Belajar Forex Trading with InstaForex

First topic message reminder :

Selamat sore wonosari'ers, untuk meramaikan forum Wonosari Gunungkidul, perkenankan saya akan sharing tentang belajar forex online trading. Dalam hal ini kita belajar dari awal mengenai forex trading sehingga bisa memahami, bisa melakukan transaksi di forex untuk mendapatkan keuntungan. Bagi yang tertarik belajar bersama saya saya persilahkan feedback.. Insya Allah step by step pelajaran kita sampaikan. Kali ini perkenalan dulu. Thanks :)

Leverage

Leverage is the ratio between the amount of the pledge and the borrowed funds allocated for it: 1:100, 1:200, 1:500. The leverage 1:100 means that for a deal execution you should have the trading account with the broker in the amount of 100 times less than the transaction sum.

The crediting coefficient is called the leverage. Its value may vary widely from 1:1 to 1:500, which means the possibility of buying/selling the currencies by the client in the amount exceeding the pledge sum of 500 times! For example, if the trader chooses the leverage 1:100 for the trading account and makes the deposit of 100 USD, then he/she has the opportunity to purchase the currency amounting to 100*100=10 000 USD. After the currencies purchasing, in case of favorable movements, the trader executes the sale, thereby makes profit on rates variance. Id est, he/she completes the transaction. At the moment of sealing the bargain the credit automatically closes, the pledge sum remains on the trader's account as well as the earned profit in full. It is this scheme that allows to gain significant profit, sometimes exceeding the amount of the pledge involved in a certain transaction, at slight changes in foreign exchange rates. The trader's risk is restricted only by the amount of the pledge, as the financial dealer (dealing center) does not provide the real amount of currencies for the whole sum of the opened transaction, but only guarantees the deposit of the loss or profit sum in full at the deal's closing. The closure of a transaction is the opposite operation: for buying some currencies amount it is selling the same volume of it and vice versa.

“The definition of the leverage is inseparably linked to the margin. Yet, at a closer look, there are differences between these two concepts. But there is one benefit for the stock jobber: the more the leverage is, the more the ratio of his/her own funds and possible speculative transactions is in favor of the latter. But how does it affect on the trading itself? Let us start with the history of the margin.

Initially, the margin trade principle was associated with transactions on commodity markets. In the 19th century the commodity exchanges were markets on which trade deals were carried out in cash. The brokers, who provided services for transactions' executions, transfers of money and accounts management were the dealers at these markets. The brokers maintained accounts using a special method of recording, so-called "circle" recording. This method was the most efficient to settle accounts between clients at frequents resales of goods. The circle method of calculations had been applied on futures’ markets up to the 1920’s, as long as it met the needs of these markets. Within the framework of this method the exchange members, making deals, were to fulfill their obligations set by these contracts as the parties to a treaty. They were the only ones to be responsible for the execution of deal obligations. Thanks to such payment system clients did not need to deposit their own funds to financially guarantee the fulfillment of any exchange-traded contract and could enjoy trading at lower prices. The previous method of settlements was more advantageous for that stage of exchange trade, when most transactions were purely commercial, i.e. purchase and sale of contracts implied a real demand for goods or the good itself. The members of exchange had to have substantial financial assets to guarantee the execution of obligations under any condition.

But at the beginning of the last century, as the speculative transactions were growing in numbers, more innovative risk management technologies appeared on the part of brokers, margin trading was a great option for those who wanted to make their fortune from a paltry sum of money (traders) and those who made good profit from this desire (brokers). So, if talking about Forex is topical, then it is time to move to the concept of leverage.”

Source : http://support.instaforex.com/en/index.php/Leverage

sundul meneh

Contract for Difference

Contract for Difference is the contract enabling one of the parties to conduct a speculative operation with a definite financial asset without physical delivery.

Source : http://support.instaforex.com/en/index.php/Contract_For_Difference

Quotation

The term “to quote” is most likely to have come from the French verb “coter” which means to mark/label with numbers. The quotation is the value of one currency unit, denominated in terms of another currency.

For example, the EUR/USD rate is at the level of 1.2750. It means that the Euro is worth 1.2750 dollars in this context. Herewith the currency, which is sold or bought, is the base one. The quoted currency is that one in which the base currency price is denominated in. So, in the EUR/USD pair the Euro is the base currency, the quoted or the counter currency is the dollar. The base currency is always the first in the pair. All operations are held just with the base currency. The Euro (EUR) always acts as the base currency. The British pound (GBP) is also the base currency in all pairs, except the the case with the Euro. The Japanese yen (JPY) may only be the qouted currency.

Quotations may be direct or reverse ones. The direct quotation shows the quantity of national currency per foreign unit: USD/JPY , USD/CHF, USD/CAD, etc. The reverse quotation reflects the amount of foreign currency per national unit: EUR/USD, GBP/USD, AUD/USD and others. There are two readings in the quotation. For example, EUR/USD is equal to 1.2750-1.2750. The selling price of the base currency is situated at the first place (Bid). Consequently, the second reading – Ask or Offer – is the buying price of the base currency for the quoted one. The difference between these rates is called a spread. The spread size depends on the currencies pairs in question, the deal's sum and the market behavior. Quotations reflect the market environment, shaped up during the trades, and the ratio of demand and supply.

Source : http://support.instaforex.com/en/index.php/Quotation

sundul

Cross Rate

Cross – rates are often used during the operations at the world market. What are they?

Cross – rate is the ratio between two currencies, resulted from their rate against the third currency quotation. As a rule at the world market operations cross – rates are used, where the US dollar acts as the third currency, as the American dollar is not only the major reserve currency, but also the currency of a transaction in most foreign exchange operations. For example, CHF/JPY, GBP/CHF, EUR/GBP, EUR/CHF, EUR/JPY. The calculations on these GBP/JPY, GBP/CHF, EUR/CHF, EUR/JPY cross – rates are defined by multiplication: GBP/JPY = GBP/USD x USD/JPY, GBP/CHF = GBP/USD x USD/CHF, EUR/CHF = EUR/USD x USD/CHF, EUR/JPY = EUR/USD x USD/JPY. For example, if the EUR/USD rate is 1.0100 and at the USD/JPY course of 123.50, then the EUR/JPY will correspond to 1.0100 x 123.50 = 124.73. The calculations on the EUR/GBP, CHF/JPY cross – rates are determined by division: EUR/GBP = EUR/USD / GBP/USD, CHF/JPY = USD/CHF / USD/JPY. For example, if the EUR/USD rate is 1,0100 and the GBP/USD rate is 1,5720, then the EUR/GBP course will correspond to 1,0100 / 1,5720 = 0,6425.

Source : http://support.instaforex.com/en/index.php/Cross-rate

Liquidity

Liquidity is the behavior of the market or a definite security, determined in that its selling or buying may be quickly executed by the investor and without significant losses in value. In banking sector this term decribes the bank opportunity to carry out the current payments and to be liable for its obligations by monetary funds.

Source : http://support.instaforex.com/en/index.php/Liquidity

sundul

Client's log file

Client's log file is the file created by the Client terminal which records all requests and orders sent by the Client to the Dealer with pinpoint accuracy.

Source : http://support.instaforex.com/en/index.php/Client%27s_log_file

forex maning

Server's log file

Server log file is the file created by the server which records all requests and orders the Dealer receives from the Client as well as the processing result with pinpoint accuracy.

Source : http://support.instaforex.com/en/index.php/Server%27s_log_file

forex.... forex...dijual murah..........

Margin

Margin is the sum of money which is to be free on the account in order to open a deal.

Source : http://support.instaforex.com/en/index.php/Margin

sundul

Non Market

Non-market quotation is the quote (price level) inside the price gap, some price ticks of similar value, which form the price gap, the quotation appearance due to the price noise and the price level which was developed without any macroeconomic statistics, having a great impact on the tool rate.

Source : http://support.instaforex.com/en/index.php/Non-market

sundul rex....

Normal market condition

Normal market conditions - the market state, satisfying each of the following requirements: absence of noticeable breaks in relation to the trading platform quotes; absence of rushing price dynamics; absence of essential price gaps.

Source : http://support.instaforex.com/en/index.php/Normal_market_conditions

sundul

melu nyundul,..

Trading Operation Volume

Trade operation volume is the number of lots multiplied by lot size.

Source : http://support.instaforex.com/en/index.php/Trading_operation_volume

masih ikut membaca dulu,..

@prasetyo : bagus gan silahkan sambil ngepost di sini. :)

Order

Order is a command for executing a certain transaction on the account. There are different types of orders which vary depending on the market mode or the instrument. Moreover, the set of available order types with different brokers also can be various and may include (especially at the future market) rather exotic commands. Do not set an order, of which the meaning is vague to you!

Source : http://support.instaforex.com/en/index.php/Order

sundul

Open Position

Open position is the result of the first part of fully completed transaction. At the position opening the Client accepts the following obligations: to execute the reversed deal of equal amount; to maintain the equity (level) no lower than 10% of the necessary margin.

Source : http://support.instaforex.com/en/index.php/Open_position

sundul

Market Opening

Market opening is the resumption of the trade after the weekend, holidays or after the rest interval between trading sessions.

Source : http://support.instaforex.com/en/index.php/Market_opening

sundul

Pending order

Pending order is set (placed) for the trading position opening and it is the request for currency pair purchase/sale at the terms of reaching the current (market) rate, the value, mentioned in the order.

There are four types of pending orders:

Buy Limit – to buy when the future Ask price is equal to the specified value. Herewith, the current price level is more than the value of the set order. Typically, the orders of this type are set in reliance on that the instrument price, having decreased to a certain level, will stop its decline and start to grow. It is impossible to set Buy Limit orders above the current Ask price, you have to use the orders of Buy Stop type for this.

Buy Stop – to buy when the future Ask price is equal to the specified value. Herewith, the current price level is less than the value of the set order. Typically, the orders of this type are set in reliance on that the instrument price will overcome some level and continue to grow. It is impossible to set Buy Stop orders below the current Ask price, you have to use the orders of Buy Limit type for this.

Sell Limit – to sell when the future Bid price is equal to the specified value. Herewith, the current price level is less than the value of the set order. Typically, the orders of this type are set in reliance on that the instrument price, having increased to a certain level, will stop its rising and start to decline. It is impossible to set Sell Limit orders below the current Bid price, you have to use the orders of Sell Stop type for this.

Sell Stop – to sell when the future Bid price is equal to the specified value. Herewith, the current price level is more than the value of the set order. Typically, the orders of this type are set in reliance on that the instrument price, having decreased to a certain level, will continue to decline. It is impossible to set Sell Stop orders above the current Bid price, you have to use the orders of Sell Limit type for this.

In order to set a pending order you have to click on the window "New order" and change the order type from "Immediate execution" to "Pending order”.

When you have chosen "Pending order" type, some fields will appear, in which you must specify the conditions of the order execution:

- the currency pair, volume and rate of opened position, to select the order type, stop loss and take profit, and, if it is necessary, to provide your comment to the order and to set the expiration date of it, after which a pending order will be automatically removed from the program.

After setting up the required characteristics, press the button "Set order" for agreement of the order placement and execution conditions. You can see the set order in the field "Terminal", tab "Trade". To change the conditions of pending order or to delete it, you have to click on it by the right mouse button and select the item "Modify or remove the order” in the appeared menu.

Source : http://support.instaforex.com/en/index.php/Pending_order

sundul

Pips

Pip or point is the smallest change in a price. For example, if the initial price was 1.1244, but became equal to 1.1245, it changed by 1 pip (point).

Source : http://support.instaforex.com/en/index.php/Pips

absen bro,..

sundul

Pipsing

Actually, such approaches to trading are rather complicated, but in spite of this, almost all newbies are trying to trade in such way.

Now about the method itself.

This approach is applied for making profit from fluctuations during the day. During the day some traders make more than 200 deals, the period of such positions’ life in this way is about several minutes. Of course, profit by such positions separately is small, but it can reach significant amount in total.

The idea of pipsers – earn on intraday movements. On the average during the day currencies move for about 50-60 points. However, this can be calculated if we take the price of day opening and the price of day closing. But if we take into account that currency rates do not constantly grow or fall within the day but make insignificant fluctuations, it will be in the end that currency moves for much more points for a day. Pipsers are trying to catch these fluctuations.

This approach is compared with roulette – the same playing methods, approximately the same chances, though probability of victory at Forex using this approach is twice higher.

Such system is doomed. There are several reasons for that.

1. Trying not to miss even the smallest rate movement, pipsers use levels of losses limitation (stop-loss) which are very close to the market.

Setting this level, probability of catching the loss during market noise is very high, even if you correctly determined trend direction but misjudged rather opposite strength of bulls and bears. It is very easy to make a mistake ascertaining the direction for the next hour. It is more difficult that to determine the aims of daily movement.

The simplest decision protecting against the order execution which fixes the loss, is absence of this order, but then you have a risk to lose more funds after fast movement against you, when price moved so far that it did not seem rollback to the previous levels in the next minutes or hours probable. Trading with large part of deposit not putting stop-losses can lead to margin call, i.e. losing the whole deposit.

2. Stress when you are trading with real money. As a rule, such strategy is firstly used at DEMO accounts, where you have virtual money, so there is no fear to lose them, and orders execution is made automatically, i.e. instantly.

So there are several factors, speed of requests’ execution and stress which become worse along with every pip of price changing against you. Pipsing implies constant stress, and affected by stress you can not make rational decisions.

Also we should mention the fact that brokers do not like clients who request huge number of operations. There are some limits for quantity of requests in a unit of time and too aggressive customers requesting orders every second can be asked to close an account.

Scalping is closer to achievement of some positive result. It is similar to pipsing, but its goal is more than several pips by one position.

Here are several rules of scalping tactics:

Simultaneous work with several currency pairs and effort of investigating their group movement. 90% of these systems are based on the group movement of currencies against the US Dollar. Though, there are systems based on the euro and the pound. Currency- engine and lingering currency are chosen. Let’s say, EUR/USD is chosen as alarm, AUD/USD as currency for trade (supposed, that it moves with delay compared to the euro). M1 chart or tick chart is chosen. The majority of manipulations are executed by orders.

Described above ideas are actively discussed at different forums. Usage of these approaches requires strong nerves and good reaction.

Source : http://support.instaforex.com/en/index.php/Pipsing

Fully completed transaction

Complete closed transaction consists of two opposite trading operations of the same volume (position opening or closing): purchases with further sale or sales followed by purchase.


Source : http://support.instaforex.com/en/index.php/Fully_completed_transaction

Quotations flow

The flow of quotations is prices for each instrument in the Trading Platform.

Source : http://support.instaforex.com/en/index.php/Quotations%27_flow

wah ra mudheng bahasane kang

Mari kita lanjutkan gan, pakai google translate biar mudheng...

Point

Point (pip) is the smallest change in the currency cost in the last quote figure (id est the last figure of a decimal fraction).

Source : http://support.instaforex.com/en/index.php/Point

sundul

Free Margin

Free Margin - the funds which are not used for the security of the opened positions. It is calculated by the formula: Free Margin = Equity – Margin.

Source : http://support.instaforex.com/en/index.php/Free_margin