Intro FOREX
Forex Market:
Forex (Foreign Exchange) is the name given to the "direct access" trading of
foreign currencies. With an average daily volume of $1.4 trillion, forex is 46
times larger than all the futures markets combined and, for that reason, is the
world's most liquid market. In the past, forex trading was limited largely to
enormous money center banks and other institutional traders. But in just the
past few years, technological innovations and the development of online trading
platforms allow small traders to take advantage of the significant benefits of
trading foreign currencies with forex.
In contrast to the world's stock markets, foreign exchange is traded without the
constraints of a central physical exchange. Transactions are instead conducted
via telephone or online. With this transaction structure as its foundation, the
Foreign Exchange Market has become by far the largest marketplace in the world.
Currency pairs is a combination of two currencies by means of which display a
rate of one of currencies in relation to another. The currency, costing the
first in a combination, refers to the basic. The currency, costing in a
combination, it is accepted the second names quoted. The exchange rate speaks
about that, how many the quoted currency give for the basic currency.
Thus, rate EUR/USD 1.2879 means, that for 1 euro (EUR) give 1.2879 US dollars (USD).
Rate USD/JPY means, that for 1 US dollar (USD) give 104.96 Japanese yens (JPY).
By the way, quotations in international currency market FOREX are usually
expressed by five--place number. Examples of currency pairs: * EUR/USD - euro /
the American dollar;
* USD/JPY - the American dollar / the Japanese yen;
* GBP/USD - the British pound / the American dollar;
* USD/CHF - the American dollar / the Swiss franc;
* USD/CAD - the American dollar / canadian dollar;
* AUD/USD - the Australian dollar / the American dollar.The information on
columns: * Currency - the name of currency pair
* Last - the size of last quotation
* Bid - the quotation on sale
* Offer - the quotation on purchase
* Change - a deviation of the quotation from daily average
* High - the maximal quotation for day
* Low - the minimal quotation for day
* Time - time of last change of quotation
* Open - the quotation at opening period
* Close - the quotation at closing the periodThe difference of quotations is
usually measured in items - 1 item corresponds to unit of the younger category
of number of the quotation.Having cluck on number in column Bid you can place an
order on sale, and in column Offer on purchase of corresponding currency. The
difference between quotations in these columns makes commission Marketiva
(spread). That is for example, having bought and at once having sold (not
waiting changes of the quotation), you will lose currency from 3 up to 5 items
at work with primary currency pairs (that is, that are correlated with US dollar
- USD). For secondary currency pairs this difference can make up to 12 (and can
and more) items.Having cluck on button Subscriptions you can choose (to add,
remove) those currency pairs, which quotations you wish to receive. Button
Columns allows to choose columns which you wish to see in this window.Except for
that in this window there is bookmark Latest News having cluck on which you can
see the latest news and as to subscribe (unsubscribe) on (from) corresponding
groups of news, which can as-or to affect a condition of the currency market so
to help you with the analysis of tendencies of its change.
The first field I think clearly without comments. Buy/Sell - a choice of type of
operation, you wish to buy quoted currency (euro) or to sell. Now very essential
fields Price and Price Type. You have an opportunity to choose one of three
types of the price:
Market (it is chosen by default - thus change of a field of the price is not
accessible), will make operation at the price of which it is known at the moment
of receipt of the application, operation is carried out immediately after
receipt.
Limit (operation with restriction) - allows to choose a ceiling price on which
you are ready to make purchase or minimal on which are ready to make sale.
Operation is carried out after crossing border current by set you.
Stop (the stop of movement) - allows to wait changes of a direction of movement
of the price. For example you wish to buy as it is possible more cheaply when
the price will start to grow, but do not know where movement of the price will
go. You can expose stop-warrant on purchase above the current price (if it was
the Limit-warrant purchase would occur immediately). Now you wait where movement
of the price and if the price continues to fall will go, correct the warrant on
lower threshold, well and if the price will start to grow there will be a
purchase. I.e. you have waited changes of a direction of movement of the
price.Duration - validity of the application.Duration Type - a way of
cancellation of the application (by default Good till cancelled - while you do
not cancel the application). Good Till Date - remains it is valid before the
date chosen by you. Immediate or cancel - the warrant will be immediately
executed (if satisfies to other conditions) or is excellent.Quantity - quantity
of currency. It is underlined in cents.Quantity Type - type of quantity, only
completely (Full) or it is possible partially (Partial). Actually there is no
difference what type of the sum you expose opening the warrant: Full or Partial.
This option is given for other kind of actives and is not used at trade in the
market Forex. It is possible to ignore it at trade.Exit Stop-Loss - the price at
which you wish to close a position after performance of the warrant if the
direction of movement of the price mismatches your forecast, i.e. with negative
result of commercial transaction.Exit Target - the target price of end of the
transaction. The price on which you plan to receive profit and automatically to
close the transaction.Desk - you can choose Live Trading - real or Virtual
Trading - the virtual account (for trainings).Text - simply comment for itself.
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