Wednesday, October 19, 2011

Foreign exchange market

On the financial independence and additional earnings today, many reasoned. Therefore, the foreign exchange market Forex (born Forex) - an international interbank market exchange currency at free market prices - is what will help you learn to manage their finances wisely and to increase them. Forex trader - a person who engages in foreign exchange trading, seeks to make a profit on the difference of exchange rates and it does not matter, he buys it or sells (you can make, both on growth and on the incidence of currency). Advantages of Forex are obvious. You are free in their actions, work at any time. There is no pressure from his superiors. A trader can both work on the Forex market with other activities. You earn money based on communication and not chance, but only on their knowledge and skills. Engage in currency trading can be anyone, regardless of social status, age and education.
An example of a profit on Forex:
-The currency pair GBP / USD (Pound / U.S. Dollar)
-Margin (deposit) - $ 3.25 (ie for open positions on the pair GBP / USD, requires as little as $ 3.25)
-Spread (difference between the purchase and sale) - 2.6 points
-Leverage - 1:500
-Lot - 0.01
-The cost of the item - ie, $ 0.1 10 points = $ 1
Swap-sale (fee for transferring your position on the next day) - 2.6 points

This specification accounts such as Micro «Alpari" (the only forex-broker, who by a decision of the expert council of the national award "Financial Elite of Russia 2009" was honored with this award in the category "Grand Prix: Company of the Year in the market Forex») to open an account
So, we sell a couple of GBP / USD, ie sell the pound against the U.S. dollar price of 1.6400 (Friday 18/09) in the hope that the U.S. dollar will strengthen against the pound.
The next day, we close our open positions on 1.6200 (Monday 21/09) thereby obtain a profit of 200 points - $ 20.
But we have opened a position for the weekend, that is, We take a swap for 3 days (3 * 2.6 = 7.8).
We get: $ 20 - $ 0.78 (swap) - $ 0.26 (spread) = $ 18.96 (our net income).
Thus, the $ 3.25 dollar invested, we received a $ 18.96 dollar profits and our score was equal to $ 22.21.
But this is not always the case. The Forex market is a lucrative and at the same time, a very risky business. 


No comments:

Post a Comment