The Rules of Forex Trading Business
how to play forex? What is the meaning of Forex Trading Business rules?.. Many people think that it is simple, you buy the currency at a low price and then sell at a high price. To be successful and win, it is necessary to understand the rules and how to trade Forex, which are summarized in several points below.
Forex Trading Can Be Done Anywhere and Anytime
The opening time of the Forex market is divided into several major trading sessions, session Sydney (Australia), meeting in Tokyo (Asia), London(Europe), New York (USA). The session of this opening of the transaction in a row, so that when the Forex trading happens without stopping.
This fact is an important influence after the birth of Online Forex, because it means that a Forex trader can trade around the world 24 hours a day for 5 days per week. You can trade Forex, before we went through the office, before going to sleep at night or even during breaks at work.
Online Forex Requires Internet Access
Before discussing how to trade Forex, please consider any support infrastructure. Able to Forex, requires a Computer, Laptop or Smartphone and an internet connection. In addition, a Forex trading platform software is also required, which can be downloaded and used free of charge.
company that connects you as a trader to get access to the market. So, the first step in the process, as Forex trading is to register with a particular Broker, download the trading software.
If you want to try it-Try How to trading Forex and do not want real trading, you can also register a Forex Demo account first. A Forex Demo account can be obtained for free from any Broker and you can use it to trade virtual funds (you do not have to deposit any real funds into a Cent).
Currencies Are Traded In Pairs
Forex trading is carried out by pairs. In Forex trading we will sell or buy the currency and it will certainly be made between two different currencies. Therefore, the mention is always in pairs, where there will be a stronger currency in the future. For example, the U.S. Dollar with the British pound GBP/USD short. Or US Dollar with Japanese Yen in USD / JPY.
Basically, there are the eight most common currencies that are traded on the Forex market. The eighth currency, which is referred to as the main currencies, consisting of:
US Dollar (USD) is also referred to as “US dollars” or “U.S. dollars”.
Euro (EUR) is also referred to as” Single “or” currency of 18 countries ”
Japanese Yen (JPY)
British pound (GBP) nicknamed “Sterling” or ” Kabel”
Australian Dollar (AUD) called ” Australian”
New Zealand Dollar (NZD) nicknamed ” Kiwi”
Canadian Dollar (CAD) called ” Loonie”
Swiss franc (CHF), nicknamed ” Swissy”
Currencies are usually paired and traded with each other (Cross), and including the series of currency pairs that are traded the most in the world. It is also called a pair with exotic (exotic pair. For example, a US Dollar Singapore Dollar (USD/SGD). However, exotic currency trading rarely occurs on the Forex market, as volatility and trading costs will usually be very high, so the risk of losing more potential profits is higher.
Forex Traders Can Make Profits If The Prices Go Up Or Down
Basically, the Forex game is made by looking at the market conditions and predicting whether the value of the currency pair (price) goes up or down. The forecast was then executed by trading in an open Position (input or open Position). On the way of Forex trading only two types of positions are known, namely :
Buy (Buy/Long Position) :
the buy position is opened when the price increase of the currency pair is forecast.
A purchase position means that we want to benefit from the price increase of the currency pair. So if you want to buy, we need to make sure that the value of the base currency increases. After buying at a low price level, we close the position (close position) with a higher price.
Sell (Sell/Short Position) :
the Position for sale is opened when the price of the currency pair is forecast down. Sell positions that want to benefit from price declines. So if you want to sell, we need to make sure that the value of the base currency drops. We buy at a high price level and close this Position after the value of the base currency is lower than the opening value previously.