The concepts of buying and selling, supply and demand- free training course in Forex lesson 10



In order to know the difference between long and short

First you have to determine your decision Do you want to buy or want to sell?

Yes, I want to buy

Well if you want to purchase, you should know that you actually buy the base currency (which is the left side of the pair, and it is a currency that show movement on the chart) and buying are done by selling the anti-currency (which is on your hand the right side) in the price appearing on right side.
And complete the purchase by clicking the mouse on the price at the right hand side on the request to open the deal to buy it.
In other words, as in the example shown in the picture

pair is EUR / USD

ie. you would buy the euro to sell the dollar

At a price of 1.4503 by clicking on the right side of the price as it appears in 1.4503.
The purchase will be based on your analysis of the market and expectations that the base currency (the euro) probably will increase its value so you will buy it by the process (Long)  which means purchase.
It is called so in the words of the trader, " going long-term or open a Long position.
* Note that Long means you expect that prices will be high on the way to show the outline of the euro currency that the upward trend in the development of any rise.
In the example, the purchase price of the euro at 1.4503

it Means you make a deal (Long) any purchase at the price of 1.4503 you still retain the deal in the window open position, if you want to close the deal when you start your earnings, you have to play by clicking on the price in the box close in the window open positions .
* Therefore, in order trader start profit of first point will be that at a price of 1.4507 after skipping the 3 points, spreads points fare of broker.



Remember that when you pay the spread at purchase transaction

When you buy a currency you will pay the first teams spread between the two currencies because you pay the difference until you open the package and enter the market, and do not pay anything when you go out.
Note that in order with us ..

1.4503 in the price of the entry price in a deal for Long

In the price of 1.4504 was paid 1 point spreads to the broker

In the price of 1.4505 was paid 2 point spreads to the broker

In the price of 1.4506 was paid 3 points spreads for complete broker Fare

In the beginning of the calculation of the price of 1.4507 the first point you won, and every point after that you calculated the profit if the price reaches 1.4520, for example, it means that you gained 13 points ..  

If you want to sell

you should know that you are in fact sell the base currency as well (which is the left side of the currency pair that show movement in the chart) and the sale of the base currency is by the purchase of anti-currency which is the right side of the pair in the price that appears on the right hand
The sale is by clicking the mouse on the price at which you see on the left side to open the sale.
In other words, as in the example shown in the picture

pair is EUR / USD

You are going to sell any euro by buying U.S. dollar

At a price of 1.4503 clicking on the left side of the price as it appears in 1.4500

The sale will be based on your analysis of the market and expectations that the base currency (the euro) may weaken the value of it so you would sell by process (Short) and SHORT means SELL .

It is called so in the words of the trader " going short or Short position.
* Note that the short means you expect that prices will be on its way to landing on the chart and show that the euro currency in a downward trend in the development of any landing.
In the example, the sale price of the euro at 1.4503

it Means you make a transaction (Short) any sale in the price of 1.4503 you still retain the deal in the window open positions, if you want to close the deal when you start your earnings, you have to play by clicking on the price in the box is close in the window open positions .
* Therefore, in order trader start profit of the first point will be that at a price of 1.4499 after skipping the 3 points, spread points broker fare.

Remember that when you pay the spread at sale

When selling of the currency you will not pay the spread between the two currencies when you open the package, but this spread will pay when you want to close the deal and get out of the market.
Note that in order with us ..
1.4503 in the price of the entry price in a short deal
In the price of 1.4502 was paid 1 spread point to the broker
In the price of 1.4501 was paid 2 spread points to the broker
At 1.4500 was paid 3 spread points complete broker Fare
In the beginning of the calculation of the price of 1.4499 the first point you won, and every point after that you calculated the profit if the price reaches 1.4480, for example, means that you gained 19 points ..
The difference between t ASK & BID

You know that the prices of currencies consisting into two parties:

The first party (Ask) and the second party (Bid)

When you want to buy, you take the asking price, and when you want to sell, you sell on the offer price, and pay for any brokerage firm , Spread means the difference between the asking price and the offer price for the pair stores it.
ASK

is the price , where the trader will buy the base currency as an alternative to Anti currency This means that " ASK" is the price at which the dealer will buy the base currency in the pair.

 For example, the asking price is 1.4503 and the trader will buy the euro.

* Therefore, in order to begin the trader win the first point in the price of 1.4507.
BID

where the trader is willing to sell the base currency as an alternative to anti-currency, this means that the price of " BID" is the price at which the trader will sell the base currency in the pair.

For example, the offer price is 1.4500 and according to it the trader will sell the euro.
* Therefore, in order to begin the trader wining the first point in the price of 1.4499.

Remember: when entering or leaving any trade you are subject to the difference between the demand and supply of any Spread, when you buy a currency to be used ask and when it sells will be used Asking Price Bid

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