Project Forex & Brokerage

No Deposit Bonus - Welcome Bonus Robo Forex

2011-10-31T12:10:00.000-07:00

Link: $15 no-deposit bonus from RoboForex
Dates: all year 2011
Bonus: free $15 - no deposit required
How to get: Apply for a welcome account with RoboForex
The RoboForex is glad to present «Welcome bonus», a new no deposit bonus service which can be of a great help to beginner traders, and a good opportunity to try trading using real forex accounts at RoboForex!
View instructions how to get «Welcome bonus».

We’d like to pay your attention to the fact that our Technical Support Service gives no answers to the questions on No Deposit Bonus, as the system operates automatically. If you have any question, please, visit «Welcome bonus» FAQ.
Conditions of no deposit bonus «Welcome bonus 2.0» service are the following
«Welcome bonus 2.0» is $15 (1500 cents transferred to your account). It’s available for verified clients using Fix-Cent & Pro-Cent usd cent accounts only.
Please note that «Welcome bonus 2.0» service is available for new clients only!
There are some trading restrictions for accounts with «Welcome bonus»:

- an order is 0.1 lot;
- maximum number of open orders is 10;
- only metals and currency pairs are available for trading.

In case of cancel bonus client must pay commission $15 and restrictions are not removed! These restrictions will be removed as soon as the equity on the bonus account exceeds $100 (10000 cents) due to profit earned or client’s depositing the account with his/her own funds. After the equity exceeds $100, the account will become a real one and all restrictions will be removed in the following order:

- automatically within an hour, if there are no open orders;
- automatically within a day, if there are open orders.
A client can withdraw bonus from the account, if the total amount of the lots on his/her account is:

- 500 microlots (5 standard lots) for Fix-Cent accounts;
- 750 microlots (7.5 standard lots) for Pro-Cent accounts.
One is allowed to withdraw profit from the bonus accounts taking into consideration onetime commission of $15 during the first withdrawal. HOWEVER, after the bonus account becomes a real one (art. 2), no onetime commission will be charged.
You must use the same account details for payments each time you withdraw profit from your bonus account. In case these very account details for payments are used to withdraw profit from other bonus accounts, the company reserves the right to write the bonus off the accounts, as well as the profit gained when trading using these bonus accounts.
Partners DO NOT receive commission for transactions on bonus accounts. HOWEVER, after the bonus account becomes a real one (art. 2), partners will receive commission for orders according to the normal procedure.

How to get no deposit «Welcome bonus»

«Welcome bonus» is credited only once for each client when (s)he opens a new trading account.
In order to avoid any type of fraud involving no deposit bonus, the system that checks and transfers bonuses to our clients’ accounts is operating automatically.
RoboForex reserves the right to cancel «Welcome bonus» without any explanation.

Conditions of operating no deposit bonus accounts:

Bonus can be withdrawn if the requirements of the bonus program are fulfilled.
Up to the moment the requirements of the bonus program are fulfilled, only profit can be withdrawn, taking into consideration onetime commission during the first withdrawal.

Example: You got 1500 cents as a bonus. If your profit after trading is 2500 cents, then, according to our conditions, you can withdraw 1000 cents, i.e. minus onetime commission of 1500 cents during the first withdrawal (next time you withdraw your profit no commission will be charged).
A client can deposit bonus account with his/her own funds (in order to meet the requirements more quickly). In case of negative balance on the account, our policy is that a client loses his/her own funds in the first place.

Example: You got 1500 cents as a bonus and deposited your account with your own 1000 cents. If your profit after trading is -500 cents, then, according to our conditions, you can withdraw 500 cents, i.e. your own funds minus profit.

Only closed deals on the following currency pairs are taken into account for fulfillment of the requirements on transactions:

List of currency pairs for fulfillment of the requirements on transactions:
AUDCAD AUDCHF AUDJPY AUDNZD AUDUSD CADCHF CADJPY CHFJPY EURAUD EURCAD	EURCHF EURDKK EURGBP EURJPY EURNOK EURNZD EURPLN EURSEK EURUSD GBPAUD	GBPCAD GBPCHF GBPJPY GBPNZD GBPUSD NZDCAD NZDCHF NZDJPY NZDUSD USDCAD	USDCHF USDDKK USDHKD USDJPY USDMXN USDNOK USDPLN USDSEK USDSGD USDZAR

RoboForex reserves the right to cancel bonuses from the accounts without giving any reasons and/or advance notice.

How «Welcome bonus» is deposited to your account

When registering a new account you need to choose USD currency, Pro-Cent or Fix-Cent account, select “Get Welcome Bonus 2.0?”, and agree to terms and conditions of the bonus program by selecting “I agree to terms and conditions of the Bonus Program”.

Please, note, the automatic system, which checks the recurrent bonus transfer and transfers bonuses to our clients’ accounts, may deny Your attempt to register a new bonus account. In this case, You won’t be able to receive bonus from RoboForex.
After registering a new account you need to pass the verification in your Live Account.
After the account is registered, you need to download MetaTrader 4 the trading terminal of the RoboForex and login entering the information sent to your email.
After a successful authorization in the RoboForex MetaTrader4 client terminal, you need to customize it. Make sure that Your terminal allows You to use Expert Advisors (EA) as shown on the figure below:

MetaTrader4 terminal menu: "Tools -> Options -> Expert Advisors"
After installation options for Expert Advisers (EA), you need to double-click on «verify_client» to start the script (“Navigator -> Scripts” section of the trading terminal).
After the «verify_client» script is started, you will be notified that «Welcome bonus» has been successfully credited to your account.

Please, note, if the «verify_client» script doesn’t start, it means that You don’t have access rights to the folder where the RoboForex MetaTrader4 client terminal has been installed to, "C:Program FilesMetaTrader4 - RoboForex". You need to the gain access rights or run Your personal computer as an Administrator to start the «verify_client» script.

Project Forex & Brokerage 5BKP24RS6NCR

2011-09-10T14:35:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Promote your site for free

www.e-referrer.com

www.e-referrer.com

www.e-referrer.com

Straddle Stop

2011-08-12T15:21:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Straddle Stop

Straddle a stop is put to BUY and SELL Stop order Stop orders, about 30-60 seconds before the news was released with a distance of 10-15 pips from current price.
The goal is to catch up or down spikes that occur when news was released.
Straddle the stop in use if it is felt that the News Service that are used less rapid news release number so it is not possible for traders to take positions before the initial spike (initial spike) occurs.
Indeed there is a loss when we use this style, where traders can not obtain maximum benefit from the price spikes that occur.

However, with continuous practice, this style can provide consistent profits.
If you do not want to come out of capital for News Service subscription, you can use the following as a news service site2:

ForexFactory.com - access via a browser, perform continuous refreshes detik2 news released. Delay> 30 seconds of the initial spike.
http://news.efxnow.com/en/commentary/index.html - auto refresh browser. Delay> 30 seconds of the initial spike.
NewsStrike.com - Audio service, exclusively for U.S. News only and must install software to listen to the news - Delay> 3 seconds of the initial spike.

At least 100 pips per month or 5 pips per day is not difficult to obtain. You can just continue to increase the volume of transactions lot bit by bit to get a bigger profit.

Keep in mind that usually each broker has a different policy for STOP orders. STOP orders normally require that brokers be 10 pips away from current price (some are below it but rarely). Thus it is definitely missed 10 pips profit.
Not to mention the existence of spreads and also the possibility of slippage, then this style feels less profitable.

To do this stop straddle style should use a broker that allows us to straddle with ease. Brokers with MetaTrader platform is highly recommended.
With Metatrader who has the ability to execute the script and the shortcut button would greatly help us in straddle.
With Metatrader, do straddle News released 30 seconds before it is entirely possible to do.

For information, there is also news that does not require us to order or too fast pairs straddle, which is like the ISM Manufacturing News.
Movement of history, news is often cause early spike whipsawed. So we do not need too quickly into the market.
For news-news like this we just do the simple market order when the market clear direction and we can get a decent pips.

Fade The News

2011-08-12T15:19:00.002-07:00

Project Forex & Brokerage 5BKP24RS6NCR Fade The News

Contrary to Trade The Number who installed position in the direction of the spike, Fade The News just put up a position opposite to the spike. Entry made after the initial spike was considered the maximum and the hopes of profit-taking action that makes the price immediately move against the direction of the initial spike.

This method is very effective to face the News class that usually has a spike not more than 30 pips as U.S. Durable Good, U.S. New Home Sales, ADP, PPI. Do not use this method to deal with the Great News as the NFP, Interest Rate Change, CPI, GDP and News of which has a history can move more than 50 pips.

Trade the Number

2011-08-12T15:19:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Trade the Number

Traders who use the style / styles of this trading is the trader who do order positions after the News was released.

There are two ways of doing this type of trading.
1. Take a position before the surge (spike) price occurs.
2. Or if the late entry and the spike has occurred, then the other way is to wait for a retrace and then take a position after the visible retrace is completed and the movement began to move in the direction again with the data released.

With the first way a News Traders can take maximum advantage of price spikes that occur.
But this style is not easy to do. We know that only a micro second later after the News was released then the price hikes will occur.
To use this style is needed:

1. The best news service, classmates Bloomberg, Reuters or SecretNewsWeapon, which is certainly not cheap. Minimum $ 750 / month.
2. Fast internet connection. If possible connected to a Network thier International. ISPs who have it rarely. Even so there must be expensive.
Therefore, if you do not have a Forex account worth $ 30,000 (300jt) should not try to be a Trader with this style. Because the cost is likely not quite fit.

There are other weaknesses of this way of trading that is, if there are 2 digits of data released and turned out to both the conflict it is very possible spike that occurs will be distorted and the price goes up and down very quickly like a yo-yo: D Where can we swept Stop Lost.

While this second way, is less promising high profits, but if done properly and the data values in the releases is strong enough then it is likely much higher profit than the first way because the price movements tend to be relatively more stable and calm.

Forex News Trader Trading Style

2011-08-12T15:18:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Forex News Trader Trading Style

Trading style of a news trader depends on:

1. News faced.
2. Speed News Service is used.
3. Internet speeds are used.

Basically there are 3 trading style used by News Trader:

1. Trade The Number, which is done AFTER News released.
2. Fade The News made and released AFTER News
3. Stop or trap pairs Straddle Batman, who carried out BEFORE News released

Misconception about Trading News

2011-08-12T15:15:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Misconception about Trading News

- News Trading is a quick success in Forex.
- News Traders only need to be online 10 minutes when news was released and gain a lot.

Assumption above usually have in mind the new Trader News:) Although News Trading has a far smaller risk than other methods but is not as easy as turning his hand to succeed as a News Trader. It takes hours of flying high, experience, and speed in thinking to be successful as News Trader.

Observed one by one characteristic of all tradeable News is the first thing to do a News Trader. And this will cost, determination, willing to sacrifice their time and willingness to learn and gather historical data of each news. So a fickle do not expect to succeed as News Trader. Make News Trading as one of your appendages at the trading system.

- News Traders do not need to learn Technical Analysis.
- News Trading does not need to pay attention to trends, because of news events can change the trend.

No one ever denied "Traders Trend is Friend" because that's the reality. It is usually caused by a number direleasenya Economic Indicators can make currencies move against the trend but it is certain that it is temporary. Therefore, observing the prevailing trend and see the current market sentiment News about released is a must so that we can be more vigilant when it comes to a reversal occurs.

Knowing a valid Support and Resistant too, a necessity, especially when we are dealing with News Class II, is almost certainly the effect of such news would not be able to penetrate the numbers support and resistant to the possibility of reversal is also very high.

Function Margin Leverage Against Resistance

2011-08-08T07:43:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Function Margin Leverage Against Resistance
For example, your initial capital deposit of $ 300. If you open a position trading mini lots (10000) requires margin: 10000 (mini lots) x 0002 (1:500) = $ 20. So while capital is held as collateral (margin) to open a mini lot gbp / usd is $ 20. So the rest of your margin to withstand the loss is: $ 300 - $ 20 = $ 280.

Profit from currency gbp / usd for mini lot (10000) is $ 1 per point (pip). So with the example above (the remaining margin is $ 280) you can calculate the strength to withstand the loss is $ 280 (left margin) divided by profit per point (pip) = 1 ie: 280 / 1 = 280 points. So the strength to withstand the maximum loss (before the margin call) is 280 points with the assumption that the currency you use is the gbp / usd with a profit of $ 1/point.

Compare with 1:100 leverage, which means you must provide a capital margin of 10 000 x 0.01, ie: $ 100 to open a position mini lots (10000) currency gbp / usd. The remaining margin to withstand the loss is 300-100 = 200. Profit per point gbp / usd mini lot is $ 1. So your strength to withstand the loss is 200 / 1 = 200 points only.

In conclusion: The leverage function doubles the value of your profits with a relatively small initial capital, while increasing your strength withstand loss.

Hedging techniques fxproyex

2011-08-03T19:05:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Hedging techniques
Hedging is a situation where we open a second position against the currency and the same number of lots. Often hedging is used if the price reverses direction and the trader did not want to cut losses grew up without a loss (to close these positions despite the loss). In general, they use this technique without a stop loss. Another term of the hedging is locking.

Example: A trader open Buy EUR / USD 1 lot then the price moves do not fit expectations (down) and the position is still floating loss (loss of floating) 20 points, the trader can open Sell EUR / USD 1 lot in the same currency so that the losses is locked by only 20 points. Although the price moves in any direction, the floating loss remained 20 points

Average Technique
Averaging is one way to minimize losses by opening similar positions at different levels. The purpose of this averaging is to use the average of the differences in price levels are ordered to minimize loss.

Example: A trader open Buy EUR / USD 1 lot at a price of 2.0100, but the price goes down to as low as 2.0000 so that the experience of floating-point loss -100. The trader can perform averaging by opening a Buy EUR / USD 1 lot at 2.0000 on the spot price. This means that there are two open positions. The first floating loss position -100 points. The second position is 0 points. (Assuming no spread).

If then the price moves up towards 2.0050 first then the floating loss position -50 points, second place 50 points profit. In total the two positions are break-even (BEP). When the price moves up above 2.0050. It means the trader has a profit.

Calculation of Interest / Swap / Rollover / Interest to Stay

2011-08-03T19:03:00.003-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Calculation of Interest / Swap / Rollover / Interest to Stay
Interest / Swap / Rollover / Interest Staying the interest earned or paid traders if there are open positions exceed one day of trading. Limit one trading day is if the position is not closed until the closing time of the world Forex market, namely at the time of closing the New York Market at 1700 (New York time).

To convert New York time to your local time, please go to: http://www.timeanddate.com/worldclock/timezone.html?n=179

When trading forex, which used the actual day is 2 days ahead. Example: Trading on Thursday, then the actual day is Monday (interest calculated as 1 day). Trading on Friday, then the actual day is Tuesday (interest calculated as 1 day), and so on. While the special for Wednesday, the day actually is 3 days, ie Friday, Saturday and Sunday. (Interest is calculated 3 days). Although Saturday and Sunday closed the forex market, interest was calculated 3 days as compensation for trading off.

In the interest calculation: Traders will get a positive rate if the currency bought an interest rate greater than the borrowed

Example:
Pair USD / JPY. USD Swap Rate = 5.25%, JPY Swap Rate = 0.5%
Buy USD / JPY means a trader is buying USD by borrowing JPY. Because interest rates currency bought (USD) greater than borrowed (JPY), the trader will get an interest rate: 5.25% - 0.5% = 4.75% If a trader Sell USD / JPY (means borrowing USD and buy JPY), it will be charged for: -5.25% + 0.5% = -4.75%

Example 2:
Pair EUR / USD. Interest Rate EUR = 3.75%, USD Swap Rate = 5.25%
Buy EUR / USD means a trader buys EUR by borrowing USD. Because interest rates currency bought (EUR) is smaller than borrowed (USD), then the trader will be charged for: 3.75% - 5.25% = -1.5% If a trader Sell EUR / USD (meaning buying USD and borrow EUR) , then it will get an interest rate: -3.75% + 5.25% = 1.5%

Any Forex broker generally provides a list of interest rates (per day) for each pair is used. The list usually includes interest charged to posis Buy and Sell. (Can be in the $ or the point). If the point the trader must first convert into dollars by calculating the value per point pair in question.

understand the calculation of margins

2011-08-03T19:03:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Margin Level
System margin level used on MetaTrader platform. (Please do order with a demo account so you better understand the calculation of margins on the MetaTrader platform)

Level margin calculation formula is:

Level Margin = Equity / Margin used

Free Margin = Equity + Profit Margins + - Loss

Balance = Capital actual current (not yet reduced profit & loss)

Equity is your balance after the plus / minus profit & loss

At all positions clear (no open), Balance = Equity. Because the margin used = 0, Profit / Loss = 0, so it becomes the same as the Free Margin Balance. (See Equity formula above!). Free Margin is money you can withdraw if there are open positions (reserving funds free margin sufficient to withstand losses and prevent Margin Call)

For example the broker determine if Margin Margin Call Level 5% (example: FCMarket.com), then when the "margin used" x 5% = Equity, a margin call will occur. (One by one open position will be closed automatically by until trader is enough to cover loss).

On MetaTrader platform, a trader does not need to calculate the Margin Level manually, because if there are open positions Margin Level will automatically appear on the tab "Trade" in units of percent (%). Traders need to do is keep the margin level is not approaching the limit Margin Call broker. (Eg 5%)

The initial capital - Margins - Loss = 0
There is also the broker determine a margin call if the initial capital - Used Margin - Total Loss = 0. (This also can you imagine that the broker is using the Margin Level 100% when using MetaTrader calculation)

Deposit the initial capital of $ 300. If a trader opens a position trading GBP / USD mini lots (10000) requires margin: 10000 (mini lots) x 0002 (1:500) x 2.0000 = $ 40. So while capital is held as collateral (margin) to open a mini lot gbp / usd is $ 40. So the rest of the margin trader to hold losses were: $ 300 - $ 40 = $ 260

When the floating loss (loss) you reach $ 260 then there is no margin / the remaining funds to hold losses, so one by one your position will be closed automatically by the broker. Then the margin of $ 40 is locked temporarily as collateral to open a position of EUR / USD, will go back into your account after the position is clear / close, so your margin remaining $ 40 only).

Stop Loss Profit Target position by fxproyex

2011-08-03T19:00:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Stop Loss Profit Target position
Buy (Long) Higher than Open Price (based on bid prices) Lower of Open Price (based on bid price)
Sell (Short) Lower of Open Price (based on the ask price) Higher than Open Price (based on the ask price)

Trailing Stop is a facility provided by the forex broker that can change the stop loss to lock in profits automatically in multiples of a certain amount. Trailing Stop is the development of stop loss.

Trailing Stop is generally only works when the trader's position PROFIT HAS MORE THAN THE MINIMUM VALUE OF CERTAIN predetermined broker (eg minimum 15 points). (IMPORTANT: Generally trailing stop running locally on your computer, not on the broker server! If your computer is off, trailing stop also become inactive)

So if you do not profit more than the minimum amount you set a trailing stop, that his position is still DANGEROUS (unless you have used a stop loss). So you should set a stop loss first, then if necessary you can add features trailing stop as a complement. By using this feature you will avoid profit loss if you have exceeded the minimum trailing stop.

Example:
Buy EUR / USD 1.2050, 1.2000 Stop Loss, Trailing Stop 15 points.
If the BID is now located at 1.2070 (had profit of 20 points) then the trailing stop will adjust stop loss to 1.2055 price (20 points minus 15 points profit, ie profit +5 points). That means your profits have been locked by 5 points (on the new position of stop loss is at 1.2055).

Point A: And if the price were to move down to 1.2055 then it will automatically be liquidated on a profit of 5 points. This means that you are no longer possible loss because it has been locked.

But if prices do not go down (as per point A) but prices continue to rise from 1.2050 to 1.2095 (had 45 points profit) then the trailing stop will adjust stop loss to 1.2080 price (45 points minus 15 points profit, ie profit +30 points). That means your profits have been locked by 30 points (on the new position of stop loss is at 1.2080).

Margin Call
Margin call means liquidation is "forced" by the broker because your account does not have sufficient funds to cover / cover your positions are losers.

The basis for determining the Margin Call is usually there are 2 (dependent regulation of each broker):

Profit Target, Stop Loss and Trailing Stop

2011-08-03T18:59:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Profit Target, Stop Loss and Trailing Stop
Target profit is an order to liquidate a position automatically at a specified price when the trader has obtained a number of profit.

For Buy / Long position is located ABOVE the target opening price of the position of the Open Buy / Long.
(Note! Open Buy / Long ASK, Target and Stop Loss is based on BID)

Example: Buy EUR / USD 1.2000, 1.2050 Profit Target (for a profit target of 50 points)

For Sell / Short located BELOW the target price of open positions Sell / Short.
(Note! Sell / Short BID, Target and Stop Loss is based on ASK)

Example: Sell EUR / USD 1.2050, 1.2000 Profit Target (for a profit target of 50 points)

Stop Loss is an order to liquidate a position automatically at a certain price to limit losses that might occur if the market moves against the trader's position.

For Buy / Long position, located BELOW the stop loss opening price of the position of the Open Buy / Long.
(Note! Open Buy / Long ASK, Target and Stop Loss is based on BID)

Example: Buy EUR / USD 1.2050, Stop Loss 1.2000 (stop loss 50 points for loss)

For Sell / Short position is located ABOVE stop loss opening price positioning Sell / Short.
(Note! Sell / Short BID, Target and Stop Loss is based on ASK)

Example: Sell EUR / USD 1.2000, Stop Loss 1.2050 (stop loss 50 points for loss)

Stop Loss can also serve to protect the profit that you have obtained (lock profit). The trick is to change the stop loss position to the top (to Buy) or down (to Sell).

Example:
A trader Open Buy at 2.0000, TP (Take Profit) at 2.0050, SL (Stop Loss) at 1.9970. After a while, the price has moved into the expected direction (up) on the position of 2.0040. In this case the trader is at a floating profit position (open position and in a state of profit) by 40 points. To protect profit as much as 20 points, the trader can move the stop loss on open price + 20-point, ie 2.0020. Why 20 points? Condition is the profit you want to lock, must be smaller than the current floating profit (20 <40 points). When the floating profit then moved to 60 points, the trader can raise the stop loss to 2.0040 to lock the position of profit by 40 points, and so on. This is the basis of the trailing stop.

After filling Take Profit and Stop Loss, then the data will be stored on the server Forex Broker. So you do not have to worry about and can always turn off the computer / internet connection disconnected. Take Profit and Stop Loss will continue to work WITHOUT having to turn on the computer and connect to the internet via a forex broker

Margin Calculation Method fxproyex

2011-08-03T18:53:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Margin Calculation Method fxproyex

There are three types of Currency Pair (Pair):

Direct Rates
Is a pair with USD as the counter currency (USD is located in the rear), example: GBP / USD, EUR / USD, AUD / USD, and NZD / USD
Indirect Rates
Is a pair with USD as the base currency (USD is situated in front), example: USD / JPY, USD / CHF, USD / CAD
Cross Rates
Pairs which did not contain the USD, for example: GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF

Margin Calculation Method Direct Rates (GBP / USD, EUR / USD, AUD / USD, and NZD / USD):

Margin Percentage x Contract Size x Lot x Price Now = Margin

Example:

Sell 3 mini lots GBP / USD at Bid 2.0000 (Remember to use the bid open-Sell!)
0.01 x 10,000 x 3 x 2.0000 = 600 USD (leverage 1:100)
0002 x 10,000 x 3 x 2.0000 = $ 120 (Leverage 1:500) -> Needs a margin less than 1:100!

Margin Calculation Method Indirect Rates (USD / JPY, USD / CHF, USD / CAD):

Margin Percentage x Contract Size x Lot = Margin

Example:

Buy 2 mini lots of USD / JPY at 110.00 Ask (Remember to use the ask price of open Buy!)
0.01 x 10,000 x 2 = 200 USD (leverage 1:100)
0002 x 10,000 x 2 = $ 40 (Leverage 1:500) -> Needs a margin less than 1:100!

Margin Calculation Method Cross Rates (GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF):

Margin Percentage x Contract Size x Price x Lot Middle (*) Now = Margin

Middle Price (*) = (Price Bid Price + Ask) / 2

(Do not forget Base Currency Currency is the basis of which lies in front of the pair. For example, pair EUR / USD -> EUR is the Base Currency, GBP is a QUOTE Currency)

Example:

Buy 1 mini lot EUR / GBP at 0.8020 Ask price (Remember to use the ask price of open Buy!)
Bid / Ask EUR / USD 1.5800/02 (because the Base Currency is the EUR, the price used is the price of EUR / USD)

Price was EUR / USD = (1.5800 + 1.5802) / 2 = 1.5801

0.01 x 10,000 x 1 x 1.5801 = 158.01 USD (leverage 1:100)
0002 x 10,000 x 1 x 1.5801 = $ 31.60 (Leverage 1:500) -> Needs a margin less than 1:100!

From the example above, we see that by using greater leverage, margin / capital needed for collateral is less

Margin and Leverage fxproyex

2011-08-03T18:51:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Margin and Leverage fxproyex
The term leverage (leverage factor, usually in a ratio of 1:50, 1:100, 1:250, or 1:500) in the forex margin trading means that if you want to trade for $ 10,000, you do not need to provide $ 10,000 but fairly, provide a margin of $ 100 ( leverage of 1:100) as a guarantee fund to your broker.

So the margin can be interpreted as guarantees held by the broker when you make trades. Margin would soon be returned to you after you close your account / liquid position you open.

Suppose you have $ 1,000 cash at the broker that has 1:100 leverage. This means you can trade with the amount to nearly $ 100,000 (or nearly as much of your capital 100X). This also means that to use a $ 100,000 contract size you need a 1% margin of $ 1000.

Another example: You have a capital of $ 500 and your broker has a leverage of 1:100, so if you want to buy using 1 mini lot (10,000) then the margin was detained for just 1% of the total contract sizenya (10,000) ie (1% x 10,000) or using a margin of $ 100.

This means that your capital will be held temporarily and are pledged as collateral / margin by the brokers is $ 100, the remaining $ 400 is used to hold your loss.
And when someday you have to liquidate that position then the margin of $ 100 earlier will be returned to you.

The advantage of the leverage is with a smaller capital you can trade with a number of contract size / lot the same as if you do not use leverage.

Or it can be said, with capital equal, you can use the contract size is greater than not using the leverage. So with the same capital, you have a chance to get profit per pip greater.

With or Without Leverage Leverage?

Leverage Margin Margin Requirements Contract Size Used Profit
1:1 (without leverage) 100% $ $ 1,000 $ 1,000 0.1/pip
1:100 1% $ $ 10 $ 1,000 0.1/pip

Leverage Big or Small?

Leverage Margin Margin Requirements Contract Size Used Profit
1:100 1% $ $ 1,000 $ 100,000 10/pip
1:200 0.5% $ 1,000 USD $ 200,000 20/pip
1:500 0.2% $ 1,000 USD $ 500,000 50/pip

Calculating Profit / Loss (Gain / Loss)

2011-08-03T18:50:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Calculating Profit / Loss (Gain / Loss)
The smallest price movement is calculated in units of points / pips. The value of each point will vary according to type of currency pairs (pair), the contract size is used.

Contract size is usually specified in units of lots, Standard lot (100,000), Mini lot (10,000), or Micro lot (1000).

There are three types of Currency Pair (Pair):

Direct Rates
Is a pair with USD as the counter currency (USD is located in the rear), example: GBP / USD, EUR / USD, AUD / USD, and NZD / USD
Indirect Rates
Is a pair with USD as the base currency (USD is situated in front), example: USD / JPY, USD / CHF, USD / CAD
Cross Rates
Pairs which did not contain the USD, for example: GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF

For example, Direct Rates currency (GBP / USD, EUR / USD, AUD / USD, and NZD / USD) way of calculating profit / loss are as follows:

(Selling Price - Purchase Price) x contract size x lot = Calculation of profit / loss

Example:

Buy 3 standard lot EUR / USD 1.2000
Sell (liquid) 3 lots of EUR / USD 1.2010

Profit = (1.2010 - 1.2000) x 100,000 x 3 = $ 300

Sell one standard lot of GBP / USD 2.0001
Buy (liquid) 1 lot GBP / USD 2.0000

Profit = (1.2001 - 1.2000) x 100,000 x 1 = $ 10

Ending in a special currency / USD, there is a way that is easy calculations:
From the above conclusion, it means a profit of 1 point for standard lot (100K) Currency Exchange ending / usd profit is $ 10. While the value of 1 point for 1 mini lot (10K) is $ 1 and for micro lots (1K) per point is worth $ 0.1

For example, the currency Indirect Rates (USD / JPY, USD / CHF, USD / CAD) method of calculating profit / loss are as follows:

[(Selling Price - Purchase Price) / Price Liquidation] x contract size x lot = Calculation of profit / loss

Example:

Buy 1 standard lot USD / JPY 110.00
Sell (liquid) 1 lot USD / JPY 110.01

Profit = [(110.01 - 110.00) / 110.01] x 100,000 x 1 = $ 9.09

Currency Cross Rates For instance (GBP / JPY, EUR / JPY, AUD / JPY, EUR / GBP, and GBP / CHF) method of calculating profit / loss are as follows:

{[(Selling Price - Purchase Price) x Rate Base Currency Current] / Rate Pair Current} x contract size x lot = Calculation of profit / loss

Example:

Sell 1 lot of EUR / USD at price 0.6760 (EUR / USD is the base currency of EUR / GBP, because the front of the EUR / GBP is the Base Currency)
Buy (Liquid) EUR / USD at price 0.6750
Rate EUR / USD: 1.1840

Profit = {[(0.6760 - 0.6750) x 1.1840] / 0.6750} x 100,000 = $ 175.4

Active period of Pending Order

2011-08-03T18:48:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR Active period of Pending Order

GTC (Good Till Cancelled)
Good Till Cancelled means the pending order will remain active without any time limit, unless the trader did cancel it manually. Default of the GTC is a Pending Order
GTD (Good Till Date)
Good Till Date means the pending order will remain active until the time limit set
OCO (Order Cancels Other)
Order Cancels Other means traders ordered two pending orders at once. If one of the pending order is touched, then the other order will automatically be canceled

Stop Orders and Limit Orders (Pending Order)

2011-08-03T18:46:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Stop Orders and Limit Orders (Pending Order)
Pending orders are orders to automatically open a Long position / Short only when the price of your order / message is reached. If the price that you order has not been reached, the pending order will still be active and will wait until the price touched that you order. Pending orders can be divided into 2 of Pending Order Pending Stop and Limit Orders.

If you just want to buy at ANY price now, use the Buy Stop Order. And if you just want to sell at BELOW the current price, use the Sell Stop Order.

If you just want to buy BELOW the current price, use the Buy Limit Order. And if you just want to sell at ANY price now, use the Sell Limit Order.

Example: ASK Price now is 2.0000 and you just want to buy (LONG) if the price moves to 2.0050 then you can use the Buy Stop Order. (Remember the open buy / Long price used is the price of ASK!)

Example: The current BID price is 2.0000 and you just want to sell (SHORT) if the price moves to 1.9950 then you can use the Sell Stop Order. (Remember the open sell / Short price used is the BID!)

Example: ASK Price now is 2.0000 and you just want to buy (LONG) if the price moves to 1.9950 then you can use the Buy Limit Order. (Remember the open buy / Long price used is the price of ASK!)

Example: The current BID price is 2.0000 and you just want to sell (SHORT) if the price moves to 2.0050 then you can use the Sell Limit Order. (Remember the open sell / Short price used is the BID!)

Order Types Buy (Long) Sell (Short)
Market Buying at the Ask price then sell at the bid price at the time
Stop Pending Purchase Order on the current price (Ask) Selling below the current price (Bid)
Limit Pending Purchase Order under the current price (Ask) Selling on the current price (Bid)

Market Order fxproyex

2011-08-03T18:45:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Market Order fxproyex
Market orders mean traders will be trading at prices prevailing at the time. To Buy means buying price "ask" in effect at that time as well, or to Sell meant selling at a price "bid" in effect at that time also

Suppose you would buy a pair EUR / USD, the market was showing 1.2934/1.2938. This means your broker would buy the EUR / USD from you at a price of 1.2934 and 1.2938 for sell to you.

High, Low, Open, Close fxproyek

2011-08-03T18:42:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR High, Low, Open, Close

High: The highest price of the current record opening (open) until the end (closing) period. (Example: the chart period / timeframe of 5 minutes, then the highest price that occurred during the 5 minutes it is a high price)
Low: The lowest price from the current record opening (open) until the end (closing) period. (Example: the chart period / daily timeframe, then the lowest price that occurred during the day it is a low price)
Open: Prices opening period. (Example: the chart period / timeframe of 5 minutes, the price starts at a price of 2.0000. The open price in the range of 5 minutes is 2.0000)
Close: The closing price of a particular period. (Example: the chart period / timeframe 5 minutes in the example above ends with the price of 2.0050. So close prices in the range of 5 minutes is 2.0050)

What Is the meaning of LONG and SHORT positions?

2011-08-03T16:00:00.000-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Is the meaning of LONG and SHORT positions?
BUY LONG or open position is a position in which a trader buys a currency at a specified price and aims to sell it later at a lower tinggi.Jadi investors benefit from a rising market (graph pair up). Suppose you buy in a position to sell at 1.1500 then 1.1525 then you'll benefit as much as 25 points / pips.

BUY LONG or open is to expect the price of currency pair (pair) UP to profit. (Graph pair up) Example: Long (BUY) eur / usd, then you expect the graph eur / usd is UP or the euro strengthened against the usd.

The rise in the price of a pair you can also interpret the currency in the pair FRONT strengthened against the currencies in the rear pair. Example: Graph Pair price eur / usd UP then it means the euro strengthened against the usd.

The price used when OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).

When we open Buy (Long) using the Ask Price, Bid Price on the table then the price should be HIGHER than Ask price (the price of an open Buy position) in order to gain profit.

For ease of position often abbreviated BUY LONG

SHORT SELL or open position is a position in which a trader sells a currency at a specified price and aims to buy later at a lower rendah.Jadi investors benefit from a down market (graph pair down).

SHORT SELL or open is to expect the price of currency pair (pair) DOWN for profit. Example: Short (SELL) eur / usd, then you expect the graph eur / usd is DOWN or the euro weakened against the usd.

The fall in the price of a pair you can also interpret the currency in the pair FRONT weakened against the currencies in the rear pair. Example: Graph Pair price eur / usd DOWN then it means weakening euro against the usd.

The price used when OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).

When we open Sell (Long) uses the Bid Price, Ask Price on the table then the prices should be LOWER than the Bid Price (the price of open Sell position) in order to get Profit

To ease often abbreviated SELL SHORT Position

Position Open by Close with When Prices Rise When Prices Go Down
Long Buy Sell Profit Loss
Short Sell Buy Profit Loss

Quote / rate currency

2011-08-03T15:58:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR
Quote / rate currency
Forex quotes consist of the price of 2 prices, ie lower price (Bid) and a higher price (Ask / Offer).
Bid is the price you sell to forex broker (dealer) or the price at which forex broker (dealer) will buy from you. While Ask / Offer is the price you buy from forex broker (dealer) or the price at which forex broker (dealer) will sell to you. Bid is generally lower than the Ask.

Bid and Ask price difference is the Spread. The smaller the spread dealers more profitable forex trader.

Quote from forex looks like this:

forex quote

Quote namely EUR / USD Bid / Ask: 1.2293/96. Means the selling price to your broker and the buying price of 1.2293 is 1.2296 broker. 1.2296-1.2293 spreads is 3 points.

Example:
You open BUY (Long) EUR / USD at price 1.2296 (Ask), then if the bid is now showing the price of 1.2293, it means you're still a loss of 3 pips. Therefore, every time you open the position will certainly take place minus a spread (ie for example 3 for EUR / USD). To get the profit you have to wait until the price bid on the table more than the price UP 1.2296

Please note:
When you open a Buy position (Long), that means you open a position with the ask price, and then will be closed (close / liquid and including stop loss and profit targets) using the bid price.

When you open positions Sell (Short), that means you open a position with the bid price, and then will be closed (close / liquid and including stop loss and profit targets) using the ask price.

Position Open to Close (TP * / SL **) with
Buy (Long) Price Ask Price Bid
Sell (Short) Price Bid Price Ask

* TP = Take Profit
** SL = Stop Loss

Smallest Currency Unit (point / pip) and Contract Size

2011-08-03T15:56:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Smallest Currency Unit (point / pip) and Contract Size

Point (pip) is the smallest unit of price movements in the forex. One point (pip) for GBP / USD is 0.0001 while the single point for the pair USD / JPY is 0.01. Example: Pair GBP / USD, the movement of 1.8500 to 1.8550 is 50 points.
The value per point (pip) depend on the number of contract size (lot) and the currency used.
Smallest Currency Unit (point / pip) and Contract Size
Contract Size (Lot) is the smallest amount in forex trading. In general, the contract size (lot) which is often used is the Standard Lot, Mini and Micro Lot Lot Standard Lot is $ 100,000, Lot is $ 10,000 Mini and Micro Lot is $ 1000.
If your forex broker supports the Standard and Mini Lot, then that means you can trade with a number multiples of 100,000 and 10,000. For example: $ 30,000, $ 120,000, and others.

World Forex Market

2011-08-03T15:54:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR World Forex Market
Forex market is 24 hours continuous open 5 days per week. The table below us for a second that is based on the New York Times when Day Light Saving Time (DST) and Eastern Standard Time (EST or ET). Starting on March 9, 2008 - 2 November 2008 using the DST (GMT 11 hour faster than the NY Times DST), whereas on 2 November 2008 - March 8, 2009 using the EST (GMT 12 hours faster than the NY Times EST), and so on. For the full list you can check in http://timeanddate.com/worldclock/timezone.html?n=179

Timezone New York (ET / EDT) GMT GMT
Tokyo Open 7:00 7:00 00:00 pm
Tokyo Close 4:00 am 9:00 16:00
London Open 3:00 8:00 15:00 pm
London Close 12:00 pm 17:00 00:00
New York Open 8:00 am 13:00 20:00
New York Close 5:00 pm 22:00 5:00

New York Timezone (DST) GMT GMT
Tokyo Open 7:00 6:00 23:00 pm
Tokyo Close 4:00 am 8:00 15:00
London Open 3:00 7:00 14:00 pm
London Close 12:00 pm 16:00 23:00
New York Open 8:00 am 12:00 19:00
New York Close 5:00 pm 21:00 4:00

Currency Pair (Currency Pair)

2011-08-03T15:53:00.001-07:00

Project Forex & Brokerage 5BKP24RS6NCR Currency Pair (Currency Pair)
Currency (Currency) is always a pair or pairs for each forex transaction means you buy a currency and simultaneously selling another currency. For example rate / exchange rate for the pair GPB / USD GPB / USD = 1.8500, meaning that 1 pound is $ 1.85 USD.

Cross Rate is a currency pair (pair) that do not contain the official currency of a country where the currency is traded, such as foreign exchange transactions conducted in the U.S. (the official currency is USD). This means that the currency pair that does not contain the USD is the cross rate of USD. An example is the GBP / JPY, EUR / GBP, etc.. Pairs that do not involve USD and EUR are called euro involves cross like EUR / GBP.

Currency Pair (Pair) consists of two different currencies quote. Currencies are located on the left is the base currency. as an example of the GBP / USD then GBP called base currecy. While the USD is the quote currency or counter currency.

An example is the quote EUR / USD 1.2500, where as a base currecy EUR and USD as the quote currency. This means that USD 1 is worth U.S. $ 1.25.

If the quote moves from EUR / USD 1.2500 to EUR / USD 1.2510, the euro gained and weakened U.S. dollar. Vice versa if the quote moves from EUR / USD 1.2500 to EUR / USD 1.2490, the euro weakened and the U.S. dollar higher

Currency Pair Graph (Chart) moves EUR (base) USD (quote)
EUR / USD Rise Strengthens Weakens
EUR / USD Down Weakens Strengthens

When you BUY EUR / USD will mean you buy the base currency (EUR) and at the same time selling the quote currency (USD). If you SELL EUR / USD will mean you sell the base currency (EUR) and at the same time buying the quote currency (USD).

Buy EUR / USD -> Buy EUR / Sell USD
Sell EUR / USD -> Sell EUR / Buy USD

Another example:

Pair EUR / USD:
For the prediction of EUR strengthened against the USD, you can BUY EUR / USD
For the prediction USD strengthened against the EUR, you can SELL EUR / USD

Pair USD / JPY:
For the prediction USD strengthened against the USD, you can BUY USD / JPY
For the prediction USD strengthened against the USD, you can SELL USD / JPY

Major Currencies
Major currencies that are common and are often traded in the world are:

Symbol Country Currency
USD United States Dollars
EUR Euro members Euro
GBP Great Britain Pound
JPY Japan Yen
CHF Switzerland Franc
CAD Canada Dollar
AUD Australian Dollar