FAQs in the field of Forex and answers

What is Forex Trading ? What should I know ?Forex trading is to buy a certain currency and sell the other one time . The central idea currency trading market is one currency for another switch while they are taking profit by the increase of the value of the currency in which we purchased for the currency in which we sold .
What is Forex?FX and FOREX are shortcuts to denote 

market in foreign currencies. This market is a different foreign exchange traders around the world . In this market, the value of a particular country's currency to the value weighted currency of another country . Traders reap profits by buying and selling currencies in the global forex market .
What is the size of the foreign exchange market?The foreign exchange market , also known as the forex market, or foreign exchange market , the market is the largest and most liquid financial market in the world. As the daily trading volume of over $ 3.5 trillionWhere is trading going on ?Is trading between traders around the world directly without a certain stock exchange or financial body . This is what makes the forex market depends only on trading between large banks in the world .
Volatile market ?Forex market is characterized by fluctuations some cases . Rolling can control the risk of volatility by exploiting properly leverage off the loss of the deal to the appropriate point .
When the market opens ?How different currencies are traded than traditional securities and stock trading ?
Participates in the market?Dominated central , commercial and investment banks typically the foreign exchange market . But the percentage of the other participants in the fast growing market . These participants include international money managers , brokers, and multinational corporations , and registered dealers , options and futures traders, as well as private investors .
What is the currency pairs ?Always priced in pairs , the first currency is called the base currency or currency while the second currency known as the quote currency , or currency to pay the counter currency.
 What does the price of supply and demand?As with all financial instruments , prices are formed in the currency market of the bid and the ask price. The offer price is the price at which wants mediator buying ( selling price of the trader ) , but the asking price is the price at which wants median sales ( purchase price to the trader ) .

 What is the spread?Called the difference between the purchase price and the selling spread (spread). Traders enjoy company YouTrade prices are very low margins on base pairs starting from one point on the EUR / USD.

What are the seven major currency pairs ?"EURO" is the husband of the euro against the U.S. dollar and symbolizes his pal EUR / USD"Cable" is the GBP against the U.S. dollar and symbolizes his pal GBP / USDUSD / JPY is the husband of the U.S. dollar against the Japanese yen and has no private label"swissy" is the husband of the U.S. dollar against the Swiss franc and symbolizes his pal USD / CHF"Aussie Dollar" is the husband of the AUD against the U.S. dollar and symbolizes his pal AUD / USD"Lonnie" is the husband of the U.S. dollar against the Canadian dollar and symbolizes his pal USD / CAD"Kiwi" is the husband of the U.S. dollar against the New Zealand dollar and symbolizes his pal USD / NZD
What are the crosses?This subset of the major currencies, non- weighted rate of the U.S. dollar :EUR / GBPEUR / JPYEUR / CHFGBP / JPYGBP / CHFYen / Swiss francEtc. ..
 What is the pip / tick?Albebs is the smallest value of the expression of the currency. Namely the fourth status to the right of the comma at all General currencies , except the yen as the Albebs which is the second status and benevolent to the right price point ." Teak " represents the smallest possible change that occurs to the price of a currency pair in the Forex market .For example: change the price of the pair EUR / USD from 1.4796 to 1.4795 called drop by Vives / a = 0.0001

 How do you calculate the value of 1 Vives ( points ) ?In a deal 1 lot ( 100,000 units of the base currency) , the value of one point in this deal 10 units of the second currency.Example: If the trader buying the pair EUR / USD at 1.3673 , then the price rose to 1.3773 , an increase of 100 points ( Vives ) - in this case $ 1,000 a fetus profitably.The method of calculation : Each point in 1 lot deal valued at $ 10 , so the overall tout 10 * 100 = $ 1000Calculate the value of the point as follows: the size of the deal / 10,000
What is the margin ?Margin is the amount required by the real leverage to open the package the size of a particular market . In other words , the deposit is done by rolling to be able to enter the Forex market .In the absence of a sufficient margin to support open positions, the company system Iotrad close all or part of trades to prevent a situation where a negative account balance ! Any system that prevents the loss of an amount greater than your initial deposit !Example:
The rolling deposit of $ 1,000 and use the leverage by 200:1
What is the price that change will lead to lower margin to zero ?If the rolling deposit of $ 1,000 for his account, and got the leverage by 200:1 and took advantage of all the leverage ( open the package size of 200,000) in this case the value of each Vives ( points) are $ 20 ( 200,000 / 10,000) , therefore, lower price by 50 points be enough to reset the account ( 50 * $ 20 = $ 1,000)Or in another way - 1,000 / 200,000 = 0.0050 (50 points)Thus, the largest possible loss to the trader $ 1,000 !
What is the change in price , which will double the investment ?If the rolling of $ 1,000 to the account and got the leverage of 400:1 and has opened a size of 400,000 deal , then the value of each point of $ 40 , in this case, if the Rolling bought the EUR / USD and the price rose by 25 points be lucrative $ 1,000 ( $ 25 * 40 )We have doubled the amount of the deposit