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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