Thursday, December 13, 2018
Rules and Ways to Trade Forex
For those of you who are still ordinary, of course, wondering about how to play forex? Many people imagine easy ways, buy currencies at low prices, then sell at high prices. In fact, to be able to do it well and achieve profits, an understanding of the rules and methods of forex trading is summarized in the following 6 points.
1. Forex Trading Can Be Done Anytime And Anywhere
The time of opening the forex market is divided into several main trading sessions, namely: Sydney (Australia) Session, Tokyo (Asia) Session, London (Europe) Session, New York (American) Session. These trading sessions open alternately, so as if forex trading takes place without stopping.
This fact has a big effect after the birth of the online forex trading method, because it means that forex traders throughout the world can trade 24 hours a day for 5 days a week. You can trade forex before battling to the office, before going to bed at night, or even during work breaks.
2. How to Online Forex Trading Requires Internet Access
Where can I get software for forex trading? Companies called forex brokers will connect you as a trader to gain access to the market. So, the first step in the procedure for how to trade forex is to register with a particular broker, then download the trading software provided.
If you want to experiment with how to play forex and don't want real trading, you can also register for a forex demo account first. Forex demo accounts can be obtained for free from any broker, and you can use them to trade with virtual funds (no need to deposit any real funds). While learning materials on how to trade forex can also be accessed freely and free of charge from the internet, including on the site aroundforex.com that you are referring to.
3. Currency traded in pairs
Not only men and women created in pairs. Forex trading is also done in pairs. In forex trading, we will sell or buy currencies, and that is certainly done between two different currencies. Therefore, the mention is always in pairs, where a stronger currency will be in front. For example US Dollar with British Pound abbreviated GBP / USD. Or American Dollars with Japanese Yen to USD / JPY.
Basically there are eight of the most commonly traded currencies in the forex market. These eight currencies are called major currencies consisting of:
US Dollar (USD) is also called "Greenback" or "Buck".
Euro (EUR) is also called "Single Currency" or "single currency 18 countries"
Japanese Yen (JPY)
The British Pound (GBP) is nicknamed "Sterling" or "Cable"
Australian Dollar (AUD) nicknamed "Aussie"
New Zealand Dollar (NZD) nicknamed "Kiwi"
Canadian Dollar (CAD) nicknamed "Loonie"
The Swiss Franc (CHF) is nicknamed "Swissy"
4. Forex Traders Can Profit When Prices Rise And Drop
Basically playing forex is done by looking at market conditions, then predicting whether the value of a currency pair (price) will later rise or fall. The prediction is then executed by opening a trading position (entry or open position). In the way forex trading is only known there are two types of positions, namely:
- eli (Buy / Long Position): Buy position is opened if the price of a predicted currency pair will rise.Buy position means we want to benefit from a price increase in a currency pair. So if you want to do a Buy, we have to make sure the value of the base currency will increase. After buying at a low price level, we will close the position (close position) at a higher price.
- Sell (Sell / Short Position): Sell position is opened if the price of a currency pair is predicted to DOWN. Sell position means that we want to benefit from a decrease in price. So, if you want to sell, we have to make sure that the base currency value will decrease. We buy at a high price level, then close that position after the value of the base currency is lower than the opening value.
Technology has made online forex trading in such a way as to make it easier for us as traders. For example, after opening a trading position, we don't need to glare at the computer only while waiting for the position to reach the profit target. We simply place the instruction on the platform, at what price the profit target is considered to be reached and the trading position must be closed. Later, even though we are relaxing watching movies in the cinema or busy working in the office, the trading position will be closed automatically and profits will be entered directly into the account.
Through similar methods, we can also prevent fatal losses due to Margin Calls. You do this by placing a Stop Loss to close the losing trading position, before reaching the margin availability limit. Therefore, even if we do not observe the market continuously, we can still prevent unwanted losses. Very practical, this is the ease of the way of forex trading today.
6. Open Trading Position Doesn't Have To Be At Current Price
If, based on various forex analysis that has been done, you predict the price in EUR / USD will increase in the long run, but the current price you think is less low or not yet potential to open a Buy position because it can still go down again. What to do? Should you monitor the computer constantly to check what the final price of EUR / USD is? Of course there's no need.
In the forex trading platform provided by brokers, there are various types of instructions available. In addition to instructions to close trading positions automatically, there are also various types of orders, such as: sell if the price is above the current price (Sell Limit), buy if the price is below the current price (Buy Limit), and so on. This can be witnessed and tried directly on the trading platform, even if you only have a forex demo account.