25 Feb 2012

Forex technical terms

Forex technical terms

Rate / quota or quota
Ratio is the price of a currency compared with the other.
A base currency
The base currency is the first coin found in any exchange of my husband. Determine its value against the counter currency.
(For example, if the ratio of the exchange pair EUR / USD 1.3525, the euro is the base currency and worth 1.3525 U.S. dollars).
Counter currency (also known as price or pilot points).

The counter currency is the second currency in any exchange of my husband. And determine the fundamental value of currencies. value.
(For example, in the following exchange pair EUR / USD, the counter currency is the U.S. dollar).
Price (also known as the purchase price))

Price (the left, giving the price) is the price at which traders will buy the base currency.
If you believe that the euro will go down if you can choose to buy - you can buy the euro to the dollar price shown indicative price given.
The asking price (also known as selling price or the asking price)

Demand the asking price (give price Right Steering) is the price at which dealers will sell the base currency. If you believe that the euro will rise if you can sell that to choose - you can sell the euro to U.S. dollar, the price displayed in the asking price.
The difference between the price of supply and demand.)
Points (also known as points)

One point, 0.0001 of a unit,
Day Trading

Day Trading is to open and close transactions in the same trading day.
The cost of trading
The cost of trading is the price when you trade against it. It is calculated in this way the cost of trading = sale price - purchase price
Avoid loss
Type of Trade to close the center, when the price of a specific sale to avoid the loss. You may choose to sell to avoid a loss to reduce the loss when the market influenced by the opposite of what you expect.
Margin
Is the amount of money placed in trust as collateral to cover possible future loss.
Leverage (× 400)
Lifting Almaliho loan you get from the seller or dealer, and you will then be played to a business transaction quick and cheap out of a small amount of capital.
Expressed as a percentage of total capital (located) and real capital (which is the amount of money you borrow).
(Eg, 1:400 leverage which allows the purchase or sale of U.S. $ 10,000, compared to 25 U.S. dollars).
Please Note
Trading currencies on margin increase, or raise the purchasing power.
If you have a U.S. $ 25 in cash in a margin account, which has a 400:1 leverage, you can buy the currency of 10,000 U.S. dollars because you have to put only 0.25% of the purchase price as collateral. This means that while you have a U.S. $ 25 in cash, and now you have a value of U.S. $ 10,000 of buying power. On the other hand, while the purchasing power of your profits more than it increases your loss.
We advise you to take advice very time to understand the risks. Make sure to read the margin agreement in order to understand how it works a margin account, and ask questions when things go is not clear to you.

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