchased / multiplier ratio

In the previous example: full value of the car = $ 10,000 and leverage ratio allowed by the company is 10 times, which means that the company has doubled you 10 times the capital, so the margin which agency St_khasmh:

Used margin = full value of the item / multiplier ratio
                  = 10,000 / 10 = $ 1,000

Had I thought about buying cars instead of the car will be used margin which will be deducted from your account:
Used margin = 20,000 / 10 = $ 2,000

In global markets deal that will allow brokerage firms to trade on a margin of various types of goods for each company a certain quality of goods, are sold every kind on the basis of a fixed unit called the size of the contract is less and are traded unit of the commodity.
In the previous example, the cars will be the size of the contract = one car worth $ 10,000, that is, you can not trade for less than a car worth $ 10,000 and you can be traded in multiples of this number was traded two cars or three, etc. ..
The course allows you to trade a car and a half!!

And the method of calculating the margin User:

Used margin = number of contracts * contract size / multiplier ratio

And you will know the size of the contract deal by the company and the proportion of multiplexed in advance to deal with, one of the things that may vary from one company to another.

In our previous example:

We know that the size of the contract = one car worth $ 10,000 and that the multiplier ratio = 10
So we know that if we traded the car amount which St_khasmh and the cars of Our agency is:
Used margin = number of contracts * contract size / multiplier ratio
                  = 1 * 10,000 / 10 = $ 1,000
But if we wanted to buy two cars will be:
Used margin = number of contracts * contract size / multiplier ratio
                  = 2 * 10,000 / 10 = $ 2,000

So you can calculate the margin used for any number of cars If we assume that you want to buy 3 cars once will be charged the amount of $ 3,000 margin the user.

If we assume that you have dealt with the agency cars have the same value of the car but they give you a percentage increase equal to 20 times means that this agency will allow you to trade Bassarat worth 20 times the amount paid as a token, you can calculate how much is the margin which will be deducted if you want to trade a car one:
Used margin = number of contracts * contract size / multiplier ratio
                  = 1 * 10,000 / 20 = $ 500
Means that this agency will be deducted from your account the amount of $ 500 for every car trade.

 How calculated margin?

Calculated by the following simple equation:

Margin = Equity - Margin user

Only the previous example:

If you deposit $ 3,000 in advance in your account that you opened the agency cars Frshehadk to have = $ 3,000
When I decided to buy a car, the company deduct the $ 1,000 margin the user, it will be the margin you have available now:
Margin = Equity - Margin user
               = 3000 - 1000 = $ 2000
It is the maximum amount you can lose in the deal.

If we assume that you decided to buy two cars, $ 2,000 will be deducted user margin and margin will be available for you now:
Margin = Equity - Margin user
              = 3000 - 2000 = $ 1000
It is the maximum amount you can lose in the deal.

Until now it has become to learn the following:

    That the system of margin trading is a system that allows you the possibility to trade goods worth more than your capital fold.
    This is the kind of trade deal with the private companies are doubling your capital several times as it allows you to trade a commodity exchange for discount fraction of its value as a token of the user.
    Not sharing these companies in terms of profit or loss only asking you to pay the full value of the item sold and limited mission to the implementation of the buy and sell orders that you set a price that you choose.

If ordered to sell the item at a higher price than the purchase price it will be implemented and will be deducted full value of the item and would you Arbounk its profit plus full and like you own the item actually. If ordered to sell item at a lower price than the purchase price it will be implemented and will be deducted from your account to have completed a full value of the item.

General principles in the system marginal

General idea of ​​the style of work on a margin

What is meant by a margin work?
To be able to understand the mechanism of action on a margin easily we will explain by example imperceptible will accompany us all the time.
Suppose you want to trade cars so that you are buying a car then you are selling in the market for a buyer at a higher price, how you do it?
Go to one of the big car agencies will choose a car that you think you will find an application in the market to assume that the price of the car with the car agency is $ 10,000.
All you need is to provide this amount and pay for a car agency and thus the owner of a car worth $ 10,000 .. Since the purpose of buying a car is traded, you will go to the market and offer your car in the hope that it sells at a higher price than the price you bought it.
Now suppose that when you went to the market and found that the demand for the high quality of your car and there are a lot of people would like to buy .. then will display your car at $ 12,000, for example ..
If I sold this price is your profit net of trading this vehicle $ 2,000, but what if I went to the market and found that the demand for quality car is weak and that there is no one wants to buy at $ 10,000 and the maximum price one can buy a car it is 8000 $?
So what does that mean?
Simply means you if you sell at this price, lost in trading this vehicle would be $ 2,000. It's a clear process is much work every day .. and you can do so you too.
But hey ..!!
To the previous process then you have to be a property to the amount of $ 10,000 from the outset to be able to buy a car purchase it .. This is your capital in trading.
If you do not have this amount will not be able to buy the car and thus will not be able to sell them in the market .. This means that in order to be able to trade cars must be the property of the whole value of the car I. ..
Is there a way for you with this process without having to have $ 10,000?
Yes there is a way .. It is the modus operandi Margin Trading in margin basis
How so?
Why Oukal you agency owner cars: "If you want to buy a car for trading with no need to pay me $ 10,000 full value of all that is required of you is to pay me a token provider worth only $ 1000 and I'm going to book the car in your name even given you the opportunity to sell them in the market Then bring me the rest of the value. " It's a great opportunity and no doubt ..
Notice we said here, "reserve" the car in your name .. Any agency that cars will not actually give you the car, but will be booked in your name and put them at your disposal for the purpose of trading them so that you can sell at the price you want and like you actually owned.
But why you would give me a car?
You did not just pay only ten worth .. the car gave you may take them and get used ..!!
So it will not give me the car but resrve the name but remainder of their ..
So how do I trade it?
Well .. when you know that you have a car reserved in your name for trading and that you can sell at the price you want it you can now go to the market and find a buyer at a higher price than the purchase price of the car.
To transport you in the market found a buyer for the car at $ 12,000 then to order the agency to sell the car buyer car reserved in your name at the price of $ 12,000.
The buyer will pay a $ 12,000 car and pick it up ..
Car agency will deduct the value of the car is $ 10,000 and will respond you Arbounk as you paid a $ 1,000 plus a full profit is $ 2000. As you to اتنوي originally only trading drive you differentiate it will not get on the car or actually remain with the car agency.
It is important that you have had the opportunity to trade a commodity worth ten times the amount you paid and got a full profit like you own the item actually.
In this way, ensure car agency access to the full value of the car and you also get the full profit.
And this everyone will be happy!!
In the previous example as soon as your payment for the amount of $ 1,000 managed to get a profit of $ 2,000 or 200% of your capital paid just for you and found a company that allows you to pay a fraction of the value of the item you want to be traded.
It's a great opportunity right? But how did this happen?
This happened because the car agency owner allowed you the opportunity to double leverage your capital is paid $ 1,000 to ten-fold to $ 10,000, thus allowing you the opportunity to trade commodity actual value ten times larger than the value of your capital paid.
This so-called double or capital Leverage Leverage.
When you get the possibility to double your capital ten-fold meaning that you versus your payment - your investment - the amount of it you have the opportunity to trade a commodity worth more than ten times the value of your capital.
And when you get the possibility of doubling your capital to one hundred times meaning that you return for payment of the amount of what it is you will have the opportunity to trade a commodity worth more than a hundred times the value of your capital.
And you'll get the full profit like you own the item effectively.
If we apply it to the previous example it is against the payment of the amount of $ 10,000 you will have the opportunity to trade cars worth $ 100,000 a dozen cars one time .. If you win on each car the amount of $ 2,000 means that the profit on the transaction is complete (2000 * 10 = $ 20,000) will get fully all that profit in return for your investment to the amount of $ 10,000 as a token of the redeemer will return to you in the end!!
Is this reasonable?
Yes reasonable .. It is what happens in the hundreds of millions per day in the financial markets and margin trading system.
Did you know now how to make millions?!
To go back to our previous example:
At first mentioned regular trading method and has the following form:
You make a purchase through the payment for the entire value of the car.
You go to the market and offer an item for sale.
You have to sell.
If you sell your car at a higher price than the purchase price will be a winner, but I sold it at a lower price than the purchase price will be a loser.
But when you have margin trading in a way, this is what happened:
You buy from the auto dealership to double your capital ten times so that you pay the $ 1000 $ token-refundable and you temporarily so the owner of the car until it is sold and re-valued.
When you pay $ 1,000 agency gave you the possibility of trading drive vehicles valued at $ 10,000, any trading It Mkntek of ten times your capital. I went to the market and offered an item owned by temporarily for sale. You sell so that the agency ordered the cars to sell the car owned by temporarily - and they already have in your name - the buyer who found him in the market at a price that you specify.
The agency implementation of the cars it has sold the car to the buyer, and then deducted the original value - that car Batk it - no $ 10,000 and Slmtk rest the gain net you and you re-deposit you paid in the beginning.
Note here ..
That when the agency cars to double your capital ten times, they have done so to allow you the opportunity to trade the value of a car (items) worth more than 10 times the value of what you paid for that you pay the rest of the value of the car after you sell, or when you are paid the amount of $ 1,000 has become an owner temporarily for a car, you become indebted to the Agency cars in the amount of $ 10,000 to pay full value of the car, where the amount of $ 1,000 which paid is just a refundable deposit upon payment.
If you order the cars that the agency sell the car for $ 12,000, they will implement it will deduct the $ 10,000 value of the car will bring you first deposit you paid plus the $ 2,000 is profit in trading.
But what if I sold the car at a price lower than the purchase price?
What if I sold the amount of $ 8,000, for example? Then you will be prompted to complete the value of a car of your own pocket, which will be required to pay the amount of $ 2,000 in order to complete the value then recover Arbounk of the car you paid in advance.
Just as the agency cars تشاركك not profit are also not share loss.
Whether you win or lose they are not only asking you to pay the full value of the car after the sale, if ordered to sell the car at a higher price than the purchase price it will be implemented and will be deducted the value of the car then you are fully Arbounk plus profit.
If ordered to sell the car for less than the purchase price, will be implemented command also Stelzmk the pay from your own pocket completes a full value of the car, and this amount is lost in this deal.
In the previous example, when the vehicle is sold in the amount of $ 8,000 it is you need to add from your pocket amount of $ 2,000 to become the amount of $ 10,000 and the Agency for payment of car are you bear the loss and not the agency, and in all cases recovered paid Arbounk the advance.
But why not delude car agency?!
Well: When we started our dealings with the agency vehicles that allow us to double the capital tenfold everything that we have paid is the amount of $ 1,000, and when commanded agency cars to sell the car at $ 12,000 - after that we found her on a buyer at this price - the Agency to sell the car at a price that we set and brought us full deposit plus profit.
If: If you ordered the agency to sell the car at the price of $ 8000 will not add to bocket something just with the car agency is $ 1,000, so we're going to make the agency are the cars that bear the loss ..
So you will not pay anything ... We'll run away ..!!
So that does not really happen, the agency dealing with the way cars margin has a special system we can Nkhtzareth a single sentence:
Must deposit the maximum amount that can be lost in the deal in advance with the car agency.
How so?
So you have the opportunity to margin trading system which allows you to operate most of your size ten-fold the agency Auto following we have to: to open their account and deposited the amount of $ 3,000, for example. This amount will be deposited in advance with the car agency.
The agency will return to double your capital car ten times leverage and will allow you to trade a commodity exchange to pay ten worth only a token refundable only.
You will buy a car, since it does not only need to pay ten value, including the value of $ 10,000, it need only pay a token $ 1000 refundable.
When you buy a car deposit will be deducted from your account any discount will $ 1,000 Snsmi a "user margin used margin".
Will remain in your account is now $ 2,000 is used Sensmiha "margin usable margin". This amount will be the maximum amount you can afford to lose the deal.
The agency thus ensuring that you are the car will bear the loss that occurred and are not, and will not be afraid to run away because there have in your account the amount you can afford to lose.
When you order the agency to sell cars car in the amount of $ 12,000 will be implemented agency it will sell the car and deducted $ 10,000 value of the car and would Arbounk plus profit fully and will add on your account has thus become your account has = $ 5,000.
But if you ordered the agency cars to sell the car at a lower price than the purchase price for the transfer of $ 8,000 will Agency cars implementation it will sell the car and then deducted $ 2,000 from your account has to complete the rest of the price of the car, then would you Arbounk to your account and become your account has only $ 1000.
Do you know why this method is called to work "margin trading system"?
This is because it is dealing and trading on the margin of profit and loss in commodity trading without having to pay the full value, added profit of the transaction to calculate the shops and deduct the loss of margin account stores.
What also understand?
Understand that you can not in any transaction to lose more than the amount in the account with the company that allows you to margin trading system.

Is Forex Trading Profitable? - World stock

Who end up looking for opportunities to make a profit on forex portals and agents question that everyone Are Profitable Forex Trading?, So when glamourize opportunities to make a profit in the currency exchange market. In many cases, people start creating dreams of achieving high status as currency traders also arrived George Soros and Warren Buffett. If these two can not success the rest of the people can not? This seems arrogant behavior as the driving force that drives people to try to engage in foreign exchange trade.

The fact that the forex market - currency exchange

Might not never know how many people were able to achieve a profit in the currency trading market. Who knows is a trader and his agent who adhere to the Constitution necessary secrecy by banking institutions in relation to the accounts of the merchants. How many people are losing money in Forex Trading? Possible to predict this because usually starts traders losers Bloom all persons and circumstances - except themselves - which led to the failure. Making a hustle wherever they go so that you Stlahzam not prepare them. If you take your answer to the question "Is Forex Trading Profitable?" Based on their numbers, could end up to be considered as forex trading is profitable.

Are Profitable Forex Trading

On the other hand, if you will go the same question people have made piles of profits in Forex Trading and you will be asked the same question Is Profitable Forex Trading?, You'll get a frank answer. Because these people will not disclose to the world the amount of money that earn because the problems and the owners of Internal Revenue for themselves. Can not define the actual number of these people who are making profit through the Internet but certainly there is a small amount of traders who are making huge profits and prefer to stay in the shade and not reveal professional with their secrets.

But if you're too serious to know whether profitable forex trading, you can hardly get some numbers by the Commission on the future of trade goods (CFTC) is the governing authority Forex agents in the state. Thanks to legislation Dowd Frank (dood-Frank) and that has been activated in the month of October of 2010, the agents Forex online and who want to publish their services on American land registration in CFTC them some approval requirements. One of these requirements is to report on the percentage of profit or non-profit to customers and trade, which are carried out under the supervision of a forex agents.

The good news comes in the latest report by the United States, has announced some agents Forex profit rate up to 28.5% and another department announced earnings ratio reached 50%. And the disposal of these facts, any doubts about the possibility of making profits in forex trading.

But do not rush to stand at the gates of forex agents. These numbers can fluctuate. As exchange rates change in the market these numbers can rise or fall. In the first place, subject to profit in Forex Trading for several influential factors on the exchange rate on every trader to understand and absorb before it becomes part of the Winning Stats. In addition, it understood that the agent who has a successful past does not guarantee that repeat the success in the future.

Best Forex platforms versus other Forex programs

Best Forex platforms versus other Forex programs, may be finding the best commercial exchange platform is especially difficult for new traders. The fact that there are also many trading platforms available today makes it more difficult to search which makes traders choose the first platform comes in their way. But taking the importance of the role of platforms in business operations should not be the case, it makes sense that people make their best to get the best possible platform.

Types of trading platforms

There are two types of platforms available today. First hand and connected directly to the agent. Through this platform, traders can communicate with their agents to implement trade deals handy. Podium second most popular today is that work automatically. Think of it as a program does everything, it provides everything merchants such as tables, charts and currency converters and current values. Usually traders prefer this kind because it provides all that is needed to carry out the decisions of traders logical and rational regard to commercial Besvqathm. These platforms help traders determine the next best step that will make them realize a profit.

Recipes trade programs

Must have the following qualities in the best commercial exchange programs:

    Dealing with multiple trading accounts: This may not be always possible because the trading platforms are usually supplied by the agent. There are many of today's trading platforms that allow access to multiple markets together, which doubles the chance trader in profit.
    Keep pace with the flow of data: Because the trade market is surprisingly fickle is important to be constantly updated data presented. Provide a good trading platform the latest developments until the last second.
    Easy to use: you must work platform with a single button press so as to enable traders to buy or sell easily without going through a complicated process. The good news is that most platforms today come with this property. And preferably also contain educational videos for new traders.

Businessmen

How do you choose the platform

There are many factors that must be considered when searching for the best trading platform. In addition to what was mentioned earlier, traders are also advised to record and compare specific factors believed as important as speed and price efficiency of the program for the existing operator to have. From here, they can choose the best trading platform in accordance with their own needs.

It is not surprising to find traders experts vigilant when it comes to commercial platforms that they use. Taking into consideration the importance of the sense to seek to choose the best trade platforms. However note that trading platforms usually carry the qualities necessary to carry out the exchange, which makes it look difficult to use at first. For this new traders are advised to use a demo account at the outset to workout their accounts before the real deal in the market.