Rabu, 28 Maret 2012

Frequently Asked Questions by a Newbie Investor and Trader :

1. Who has the institution and where it is?

          It is not owned by a particular person, such as Forex is the interbank market, which meant that the transaction was carried out only between two participants - seller and buyer. Similarly, the stock market, future index and commodity market itself has in many developed countries. So long as the banking system and stock exchange remain, forex and other financial fund business will still go on. This is not linked to any country or government organizations

2. How can I start trading Forex or other financial fund business?
You must register a trading account with a Forex broker as well as banking and stock exchange in Online Trading. Then you can start using the program financial fund their clients' businesses to buy and sell currencies, stocks, indexes, commodities and bonds. It will take less than 5 minutes of your time, with a range of leverage and the hose as feenya point.

3. Operating hours of the Forex market works and other financial fund ?

 Forex and Commodity Market is open from 22:00 GMT Sunday starting from the Asian market (opening of Australia trading session) till 22:00 GMT Friday (closing of USA trading session). Being for stock and indices will apply to any State in which any national stock exchange take place in different working hours with the stock of other countries.
4. What is a Long Position and Short Position ?

First, you must specify whether you want to buy or sell.
* If you want to buy or long positions such as Forex, which actually means buy the base currency and sell the quote currency, you want the base currency increases in value and then you will sell it back at a higher price. In speaking traders, this is called "going long" or taking a "long position". Just remember: buy = length.
 * If you want to sell (which actually means sell the base currency and buy the quote currency), you want the base currency to fall in value and then you'll buy it back at a lower price. It's called "going short" or taking short positions, sell = short.

5. How to Bid and Ask Spread Position

All Forex quotes and other financial fund has a two-way price, the bid and ask prices. The bid is always lower than the asking price.
  Bid is the price at which dealers are willing to buy the base currency in exchange for the quote currency. This means the bid is the price at which you (the trader) will sell.
   Ask is the price at which dealers will sell the base currency in exchange for the quote currency. This means the ask is the price at which you will buy.
Difference between supply and demand prices is known as the spread.

6. What is a Pip and Pip Value?

The smallest increase in the price currency can make. Also known as points. For example, one pip = 0.0001 for EUR / USD, or 0.01 for USD / JPY.
Pip value can be either fixed or variable depending on the currency pair. eg The pip value for EUR / USD is always $ 10 for a standard lot, $ 1 for mini lots and $ 0.10 for micro lots.

7. What is a Lot ?
Standard size units of the transaction. Typically, one standard lot is equal to 100,000 base currency units, 10,000 units if the mini, or 1,000 units if the micro. Some dealers offer the ability to trade in any size unit, down to as little as 1 unit.

8. What is the meaning of the Standard Account?

 Trading with standard lot size, usually 100,000 units of base currency. eg The pip value is $ 10 for EUR / USD.

9. What is a Mini Account and Micro Account?

Trading with mini lot sizes, generally 10,000 units of base currency. eg The pip value is $ 1 for EUR / USD. Trading with micro lot sizes, generally 1,000 units of base currency. eg The pip value is $ 0.10 for EUR / USD.

10. What is a Margin?

Margin is money you must have an account at your broker to secure your open position. Different brokers require different amount of margin money to keep your position open. Security deposit is required to open or maintain a position. Margin can be either "free" or "used". The margin used is that amount which is being used to maintain an open position, whereas free margin is the amount available to open new positions.

With a $ 1,000 margin balance in your account and 1% margin requirement to open a position, you can buy or sell a position worth up to a notional $ 100,000. This allows the trader to use his account up to 100 times or a leverage ratio of 100:1. If the trader's account falls below the minimum amount required to maintain an open position, he will receive a "margin call" requiring him to add more money into his account is open or closed position. Most brokers will automatically close a trade when the margin balance falls below the amount required to remain open. Amount needed to maintain an open position depending on the broker and could be 50% of the initial margin required to open trade and investment.

11. What is the meaning of Leverage?
Leverage is the ability to prepare for your account to a position greater than your total account margin. For example, if a trader has $ 1,000 of margin in his account and he opens a $ 100,000 position, he took advantage of his account by 100 times, or 100:1. If he opened his $ 200,000 position with $ 1,000 of margin in his account, then the leverage is 200 times, or 200:1. Increase the leverage will magnify both gains and losses.

To calculate the leverage used, divide the total value of your open positions with a total margin balance in your account. For example, if you have $ 10,000 of margin in your account and you open one standard lot of USD / JPY (100,000 units of base currency) for $ 100,000, your leverage ratio is 10:1 ($ 100,000 / $ 10,000). If you open one standard lot of EUR / USD for $ 150,000 (100,000 x EURUSD 1.5000) your leverage ratio is 15:1 ($ 150,000 / $ 10,000) ..

12. What is the meaning of support (Support) and Resistance (Resistance) ?

Support (Support) is a technical price level where buyers than sellers, so it causes the price bounce up on the based of the price floor for a while. Resistance (Resistance) is a technical price level where sellers than buyers, causing prices to fall in the price ceiling bounce while.
If the price after effort 2 -4 times to break more down price on below of the Support Line and some indicators to recommended that the price is move up, so this time is moment to buy on strength or buy on weakness. Also for Resistance Line if the movement price is not able to break more up on the upper Resistance Line and some indicators tell you that its time to sell on strength or sell on weakness. So watch closely and more learn on indicators and fundamental data that give you more confidence  to take a position with careful safely investing and trading.

13. Forex trading strategies and investment and financial fund is best?

but of course there are some methods that strategy is good enough, adequate, prospective, and can be trusted. For that, you should always be diligent in reading and looking for a book or via the Internet in various ways and methods are good enough for you to reap optimal benefits without having to try to look for a big profit by greed, but ultimately would be detrimental to your own. You must continue to develop its own strategy for each market situation allows, if you want to make a profit. Specific strategies can only be good for a specified period and for a particular currency pair for the Forex market and thus also for other financial fund.

14. How much money do I need to start trading Forex and other financial fund?

With forex you can start trading Forex with as little as $ 1. Typically, the minimum amount varies from $ 100 up to $ 10,000 ($ 100,000 and more for Interbank trading), as well as for the Commodity and Index Future in accordance with its own price level.

15. How can I send my margin money?
If you have a Credit Card or International Debit Card as provided by international banks and the stock in any state institution or other provider. Or some transfer device like Liberty Reserve,  Easy Pay, and the others which be trustee to transfer your money safely.

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