Sunday, September 13, 2009

Forex technical terms

Ratio / quota or quota Rate is the rate of currency compared with the others. Key currency The base currency is the first currency in any exchange of my husband. Determine the value of currency in exchange for the interview. (For example, if the ratio of the exchange pair Euro / U.S. $ 1.3525, the euro is the base currency and the value of 1.3525 U.S. dollars). The counter (also known as the indicative price or a point).

The counter is the second currency in any exchange of my husband. And define the basic value for the currency. value. (For example, in the exchange pair is the next Euro / U.S. Dollar currency, the opposite is the U.S. dollar). Offer price (also known as the purchase price)) Offer price (the price to give the area the left) is the price at which traders buy the base currency. If you think that the value of the euro will go down if you choose to buy - you can buy the euro price of the dollar before the indicative price given. Rate of demand (also known at the sale price or demand) Demand the application rate (to give the region the right price) is the price at which dealers sell the base currency. If you think that the value of the euro will rise if you choose to sell - could sell the euro to the dollar before the U.S. price in the price of the application. The difference between the price of supply and demand.) Points (also known as points) One point, 0.0001 of a unit, Journal of Trading Trading is open daily and close deals on the same day of trading. The cost of trading The cost of trading is the price when trading against. Calculated in this way the cost of trading = sale price - purchase price Avoid loss Type of Trade Center to close upon the arrival of a fixed rate to avoid a sale of the loss. You can choose to sell to avoid the loss to reduce the loss when the market affected by the opposite of what you expect. The margin of Is a sum of money placed in trust as collateral to cover possible future loss. Leverage (× 400) Lifting Almaliho get a loan from the seller or dealer, and then you can do to a business transaction fast and cheap, a small amount of the capital. Expressed as a percentage of total capital (located) and real capital (which is the amount of money we borrow). (Eg, 1:400, which allows the lifting of financial purchase or sale of 10000 U.S. dollars to 25 U.S. dollars). Please Note Trade currencies on margin, or lift more than a purchase. If you have 25 dollars in cash in the calculation of the margin has 400:1 Leverage, you can buy the currency value of U.S. $ 10000 that you have to put 0.25% of the purchase price as collateral. This means that while you have 25 dollars in cash and now you have 10000 dollars value of the purchase. On the other hand, while the purchasing power of your profitability more than it increases the Ksartk. We advise you to take the advice of very little time to understand the risks. Make sure to read the margin agreement in order to understand how it works for calculating the margin, and ask questions when going through things is not clear to you.

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