samedi 25 septembre 2010

What forex? part 4

Knowing that Forex is a very volatile market, and that it is current to notice daily variations of more than pips 100, one understand(include) fast that the gains can accumulate in an extraordinary speed!! A small calculation will be more speaking:


- with 2 dollars, we thus buy a 1000-dollar lot of EUR / USD. The price passes from 1,2545 to 1,2645, we thus benefited from an increase of pips 100, that is a 10-dollar profit (10 centimes x pips 100). This profit, brought back(reported) to 2 dollars put in sets, represents a 500 % performance!! In the day!!


- another example: if we use entirely 1000 available dollars and control lever of 500, we can buy 500 1000-dollar lots. If we always base ourselves on a variation of pips 100, the profit will be 10 dollars by contract, that is all in all 5000 dollars by having investing 1000 dollars!! Always in the day!!

A last thing(matter) to be known is that for a pair of given currency, the cost price and the sale price differs:


Example: EUR / USD = purchase 1,2545 / blows = 1,2543

This difference, which we name spread, establishes(constitutes) the payment for your broker. In the practice, it means that when you buy a prize(lot) of EUR / USD, you begin with a loss equivalent to the spread, and are thus a beneficiary only from an increase equivalent to your spread.


Most of the brokers propose spreads of 2 or 3 pips on the EUR / USD. But attention, many also practise prohibitive spreads, pips 5 or 6, or post(show) spread of 1 pip by forgetting to specify that these sound variables, and more often close to 5 pips than to 1...




Now that you likened the basic vocabulary of Forex, as well as its general functioning, you really go to begin to learn how to gain(win) some money(silver) on Forex...

35 commentaires:

  1. Kinda complicated read, maybe i should go through it again.

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  2. Kinda complicated but very informative.

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  3. thanks for the infos ... but it's so damn complicated to understand at first oO

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  4. You've really researched your info. Thanks for the informative post.

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  5. THanks! didn't know any of that before :P

    BTW you can turn off captcha for your comments by going to settings/comments/scroll down. Saves time.

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  6. very good info mate. Keep up the good guides to forex

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  7. quite interesting, wish i had money do work with...

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  8. Great post, showing some love, keep it up =)

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  9. followin 'n' supportin 'n' fappin bro :)

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  10. definnetely gotta love firefox browsing!

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  11. I want to get into forex. Please show us how.

    Following you.

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  12. I just read 4x and thought of a local beer here> 4x ;)

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  13. hey showing my support. check out my blog when you get back!!!
    http://beautifulwomensexypinups.blogspot.com/

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