Forex Trading: Speculative Operations Part 2

“Ticket” in community of currency speculators can be acquired today distress prices. Some companies come to clients with only one hundred U.S. dollars to serve. But this amount is really possible to count on profits only under conditions of absolute happiness. The most acceptable minimum salary deposit of $ 2000 and today considered a minimum transaction amount – 100 000 pieces of the base currency. Such conditions permit risk in the transaction only half the deposited amount.

Currency pairs act as the subject of trade. That’s why you need a currency pair to choose for yourself. The most popular are EUR / USD (euro / dollars), JPY / USD (yen / dollar) and GBP / USD (British pound and the dollar). When opening a “long position in euro against U.S. dollar can expect that the common European currency rate in relation to the U.S. will grow. In one case will return your call as short position.

We’ll admit, you have opened a long position on the EUR / USD price of 1.1000. Very good news from Europe (or extremely negative in the U.S.) have come during the day, and the euro exchange rate has risen to 1.1234. The growth has formed 2.13%. However, if your $ 2000 and have enclosed the transaction at 100 000 euros, your days profit 117% – next to no overhead costs.

Fees for trading currencies in the forex market in the majority of companies today are expressed in so-called spreads. The spread is a difference between a rate of purchase and sale of one currency against another, by your broker or bank. In other words, it is the commission of your agent. When overhauling your transactions they underestimated the cost of purchasing just a bit overrated and the price of the sale of currencies.
Distribution of the broker on the EUR / USD can make 5.3 “pips” (the fourth character following a comma in the quotation, for example, 0.03 cents of every dollar) and GBP / CHF (British pound / Swiss francs) – 10 “pips”.

You can leave a response, or trackback from your own site.

Leave a Reply

You must be logged in to post a comment.