There are many forex term that we have to understand if we want to have a currency trading business. Let us continue to understand the words that globally used in forex trading.
Floating Loss / Profit and Realized. When you have a buy position in 100 and then the price moves down to 95, so if you calculated the estimated loss is 100-95 = -5. But that value can still be changed tomorrow, either increased or decreased. Well, the value of -5 at the moment is called Floating Loss (Loss), if the value is positive, such as pricing now to 105 the difference is 105-95 = +10 called Floating Profit. If you decide to sell / close your positions when the price is 100, then the value of +100 to be Realized Profit (no longer a floating but has become Real)
Pip. It is the value of 1 point rise or fall in price movements. For a mini account in forex trading, a value of 1 point is $ 1, for the standard account is $ 10.
Technical Analysis. It is an analysis in forex trading to measure the movement of prices through price charts. The things we need to know from this technical analysis are the trend, saturation, support, resistant, and Pivot Point.
Fundamental Analysis. It is an analysis in forex trading to predict price movements based on fundamental news. Fundamental news here in the form of economic news, politic, and security that affect price movement.
Resistance. It is the price limit above which is a psychological price, for example the current (year 2011) dollar exchange rate of JPY is 90 and has the upper price limit (resistance) 100 Yen, which could mean that until the price of dollar exchange rate through the price of 100 Yen then there will likely continue to rise away from the 100 but over 100 have not touched the price likely will move up and down just under 100.
Support. is the limit below which the price of a pair of resistance (above), for example the current (year 2011) dollar exchange rate has a lower price limit (support) 85 amount, which could mean that until the price of dollar exchange rate fell through the price of 85 dollars then there is likely keep away from fall 85 but for 85 probably has not touched the price will only move up and down on top of 85 (support) and below 100 (resistance).
Make Forex Trading Easier And Profitable
Forex signals are forecasts of forex trading points from expert traders on the market, they predict the changes of a pair rate, they can see if it will go up or down and how much it will change.For an example.Forex automony is a forex signal provider that will try to give you 80% accurate signals, with this signals you can calculate the stop lose and take profit parameters.They provide three types of forex signals1. Intraday signals, short signals that will happen in short period of time (hourly), those signals are the most profitable because you can make multiple small profits that will sum up at the end of the day with good profit.2. Daily signals, that will give you the changes of each currency pairs at the end of each trading day. With knowing this parameters you can learn the direction of the charts, although the chart will go up and down, but eventually in 80% accuracy it will behave as they expected. Knowing this could help you make better decisions on the intraday trading deals.3. Weekly signals are for long term deals, here are the most profitable and risky at the same time deals. Knowing the long term changes could help you make huge profits from one deal.There are no 100% accurate signals, because those signals are predictions of experts traders and, those experts make these prediction by taking all factors and elements in account, but we all know the sometimes small changes in the market, an announcement, or even politic incident can change everything in the forex market. But in general those signals are much better than nothing, and it’s like getting direct help and opinion from trading experts.I can recommend only two forex signals providers but I will not review them, I found them as the most accurate in the market.
What is the Difference Between Forex and Stock?
The Forex market has a lot of advantages compare to stock market:
Powered by Yahoo! Answers