How to Trade Forex

How to profit with forex trading? There are two ways: "buy" (buy) and "sell" (sell). If you want to take profit when the price goes up, then "buy", whereas if you want to take profit when the price drops then "sell". Suppose we have a GBP / USD field and the crop we choose is "buy", automatically it means we "buy" GBP and "sell" USD. While if the harvest tool "sell", it means we "sell" GBP and "buy" USD.

So, trading in the forex market is simple, similar to other markets. Especially if you have stock trading experience, then forex trading will be easy.



The difference is in goods traded, ie currency. One currency is exchanged with other currencies in the hope that the price will change in the direction that suits our expectations. Well, in order to be able to sell properly, we need to know first some of the following.

Reading Quotation (Quote Forex)
Already learned in the previous section that forex is always in pairs. Basically in Forex transactions, when we buy (buy) one currency, we automatically sell (sell) the currency that became its counterpart. Read more

Long / Short Position
For trading, we first have to decide whether to order 'buy' or 'sell'. Read more

Bid / Ask price
All quoted prices in forex are written in two prices: bid and ask. The bid price is usually lower than the ask price. Read more

Pip and Pipette, Profit Forex Seeds
Pip is a unit of measurement that shows the change in value between two currencies. For example, USD / JPY pair moves from 91.23 to 91.24. Well, this 0.01 increment is called ONE PIP. Read more

Leverage And Margin
When going to register at any forex broker, we will meet with leverage and margin options. Furthermore, we will often find this term everywhere, because the role is quite important for the sustainability of our trading account. Thanks to this, anyone can trade forex, even if the capital is minimal. Well, what is leverage and margin in forex?

Understanding Leverage
Leverage can literally be interpreted as 'leverage'. In term, it is more or less can be interpreted as 'leverage' offered by the broker so that we can trade big though our capital is small. This is because in order to really be able to reap the profits, then in truth will need big capital. Read more

Understanding Margin
Read again the example of leverage, "You just give a small amount of guarantee to get the capital of 10.000 Euro.For example, with 1: 100 leverage, we just give 100 Euro to get capital 10.000 Euro." Read more

Margin Like Honey And Poison
Can turn 100 Euro to 10.000 Euro, really magic yes, leverage and this margin? Eits, do not get me wrong. Behind the magic, this trading margin is true like honey and poison. He can be a honey by giving us the opportunity to earn huge profits and become toxic, because with the margin of a trader can also suffer a huge loss. How come? Read more

That's the basic knowledge that all traders must know. But it's not that simple. Sell ​​and buy any kind of different kinds. This will be discussed again in the next section.