What is Forex
Learning to trade in a new market is like learning to speak a new language. It’s easier when you have a good vocabulary and understand some basic ideas and concepts. So let’s start with the basics of forex trading before moving on to learn how to use the Trading Station. For a more in depth introduction to the forex market, get FXCM’s New to Forex Trading Guide.
WHAT AM I DOING WHEN I TRADE FOREX
Forex is a commonly used abbreviation for “foreign exchange,” and it is typically used to describe trading in the foreign exchange market by investors and speculators.
For example, imagine a situation where the U.S. dollar is expected to weaken in value relative to the euro. A forex trader in this situation will sell dollars and buy euros. If the euro strengthens, the purchasing power to buy dollars has now increased. The trader can now buy back more dollars than they had to begin with, making a profit.
This is similar to stock trading. A stock trader will buy a stock if they think its price will rise in the future and sell a stock if they think its price will fall in the future. Similarly, a forex trader will buy a currency pair if they expect its exchange rate will rise in the future and sell a currency pair if they expect its exchange rate will fall in the future.
WHAT IS AN EXCHANGE RATE
The foreign exchange market is a global decentralized marketplace that determines the relative values of different currencies. Unlike other markets, there is no centralized depository or exchange where transactions are conducted. Instead, these transactions are conducted by several market participants in several locations. It is rare that any two currencies will be identical to one another in value, and it’s also rare that any two currencies will maintain the same relative value for more than a short period of time. In forex, the exchange rate between two currencies constantly changes.
For example, on January 3, 2011, one euro was worth about $1.33. By May 3, 2011, one euro was worth about $1.48. The euro increased in value by about 10% relative to the U.S. dollar during this time.
WHY DO EXCHANGE RATES CHANGE
Currencies trade on an open market, just like stocks, bonds, computers, cars, and many other goods and services. A currency’s value fluctuates as its supply and demand fluctuates, just like anything else.
An increase in supply or a decrease in demand for a currency can cause the value of that currency to fall.
A decrease in the supply or an increase in demand for a currency can cause the value of that currency to rise.
A big benefit to forex trading is that you can buy or sell any currency pair, at any time subject to available liquidity. So if you think the Eurozone is going to break apart, you can sell the euro and buy the dollar (sell EUR/USD). If you think the price of gold is going to go up, based on historical correlation patterns you can buy the Australian dollar and sell the U.S. dollar (buy AUD/USD).
This also means that there really is no such thing as a “bear market,” in the traditional sense. You can make (or lose) money when the market is trending up or down.
HOW DO YOU READ A QUOTE
Because you are always comparing one currency to another, forex is quoted in pairs. This may seem confusing at first, but it is actually pretty straightforward. For example, the EUR/USD at 1.4022 shows how much one euro (EUR) is worth in U.S. dollars (USD).
WHAT IS A LOT
A lot is the smallest trade size available. FXCM accounts have a standard lot size of 1,000 units of currency. Account holders can however place trades of different sizes, so long as they are in increments of 1,000 units like, 2,000, 3,000, 15,000, 112,000 etc.
WHAT IS A PIP
A pip is the unit you count profit or loss in. Most currency pairs, except Japanese yen pairs, are quoted to four decimal places. This fourth spot after the decimal point (at one 100th of a cent) is typically what one watches to count “pips”. Every point that place in the quote moves is 1 pip of movement. For example, if the EUR/USD rises from 1.4022 to 1.4027, the EUR/USD has risen 5 pips.
WHAT IS LEVERAGE/MARGIN
As mentioned before, all trades are executed using borrowed money. This allows you to take advantage of leverage. Leverage of 400:1 allows you to trade with $1,000 in the market by setting aside only $2.50 as a security deposit. This means that you can take advantage of even the smallest movements in currencies by controlling more money in the market than you have in your account. On the other hand, leverage can significantly increase your losses. Trading foreign exchange with any level of leverage may not be suitable for all investors.
The specific amount that you are required to put aside to hold a position is referred to as your margin requirement. Margin can be thought of as a good faith deposit required to maintain open positions. This is not a fee or a transaction cost, it is simply a portion of your account equity set aside and allocated as a margin deposit. Learn more about FXCM’s Margin Requirements.
Como enamorar a la mujer que te gusta en 5 pasos sencillos
Hay muchos chicos que se fijan en una chica especial y quizás tú seas uno de ellos. Este artículo te enseñará la manera de conseguir una cita con esa chica que te gusta en lugar de desperdiciar tú tiempo simplemente observándola.
Y lo peor los chicos cuando están en grupito molestan a las chicas y lo mismo puede están pasando contigo cuando sabes que la chica te gusta y no puedes acércate, sigue estos sencillos pasos para conquistar el amor de tu vida y tenerla siempre a tu lado.
1.- Rompe tu paradigma: El miedo. Si te gusta, te interesa, quieres que sea para ti la mujer que miras tanto, olvida atrás el miedo acércate y habla, averigua las cosas que ambos tienen en común.
- Intenta tener un espacio de tiempo a solas con ella: Debes invitar a salir caminar a lugares hermosos que le llamen la atención, durante el recorrido demuestra los pequeños gestos de afecto de cómo tratarla será importante para que marques diferencia y que sienta que no eres como todos los hombres que piensan las mujeres.
- Envíale una carta muy romántico, una rosa. No es necesario que te sacrifiques en grandes regalos ni mucho dinero, esos pequeños y dulces detalles significarán mucho para ella y también le permitirá saber que está en tu mente y que te preocupas por ella.
- No debes buscar tener relaciones sexuales apenas que conociste: Es un error que todos cometen, si la amas respeta dale el tiempo al tiempo, demuestra que la amas que solo vendrá en su momento. Muchas mujeres piensan que los hombres solo buscan placer tener relaciones sexuales nada ven en serio, tú se diferente.
- Lo más importante si has conseguido la mujer que amas debe ser para siempre: Sin embargo en el camino tendrás que luchar respetarla, quererla, amarla, siempre darle los detalles como conquistaste al inicio llevarle flores, despertar siempre ese amor que encontraron ambos: Recuerda la mujer es como una flor si no la riegas se marchita, vendrán tormentas, sequias todo pero para eso debes estar preparado.