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 :)

Mochamad Nurahyani wrote:

iyo jek uenak tenan.......... sayange saiki wis ra musem............. saiki musem ungkrung jati kang. arep ra???

Wah mantap, ning aku gak seneng ungkrung jati. wkwkw... Mangga dilanjutkan....


Equity

Equity is the secure part of the client sub - account, considering the open positions, it is calculated by the following formula: Balance + Floating profit/loss + Swap. The funds on the client sub – account, decreased by the current loss for the open positions and increased by the current profit for the open positions.

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

sundul

Candlestick shadow

Distance between the candlestick body and the maximal day price in the form of vertical line which is called the candlestick's upper shadow (uwakage). The distance between the candlestick body and the minimal period price is also depicted as a line and called the candlestick's lower shadow (shitakage).

The Japanese candlestick body - the distance between the opening and closing prices, and the Japanese candlesticks bodies point to the price maximum or minimum in this trading period. If the shadows are short, then the price range of a certain security will be accumulated near the opening and closing prices in this period. If the shadows are long it means that trading was active in this timeframe and the prices moved away from the opening price and returned to the closing one afterwards.

If a candlestick has long upper shadow and short lower shadow it testifies to that in this period the "bears" were dominating and turned down the price, and then the bulls advanced it to the closing price. In both cases the candlestick color does not make sense.

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

hadir ndan,..

melu nyundul ae

Tick

Tick is the minimum quantity of a security price change at the market. At this moment, depending on the security type and cost, the price “size” can amount to 1/16, 1/32, 1/64 of the USD, etc., though the decimalization is being waiting for in the future, according to which the tick will come to 1/100 of the USD. At the circulation of the current information about prices movement the terms “upstick” (one tick upwards) and “downtick” (one tick downwards) are also used.

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

wiwid wrote:

kang venta pake indicator apa?..

Numpang shering ni kang...

Quote :

bisa di lihat http://masdiq.blogspot.com/2011/06/indikator.html

sundul

huradong hura nduwe rek barang

wiwid wrote:

kang venta pake indicator apa?..

Halo bos, indikator cukup dengan horisontal line dan candlestick chart. Salam profit.

Force major circumstances

Force major circumstances are the occurrences which could not be foreseen or prevented. As a rule, these are natural disasters; wars; terrorist attacks; government actions, actions of the executive and legislative organs of power; hackish attacks and other unlawful acts toward servers.

Source : http://support.instaforex.com/en/index.php/Force-major_circumstances

sundul

bingung malahan

mangkane sundul ae lur.....

Mari lanjutkan gan, silahkan gunakan bantuan google translate http://translate.google.co.id/

Fractal

Fractal is the term which means the geometric figure, offering the property of self-similarity, id est which is is made up from several parts, each of them is similar to the whole figure. In a more comprehensive sense, the fractal is interpreted as the ensemble of points in Euclidean space, having a fractionary metric dimension (from the viewpoint of Minkovskiy or Housedorf), or the metric dimension strictly more than the topological one.

It should be mentioned that the word “fractal” is not a mathematical term and has no strictly adopted mathematical definition.

It can be used when the viewed figure has some of features specified below:

1. Has a non-trivial structure on every scale. Therein is the difference from the well-formed figures (such as circular curve, ellipse, differentiable function diagram): if we consider a small fragment of the well-formed figure on a very large scale, it will look like a right line segment. For the fractal the scaling-up does not lead to figure's simplification. We will see the equally complicated picture on every scale.

2. It is self-similar or approximately self-similar.

3. It has a fractionary metric dimension or the metric dimension exceeding the topological one.

4. It can be built up with the help of the recursive procedure.


Many objects in nature have fractal properties, for example, coasts, clouds, limb of trees, blood circulatory system and human beings or animals alveoles system.

Fractals, especially on the flat, are popular due to the combination of beauty with a simplicity of the forming-up with the computer help.

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

KUDU BUKA TRANSLATE GAN...WAh wah repot...

sundul ae ngunu wae kok repot

@widjidume : Wah, kamus juga boleh gan, :)

Futures

Futures contract is the bargain or the contract for sale of a certain quantity of definite commodity at the indicated period on stipulated price. What is the futures contract?

Futures contract is the obligation to buy or sell the commodity at a given time in the future by the price, which is fixed today.

1. The contracts by themselves are replaceable. Id est, they are standardized as to commodities, time and delivery place.

2. The word “commodity” has a very broad definition and includes financial instruments and stock quotations.

3. The contracts are traded at the arranged and regulated futures exchange, so the buyers and sellers can easily find each other.

Note: the futures contract is the obligation (but not the right, as with options) and this obligation should be executed. In most cases, it is completed by means of the reverse transaction, by results of which the seller closes the position (sold, if it was bought; bought, if it was sold). But in a narrow sense the seller may keep the position up to the date of delivery when it is implemented by the stock exchange where these commodities are traded or by cash.

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

sundul

Hedging

Hedging is insurance against the risk of price changes by means of holding the opposite position at the parallel market. Hedging provides an opportunity to secure yourself from possible losses by the time of deal closing opened for a certain period of time; boosts the flexibility and efficiency of commercial transactions ; allows to cut the expenditures on financing the trade by real commodities; allows to reduce risks of the sides: the losses caused by commodity price movements are balanced out by the profit made with futures.

As a rule, there are no more losses after the Stop-Loss and in case the price reversed and took a favourable direction. These variants are well-known to everybody and there is no point to consider them. A trader who does not take advantage of Money Management overestimates his/her abilities. Yet the one who ignores risk-management always attacks, but cannot defend!

Hedging on Forex is indispensable for controlling a position and protecting it against risks with an aim to make profit from them. A simple example: you have opened a sell position, basing on the MACD indicator of the EURUSD tool. Later you have gained profit for three times, but now the price is moving upwards and your losses have not been reducing for over 24 hours. This situation requires hedging, but how to apply it properly? We need some mathematics and analysis to do this.

Another popular tool is position locking. It is not just ineffective: it is nothing but self-deceipt. Moreover, this lock has always a negative swap, because a positive swap for a pair is less than the negative one. Thus, this action does not differ much from the position reversal in reliance on the movement continuation and on its full return to the first position’s point.

Thus, the reason for any losses is an unpredicted currency’s movement (we are talking here about the currency market). In particular, the movement of a currency - not that of a currency pair. If you see at other charts that the reason for losses on the sell position of the EURUSD pair is consisting in the dollar reduction, then it is more likely to earn on this situation by the assets transfer to the other currency pair without the US dollar. To do this, it is necessary to determine the following:

1) The pair or pairs which are correlating well with the EURUSD pair.

2) This tool/these tools should be more volatile than the first one in order to the profit outgoes the losses.

3) To open the opposite position/positions on the US dollar. BUT!!! In equal shares.

It is important, because a EUR/USD lot is not equal to a GBP/USD one. Here is the price difference for a point (for example, for the USD/JPY pair) and for the volatility of one or another pair. These factors should be taken into account for the effective transfer of the position for the other pair. Otherwise, disagreements can be too serious. What is crucial to us is the initial balance, while the advance on the increment in profit against the losses is of secondary importance. The further goal is to achieve the “swing” effect after rally ends, making losses on the EURUSD pair and outrun the profit on the GBPUSD. After a sustainable movement there comes a period of consolidation and at a certain point the loss with the first currency pair reduces further. At that moment you have great chances to come out of the position with profit, and if the total swaps are positive, which is also important, that will give you the additional support. In fact, the present method can be used for transfer of the invested assets to the EURGDP pair. A simple example of two pairs was discussed here, however, there are more sophisticated ways of working with additional currency pairs for achieving better results at portfolio closing.

In order to determine the correlation ratio you can apply the algorithm based on the formula of the simple correlation, which is represented in the attachment along with the indicator for MT4. It also should be noted that hedging methods vary widely. So, even in the abovementioned example the pairs without major currencies could be used, but the profit/loss can differ much. The most important thing in hedging is the achievement of the needed balance, by means of assets diversification.

Types of hedging.

Classical hedging

Classical hedging is a hedging by means of holding the opposite positions at the market. The first type of hedging was used by the dealers of the farm products in Chicago (USA).

Full and partial hedging

Full hedging implies the insurance against risks for the whole sum of the deal. The present type of hedging excludes the very possibility of price risks-related losses. The partial hedging insures only a part of the real deal.

Anticipative hedging

Anticipative hedging supposes the purchase or sale long before the settlement at the spot market. In the period between making a deal on the derivatives market and on the spot market, the futures contract substitutes a real commodity delivery contract. Anticipative hedging can be represented by purchase or sale of the urgent deliverables and its further execution through the stock. This type of hedging is the most popular one on the stock market.

Selective hedging

Selective hedging is characterized by deals on the futures and spot market varying in the volume and transaction time.

Cross hedging

Cross hedging is defined by the fact that a deal with contract not for the underlying asset of the spot market is executed at the futures market, but for other financial instrument. For example, there is a deal with a share on the real market, but on the futures market - with futures for the stock index.

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

sundul

Obvious mistake

Obvious mistake – opening/closing client position or executing client order by a dealer at a price that greatly differs from price quoted per instrument in present flow quoting at the moment of processing. Or some other dealer activity or inactivity that deals with mistaken determination of market prices at the present moment.

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

sundul

Margin call

Margin call is the broker's requirement that the client has to enhance security (monetary funds or securities) for the deal of “uncovered sale” type or “purchase with leverage”, which was carried out at the expense of broker's credit and led to current losses. As a rule, in such situations it is required from the client to enhance security within one day and he/she is responsible for all potential losses of the broker.

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

PAMM

PAMM (Percentage Allocation Management Module) is a trading account, designed for trust management of investors' overall capital. PAMM account allows to provide a mutually beneficial cooperation of investors and the managing head. Its function is to reapportion profits and losses among its participants.

PAMM account is a suitable financial instrument both for investor (reduces risks while investing) and for the managing head (provides the effective trust management of trading accounts, regardless of their quantity).

Advantages of PAMM account for the managing head:

–indivisible (single) trading account for unlimited investors' number,

–opportunity to get profit either from own investments or from clients' ones,

–multi currencies of investments (investors can have deposits in different currencies),

–opportunity to set up PAMM account options for choice,

–effective managing head's trade may attract unlimited investors' number, so it means that the managing head's profit depends on investments amount directly.

Advantages of PAMM account for the investor:

–there should be 3000 USD of managing head's own capital at PAMM account, which is the guarantee of investors interest adherence,

–safety system, which allows the managing head to make transactions at the account, but does not allow to withdraw investors funds,

–opportunity to deposit and withdraw money out of managing at any time,

–opportunity of investments diversification by means of their placement at PAMM accounts of different managing heads,

– transparent trading history and current activity at PAMM account.

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

Stop Loss

Stop loss is the type of trading at which the opened position closes automatically at the determined price according to stop – order or safety order. You can set the safety order to minimize losses in case of unexpected market moves.

Stop - loss in its own way is an order too, but contrary to other orders it is the restriction of risks rather than the profit gaining.

One of capital management rules reads: “Restrict losses for every deal no more than 5% from the balance”. In other words, this means that stop – loss can go no further than dedicated number of points depending on the order volume of each deal. But this rule is not always suitable for each specific situation. According to long – term graphs, a rather low stop level is necessary in order to take noises into account and a rather high one to fulfill the rule – stop/profit 1:3. To set a large stop at 15 minutes means do not get enough profit, to set a little bit higher – to catch it by noise. For aggressive speculators such prospects are nonacceptable at all, as with the increase of order volume the stop size reduces. So where is to set it?

At first, it is necessary to estimate where it will be safe to put the stop in this situation. If you use channels, the stop usually is put out of channel borders. If you use support/resistance levels, then - out of levels. Thus, at the breaking out of channels or borders there is the probability that the trend will reverse and your money will be saved from imminent death. If there are neither channels nor borders around then the best variant for putting the stop – loss is above or below the previous candle for sale or purchase respectively. There are some normative indicators, simplifying the setting of exit points - Bollinger and Parabolic. Everything is simple and clear with Parabolic – stop is put to indicator points, Bollinger works according to channels rule.

After all “above” and “below”, the interval between expected entrance and stop – loss is measured. If probable losses are less than 5% and the profit is quite obtainable, then you may enter the market for sure.

Frequently, these details are not enough for estimation whether correctly or not the exit from the position is set. If probable losses are more than 5% and the profit grows sky-high, it will be better to wait for more favorable situation. If the stop level is too small, it will be better to give more freedom for it.

But here “losses adventures” have not finished. As the price reached the definite positive level from the entrance point, the stop – loss may start moving next to it. Following the rule “above/under the previous candle” it can successfully reach the price in that point where the impulse suggests the break out. For those purposes the floating stop – loss was specially designed, but with the restrictions on points it does not achieve desired effects.

Such ways of risks restrictions make the task of strategies testing and estimated return per month difficult but they are more changeable than strictly specified size of the stop – loss.

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

sundul

Stop out

Stop out is the level of client account, reaching of which the client's deals on the immediate quotation are removed compulsively. In InstaForex company stop out comes into action when the balance amounts to 10% of the funds. This restriction is designed for losses security from available means of the client.

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

sundul

Sundal Sundul wae

sundul meneh

Take Profit

Take profit is meant for position closing, if the financial instrument price started to move in the right direction. The order is always connected with specific open position or pending order.

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

sundul

Materi di glossary sudah habis kemarin dan sekarang masuk materi calculation.
Gunakan bantuan google translate. :)

Calculation of a pip value for currency pairs

The value of a point can be estimated using three methods and will depend on the deal volume; choice of calculation method will be reliant on the currency pair:

1. If USD is presented as the second currency in the currency pair (for example, EUR/USD, GBP/USD, etc.) then the value of a point in a deal of 1 lot will be equal to 1$, if a deal volume is 0.1 lot then it is 0.1$, etc.


2. If USD is presented as the first currency in the currency pair (for example, USD/CHF, USD/CAD, etc.) then the value of a pip in a deal with volume 1 lot will be 1/(current rate of this currency pair).

USD/CHF = 1/(USD/CHF) => 1/1.0418 = 0.9598 (deal with volume 1 lot)

The only exception is currency pair USD/JPY which has too low rate; we have to divide 100 by the current rate of USD/JPY.

USD/JPY = 100/(USD/JPY) => 100/105.06 = 0.9518 (1 lot deal)


3. If USD is not presented in a currency pair (for example, EUR/AUD, CAD/CHF, etc.).

The value of a pip in currency pair EUR/AUD will be equal to a pip value in a pair AUD/USD multiplied by the deal volume. In a pair EUR/AUD EUR is substituted by USD and we get the pair USD/AUD, which can be referred to the second method, and, consequently, equals to the ratio of 1 to the current rate of USD/AUD. But there is no currency pair USD/AUD. To turn non-existent pair USD/AUD into the existing pair AUD/USD it is necessary to divide 1 by the current rate of AUD/USD. And we will get:

EUR/AUD = USD/AUD = 1/(1/(USD/AUD)) = AUD/USD => 0.9527 (the deal of 1 lot).


Also you can use below the following formulas:

1. XXX/USD

v.p. =1 * (the deal volume)

2. USD/XXX

v.p. = 1/(USD/XXX) * (deal volume)

3. AAA/BBB

v. p. =(AAA/USD)/ (AAA/BBB) * deal volume

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

Pip value for CFD Shares

The value of a pip for shares is calculated on the basis of deal volume.

Depending on it, with a deal of 1 lot, the value of a point will be equal to 1$, with a deal of 10 lots 1 point = 10$, etc.


Also on this formula:

v. p. = volume * leverage * minimal price change

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

For Gold

The value of a pip for #GOLD is calculated on the basis of deal volume.

Depending on it, with a deal of 1 lot, the value of a point will be equal to 1$, with a deal of 10 lots 1 point = 10$, etc.

* The minimal tick for #GOLD is 10 pips

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

Calculation of the margin for currency pairs

For calculation of margin it is necessary to know the following characteristics:

balance and currency of account (1000 USD)
leverage (1:100)
currency pair EUR/USD
deal’s volume (1 lot 10000 EUR)
For assessment of deal’s volume it is necessary to know what amount of currency, which your account in, you need for its execution. => 1 lot = 10000 EUR =>

Convert 10000 EUR in USD = 10000 * current rate of EUR/USD = 10000 * 1.5442 = 15442 USD

Margin is a ratio of deal’s volume to the leverage. =>

Margin = 15442/100 = 154.42 USD

Free margin after a deal opening => 1000 – 154.42 = 845.58 USD

For a new deal:

leverage 1:100
currency pair GBP/USD
deal’s volume 2 lots (20000 GBP)

Deal’s volume = 20000 * 1.9627 = 39254 USD

Margin = 39254/100 = 392.54 USD

Free margin after the deal’s opening => 1000 – 154.42 – 392.54 = 453.04 USD

Margin = 546.96 USD

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

For CFD Contracts

For calculation of margin for shares it is necessary to know the deal’s volume and the value of share.

For instance: volume of the deal is 5 lots, the value of share is 47 USD.

You have to keep in mind that 1 lot = 100 shares. Also the leverage for shares is standard 1:10.

Formula:

Multiply the value of a share by the number of shares (deal’s volume) and divide by 10 (leverage 1:10)

47 USD * 500 shares (5 lots)/10 = 2350 USD

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

For Gold

To calculate the margin for gold it is necessary to know the deal’s volume, gold value and leverage.

For example: deal’s volume is 4 lots, gold value is 904 USD, leverage 1:100 (so as the leverage for gold is standard 1:100).

You should take into account that 1 lot = 100 ounce.

Formula:

Multiply gold value by the number of ounces ( the deal’s volume) and divide by 100 (leverage 1:100).

904 USD * 400 ounces (4 lots)/100 = 1808 USD

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