Monday, November 19, 2012

FOREX TRADING STRATEGIES

Forex Trading Strategies


Are traded in the foreign exchange market leverage manner LEVRAGE MARGIN meaning that an investor can trade sale or purchase in a contract or a deal worth $ 70,000 U.S. dollars in the amount of insurance of $ 1000 U.S. dollars, allowing the investor to access and trading in this market is relatively small amounts.
  In each currency has a specific contract size such as the euro 62,500 euro per contract value insurance is $ 1,000 and we'll explain in a table later contract size for each currency.

Mechanism trading in the currency market

Currency direct Euro and sterling
Trading strategy is to trade in currencies direct purchase at the lowest point and sell at the high point.
BUY LOW ==> SELL HIGH
forex trading strategies

Example
 Euro at the point at 1.0050 and expected rise in the market buy at this point if it has reached, for example, to 1.0150 sell.
 Euro at the point at 1.0100 and unexpected decline in the market to sell at this point and if it has reached, for example, to 1.0020 buy.
The sense that we are here we can enter the market either the process of buying and Nagaflha sale process or the opposite that we are entering the market the sale and Nagaflha process the process of buying and advantages of this market that a two-way street.

How to calculate profit and loss in direct currency
Profit or Loss =] (sale price - purchase price) contract size - Commission [number of contracts
Profit or loss = [(sell - buy) CS - commission] No. Lots

Example
   John Bought 4 decades in the Sterling price of 1.5520 and sold at 1.5580 Calculate the profit rate?
Answer as follows
[(1.5580-1.5520) 62,500 - 45] 4 = $ 1,320

Currency indirect Japanese yen and the Swiss franc
Trading strategy is to trade in currencies indirect buy at the high point and selling at the low point.
BUY HIIGH ==> SELL LOW

Example
 Japanese yen at the point at 120.80 and the market is expected to fall Venstrae at this point and if it has reached, for example, to point 120.00 sell.
 Japanese yen at the point at 120.50 and expected to rise market Venabie at this point and if it has reached, for example, to 121.20 buy point.

The sense that we in the currency indirect when we want to buy the currency, we expect to strengthen the currency and strength here means falling digitally against the dollar meaning it all PECHS yen digits each forex trading strength and vice versa any that if we sell the currency, we expect a weak currency that is, they increase digitally against the dollar .

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