1:26 AM

What is Forex Trading ?

Posted by Muhammad Farooq


The Forex market is a non-stop cash market where currencies of nations are traded, typically via brokers. Foreign currencies are constantly and simultaneously bought and sold across local and global markets and traders' investments increase or decrease in value based upon currency movements. Foreign exchange market conditions can change at any time in response to real-time events.
The main enticements of currency dealing to private investors and attractions for short-term Forex trading are:

24-hour trading, 5 days a week with non-stop access to global Forex dealers.
An enormous liquid market making it easy to trade most currencies.
Volatile markets offering profit opportunities.
Standard instruments for controlling risk exposure.
The ability to profit in rising or falling markets.
Leveraged trading with low margin requirements.
Many options for zero commission trading.



The investor's goal in Forex trading is to profit from foreign currency movements. Forex trading or currency trading is always done in currency pairs. For example, the exchange rate of EUR/USD on Aug 26th, 2003 was 1.0857. This number is also referred to as a "Forex rate" or just "rate" for short. If the investor had bought 1000 euros on that date, he would have paid 1085.70 U.S. dollars. One year later, the Forex rate was 1.2083, which means that the value of the euro (the numerator of the EUR/USD ratio) increased in relation to the U.S. dollar. The investor could now sell the 1000 euros in order to receive 1208.30 dollars. Therefore, the investor would have USD 122.60 more than what he had started one year earlier. However, to know if the investor made a good investment, one needs to compare this investment option to alternative investments. At the very minimum, the return on investment (ROI) should be compared to the return on a "risk-free" investment. One example of a risk-free investment is long-term U.S. government bonds since there is practically no chance for a default, i.e. the U.S. government going bankrupt or being unable or unwilling to pay its debt obligation.
When trading currencies, trade only when you expect the currency you are buying to increase in value relative to the currency you are selling. If the currency you are buying does increase in value, you must sell back the other currency in order to lock in a profit. An open trade (also called an open position) is a trade in which a trader has bought or sold a particular currency pair and has not yet sold or bought back the equivalent amount to close the position.

However, it is estimated that anywhere from 70%-90% of the FX market is speculative. In other words, the person or institution that bought or sold the currency has no plan to actually take delivery of the currency in the end; rather, they were solely speculating on the movement of that particular currency.

14 comments:

hadikurnia said...

Several months ago I used to trying this bussines, but I never get what I want except just wasting my time. Maybe it's not for me or maybe I'm not in right time to got best result. Peace..Anyway, Great info bro, please visit me backhere in leboncafe

Rizkyzone said...

maaf kawan postingan kamu aq translite biar aq bisa baca dan bisa memahami, buat yang g bisa bahasa inggris

Pasar Forex adalah non-stop pasar tunai mata uang di mana bangsa-bangsa diperdagangkan, biasanya melalui broker. Mata uang asing terus-menerus dan secara simultan dibeli dan dijual di pasar lokal dan global dan pedagang 'investasi peningkatan atau penurunan nilai mata uang berdasarkan gerakan. Kondisi pasar valuta asing dapat berubah setiap saat sebagai respons terhadap peristiwa secara real-time.
Daya tarik utama untuk menangani mata uang investor swasta dan atraksi untuk jangka pendek perdagangan Forex adalah:

24-jam perdagangan, 5 hari seminggu non-stop akses ke dealer Forex global.
Pasar cair yang sangat besar sehingga mudah untuk perdagangan kebanyakan mata uang.
Pasar volatile menawarkan peluang keuntungan.
Standar instrumen untuk mengendalikan eksposur risiko.
Kemampuan untuk keuntungan di pasar naik atau turun.
Leveraged trading dengan persyaratan margin rendah.
Banyak pilihan untuk perdagangan komisi nol.



Tujuan investor dalam perdagangan Forex adalah keuntungan dari pergerakan mata uang asing. Forex trading atau perdagangan mata uang selalu dilakukan dalam pasangan mata uang. Misalnya, nilai tukar EUR / USD pada 26 Agustus 2003 adalah 1,0857. Nomor ini juga disebut sebagai "Forex rate" atau hanya "menilai" singkatnya. Apabila investor telah membeli 1.000 € pada tanggal tersebut, ia akan dibayar $ 1085,70. Satu tahun kemudian, tingkat Forex adalah 1,2083, yang berarti bahwa nilai euro (pembilang dari EUR / USD ratio) meningkat dalam hubungannya dengan dolar AS. Investor sekarang bisa menjual 1.000 € untuk menerima 1.208,30 dolar. Oleh karena itu, investor akan memiliki Rp 122,60 lebih dari apa yang telah dimulai satu tahun sebelumnya. Namun, untuk mengetahui apakah investor melakukan investasi yang bagus, orang perlu membandingkan pilihan investasi ini untuk alternatif investasi. Pada saat yang sangat minimal, tingkat pengembalian investasi (ROI) harus dibandingkan dengan laba atas yang "bebas risiko" investasi. Salah satu contoh dari investasi bebas risiko jangka panjang obligasi pemerintah AS karena praktis tidak ada kesempatan untuk default, yaitu pemerintah AS akan bangkrut atau tidak mampu atau tidak mau membayar kewajiban utang.
Ketika perdagangan mata uang, perdagangan hanya bila Anda mengharapkan mata uang yang Anda beli untuk meningkatkan nilai relatif terhadap mata uang yang Anda jual. Jika mata uang yang Anda beli tidak peningkatan nilai, Anda harus menjual kembali mata uang lain untuk mengunci dalam keuntungan. Perdagangan terbuka (juga disebut posisi terbuka) adalah sebuah perdagangan di mana seorang pedagang telah membeli atau menjual pasangan mata uang tertentu dan belum menjual atau membeli kembali jumlah yang setara untuk menutup posisi.

Namun, diperkirakan bahwa antara 70% -90% dari pasar FX spekulatif. Dengan kata lain, orang atau lembaga yang membeli atau menjual mata uang tidak memiliki rencana untuk benar-benar mengambil kiriman dari mata uang pada akhirnya, melainkan, mereka hanya berspekulasi atas pergerakan mata uang tertentu.

trima kasih kawan, postingannya sangat menarik, tambahan ilmu buat Rizky dalam belajar tentang dunia forex

Anonymous said...

hehe... intresting.. thx for rizky to translate.. hey.. i dont get it.. what about this forex?? how can it gives me benefits..? ^^

Irfan Afif M. said...

mantep deh transletnya dari mas rizky...akhirna ane bisa paham juga..thanks

the56261 said...

bisnis a gain

Anonymous said...

Wah nambah ilmu neh ttg forex, dr dulu pingin nyobain tp msh minus informasi, thx sob online trading featuring sob rizky

Akhatam said...

Wah ilmu bermanfaat...

Nikel Khor said...

i m here..

Nikel Khor

Anonymous said...

https://balluforex.blogspot.com
forex,trading,currency,forex firms,forex rates.

dancilhoney said...

You have instilled the confidence and desire within me to succeed in these volatile markets. futures trading seminars

Inoption said...

Nice information and news about stock markets, online trading, investing. visit here for more detail:
Online Trading Options

Natalia said...

Useful post. The information that you have shared about Forex trading option in this article is really very helpful to me. You have discussed the positive points of doing Forex trading which highly created interest in me to try this option.
digital options

Unknown said...

Forex trading is one type of cash market. Here different people do the cash transaction for earn the maximum profit.
Trading Signals

Unknown said...

In order to earn money faster and even more lots of people are learning trading in Foreign Exchange. Foreign Exchange, Forex, or just FX is getting popularity day by day because of its ease of learning and making money with ease.

Regards,
Forex Fund Manager

Post a Comment