How To Trade Forex ? In the Forex market we buy or sell foreign currency in which the trading mechanism is really similar to other markets in the normally example has a stake. So rather simple, and if you already have experience in stocks should you will not see trouble in doing forex trading.
The purpose of trading forex is the desire that prices will change where the foreign currency you bought has increased the price, so you benefit from the difference between these values. In the forex market there are items whose name EURUSD, GBPUSD, GBPJPY and many more. Each item must have a price, there is also a price movement chart.
What we do is sell and purchase goods. Suppose the price of goods so, then we Buy, after that the price goes up, then we Close the results will be profitable. But if the price goes down, then we certainly Close only the result of a loss.
Buy / Sell (Buy / Sell) In forex trading terms which are commonly used Buy or Long / Buy if you think the base currency will rise. Meanwhile, Sell or Short / Sell if you think the base currency will go down. If you want to buy are actually buying the base currency, you want money mat is basically ride and then you would sell it back at a higher price. In terms of trade, this factor is called "going long" or taking a "long position" long is buying.
Meanwhile, if you want to sell the base currency and buy the currency quotas, you want the currency basically comes down quality, and then you would buy it back at a lower price. In terms of trade, this factor is called "going short" or taking a "short position". Short selling means.
Bid and Ask Spread
All Forex trading consists of two ways, namely bargain price (bid) and ask (ask). The bid is the price at which dealers willing to buy the base currency in exchange for currency quotas. This factor means the bid is the price at which you (as a merchant) will sell.
Bid is the price you want to sell. Ask is the price at which the dealer will sell the base currency in exchange for a quota. This factor means the ask is the price at which you will buy. Ask is the price you want to purchase.
Let's look at an example of quota prices are taken from the Forex trading platform:
GBP / USD. Price Bid (Sell) = 1.7445, with Ask (Buy) = 1.7449
In a quota GBP / USD, the bid price is 1.7447 and its ask price is 1.7449. notice how the broker makes it so easy for you to trade your money. If you want to sell GBP, you click "Sell" and you will sell pounds at a price of 1.7445. if you want to buy GBP, you can click "buy" and you will buy pounds at a price of 1.7449.
- Duration Type is the type or duration of special validity period for the pending order (because the market is not a pending order, the duration type does not apply).
- Good Till Cancelled is on the default setting for Duration of Type. In terms of pending orders do not have expiration and will only be canceled only when you manually cancel.
- Good Till Date is to set the expiration of the order has to remain active (not yet open). After setting to Good Till Date, please fill pending orders expire on a date to Duration
- Quantity Type is Type Quantity or Contract Size is Full Partial alias. For a while that can be used only Quantity Type: Full course.
- Exit Take Profit Targets is a price that you wants. (Maximum profit price point that you want to). Exit Target minimum distance is 8 points from Price Open. Remember Exit Target is the unit price (not the Point). Exit Target can be emptied and filled later.
Maybe that's all I can say about How To Trade Forex?, May be useful for all of you in particular who are just learning Forex.