Basic things about Forex Part I

Currency pairs, the sell / buy and gains / losses.

Forex (foreign exchange). Well,  how it works? I do not want a convoluted in the basic things. I discussed will directly refer to the online forex trading through a broker Marketiva. On the other brokers is also approximately the same, only on Marketiva, software used is Streamster, you can download it for free on the link that I have made. On the other brokers, usually trading terminal or software that is used is MT4.

Transactions on forex trading will take place when you send an order (send order). Send an order form on Maketiva will look like in the picture below. There is the column Buy / sell. You need to fill it with a buy or sell. Buy or sell position in a currency pair mean like this. Buy position on the pair EUR / USD means that you buy EUR and sell USD. Sell ​​position at the pair EUR / USD means that you sell EUR and buy USD.

Buy position will result in profit  if it turns out prices on rising currency pair. Namely the movement of the graph that rises up from the position of your purchase price. For example: you plug in a position to buy at a price of EUR / USD = 1.2700 and then rising to the position of the chart price of EUR / USD = 1.2730. then you get a gain of quantity used multiplied by the point of change, in the example of 30 points. The logic is that you buy goods at low prices and then the price of goods go up, well you get a number of advantages, because you keep buying at low prices. The term movements like this are Bullish.

Sell ​​position (sell) will produce a profit (profit) if it turns out the price of the currency pair pair off the original price. Namely the movement graph coming down from the position of your selling price. For example: you put a sell position (sell) at price of EUR / USD = 1.2700 and then moved down to position the chart price of EUR / USD = 1.2650. then you get a gain of quantity used multiplied by the point of change, in the example is 50 points. The logic is you are selling goods at high prices (1.2700) and then the price of goods falls (1.2650), well you get a number of advantages because when prices are low (1.2650), the people buying your goods at the price you set (1.2700) . The term movements like this are Bearish.

Now we discuss about the loss. Can each trade there is always a possibility of losing money.
Buy position (buy) will result in loss (loss) if it turns out the price of the currency pair pair off the original price. Namely the movement graph coming down from the position of your purchase price. For example: you put up long positions (buy) at a price of EUR / USD = 1.2700 and then moved down to position the chart price of EUR / USD = 1.2650. then you get a loss of quantity used multiplied by the point of change, in the example is 50 points. The logic is that you buy goods at high prices (1.2700) and then the price of goods falls (1.2650), well you get the number of losses because when the price of goods was low (1.2650), you take action to buy your goods at high prices (1.2700). therefore you should not take action to buy when the market is down the price indicated by the graph who fell or bearish.

Sign up at Marketiva you will be given two types of funds, the Virtual Forex is not real money, only used for practice and tournament Marketiva Master and live forex ia real money is actually a $ 5 as your starting capital to make real trades, getting for free at first time openning account. If you can raise capital to $ 5 more, you can tranfer real forex funds into your account. Track can be transferred to your LR account first and then pass the money changer and the money changer is transferred to the local bank account.

If interested, you can register at Maketiva.
Trading software can downlosd through here, streamster download.

Greetings and best regard!